JPMorgan Chase Suing Customers for Check Fraud After ‘Infinite Money Glitch’

In four civil lawsuits filed in three federal courts, banking behemoth JPMorgan is demanding the return of money allegedly withdrawn from Chase ATMs through a technical error collectively called the “infinite money glitch.” Videos of the purported fraudsters went viral via social media posts in late August.

The videos showed the alleged customers depositing large checks written to themselves and then immediately withdrawing cash. An ATM technical error credited the deposit and processed the funds’ withdrawal despite the check not properly clearing.

Once the discrepancy was noticed, JPMorgan Chase fixed the error, but not before thousands of dollars were withdrawn. Now, the bank is going after the perpetrators for check fraud and violations related to the deposit agreement every customer signs when opening an account.

JPMorgan Chase Check Fraud Cases

The biggest case alleges an unidentified man deposited a fake $335,000 check and then took out a majority of it in cash. The other cases allege customers took various sums between $80,000 and $141,000.

Of the four lawsuits, JPMorgan is collectively demanding the return of nearly $662,000 purportedly taken by the defendants. The banking giant is also asking for payment of legal and other fees as well as punitive damages in a couple of the cases.

Reportedly, JPMorgan is investigating thousands of “infinite money glitch“ incidents involving much smaller amounts. The bank purportedly intends to follow up on each case and hold account owners responsible if proven they participated in any fraud.

The JPMorgan Chase civil lawsuits are likely just the beginning. According to people familiar with the matter, “JPMorgan prioritized cases with large dollar amounts and indications of possible ties to criminal groups.” Though these civil cases aren’t necessarily connected to potential criminal investigations, the organization noted that it has handed some cases over to various law enforcement agencies for further investigation.

“Fraud is a crime that impacts everyone and undermines trust in the banking system,” said Drew Pusateri, a Chase spokesperson, per CNN. “We’re pursuing these cases and actively cooperating with law enforcement to make sure if someone is committing fraud against Chase and its customers, they’re held accountable.”