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The “infinite money glitch,” which went viral, made it possible to take money out of checks before the bank cleared them.
Customers who reportedly exploited a problem to unlawfully withdraw thousands of dollars from US banking firm JP Morgan Chase’s ATMs are being sued.
Customers of the bank were able to write a sizable check to themselves, deposit it, and then take out the money before the check bounced thanks to what TikTok dubbed the “infinite money glitch.”
Courts in Houston, Miami, and Los Angeles are considering lawsuits against two people and two companies.
They must reimburse the money, together with interest, pay the associated overdraft fees, pay legal fees, and cover additional expenditures incurred by the bank.
“Chase takes its responsibility to combat fraud seriously and prioritises protecting the firm and its customers to make the banking system safer,” the bank stated in its court filings.
Holding individuals accountable when they defraud Chase and its clients is a part of that duty. To put it plainly, bank fraud is illegal.
In one of the cases, a court document detailed how a guy wearing a mask put a $335,000 (£258,300) check into the defendant’s Chase bank account on August 29.
The defendant then began to take the money out, according to the court documents.
The lawsuit further stated that even after the check was ultimately returned as a fake, the defendant still owed the bank almost $290,000.
According to the attorneys for JP Morgan Chase, the defendants in the four lawsuits held more than $660,000 in cash.
Only a limited portion of a check’s value can typically be withdrawn by US banks before it is cleared.
A few days after many videos alerting consumers to the bug went popular on social media, the Wall Street Journal reported last month that JP Morgan Chase has closed the loophole.
According to the article, the bank was looking into thousands of potential cases of check fraud.
