A TikTok video explaining how to get endless money out of the ATM went viral in late August, and some JPMorgan Chase customers discovered a glitch in the bank’s ATM system that allowed them to withdraw thousands of dollars in bank funds before a check bounced.
One of the most outrageous cases involves a man in Houston whose accomplice deposited a counterfeit $335,000 check at an ATM and then took out $290,939.47 of stolen funds. This sounds like a scene from a heist movie, but it actually happened.
“On August 29, 2024, a masked man deposited a check in Defendant’s Chase bank account in the amount of $335,000,” the bank stated in the Texas filing, “after the check was deposited, Defendant began withdrawing the vast majority of the ill-gotten funds.”
The bank provided a clear explanation of the problem they had encountered with this particular customer in the federal lawsuits they filed on Monday with at least three federal courts.
Although checks are no longer a popular way to pay, they are nevertheless a major source of fraud since they are still utilized for big purchases and money transfers. The Global Financial Crime Report from Nasdaq states that check fraud cost the world $26.6 billion in losses last year.
The bank will penalize people who continue to live paycheck to paycheck and get their paychecks by closing this loophole after this experience.
JPMorgan Chase litigation
Depending on the state, the case, and the amount, the bank has moved quickly to bring both civil and criminal lawsuits. Additionally, they have forwarded some cases to police agencies for additional examination.
Some criminal charges involving defendants who owe the bank amounts ranging from roughly $80,000 to $141,000 have been filed in places such as Miami and the Central District of California.
The majority of the instances were smaller, and the bank decided to use their security staff to handle as many of them in private as possible.
Customers are being contacted by bank employees to remind them that they have violated the deposit agreement they signed when opening an account with the bank and that they must return the stolen money along with interest, overdraft fees, legal fees, and, in certain situations, punitive damages.
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Depending on the quantity of money stolen, cases are then filed with the proper court when those approaches fail.
The goal is to prosecute all cases where the money is not returned to the satisfaction of the bank’s officials, even though the bank is undoubtedly giving priority to the cases where the most money was taken.
