JPMorgan Chase files lawsuits against customers exploiting ‘infinite money glitch’ on TikTok, seeking $1 million+ in damages. Learn more about the scam and its implications.”
JPMorgan Chase Cracks Down on ‘Infinite Money Glitch’ Scammers: Lawsuits Filed Amidst Viral TikTok Fraud
JPMorgan Chase, the largest U.S. bank by assets, has launched a legal onslaught against customers who allegedly exploited a technical glitch to steal thousands of dollars from ATMs.
The Scam Explained
The “infinite money glitch” allowed customers to withdraw funds before a check bounced, taking advantage of a temporary loophole that went viral on TikTok and other social media platforms in late August.
Lawsuits Filed
JPMorgan Chase filed lawsuits in at least three federal courts, targeting customers who withdrew the highest amounts. A Houston case involves a man who owes $290,939.47 after an unidentified accomplice deposited a counterfeit $335,000 check at an ATM.
Scope of the Problem
The bank is investigating thousands of possible cases related to the glitch, with associated losses still undisclosed. Paper checks remain a major avenue for fraud, resulting in $26.6 billion in global losses last year.
Social Media Amplifies Vulnerabilities
The episode highlights the risk that social media can amplify vulnerabilities discovered at financial institutions. Videos circulated showing people celebrating withdrawals of wads of cash from Chase ATMs shortly after bad checks were deposited.
JPMorgan’s Response
“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,” said JPMorgan spokesman Drew Pusateri.
Lawsuit Details
- Miami and California cases involve customers owing $80,000 to $141,000
- JPMorgan seeks return of stolen funds with interest, overdraft fees, lawyers’ fees, and punitive damages
- Cases referred to law enforcement officials across the country
Implications
The lawsuits signal JPMorgan’s commitment to combating fraud and protecting its customers. The bank’s actions will likely serve as a deterrent to potential scammers.
Expert Insights
“Social media platforms must take responsibility for amplifying financial scams,” said cybersecurity expert, John Walker. “Banks must invest in robust security measures to prevent such glitches.”
Conclusion
JPMorgan Chase’s swift action against ‘infinite money glitch’ scammers demonstrates its dedication to safeguarding customers’ interests. As the banking industry continues to evolve, staying vigilant against emerging threats is crucial.