JPMorgan Chase Sues Fraudsters Over Viral ATM Glitch
The largest bank in the United States, JPMorgan Chase, has initiated legal action against fraudsters who illicitly withdrew substantial sums through ATMs by exploiting a system vulnerability.
The situation went viral on social media platforms X and TikTok over the summer, after perpetrators learned to exploit a technical glitch to deposit counterfeit checks and instantly withdraw funds before the checks were declined. Since late August, videos have surfaced online showing individuals demonstrating how they withdrew large sums from Chase ATMs shortly after depositing invalid checks.
Typically, banks grant access to only a portion of a check’s value until it fully clears, a process that takes several days. JPMorgan reports that it resolved the vulnerability within days of its discovery.
A bank representative, while declining to reveal specific data on the volume of such transactions or the exact amount of losses, confirmed that four lawsuits have been filed in federal courts in Texas, Florida, and California. The bank is actively cooperating with law enforcement to hold the perpetrators accountable and restore customer trust.
One case involves a man who owed JPMorgan nearly $291,000 after an accomplice deposited a counterfeit check for $335,000 into his account, following which the client began withdrawing the ill-gotten funds actively. Other cases involve the companies In and Out Appliances LLC and Riskboss Musiq LLC, with damages in these instances reportedly ranging from $80,000 to $141,000, according to CNBC.
While most of the cases under JPMorgan’s review involve smaller amounts, in each instance, the bank was unable to recover the funds, violating the deposit agreement signed by customers when opening accounts.
In its complaints, JPMorgan is seeking the recovery of funds with interest, overdraft penalties, legal costs, and, in some instances, punitive damages. The civil lawsuits may only mark the beginning of a wave of litigation aimed at compelling clients to repay debts and reinforcing the bank’s firm stance against fraud. Priority has been given to cases involving significant sums and suspected links to criminal groups.
The civil suits do not preclude potential criminal charges—JPMorgan has forwarded information on numerous cases to law enforcement agencies nationwide.
