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Chase Customers Accused of Using Viral ‘Money Glitch’ to Steal $660,000

Chase Customers Accused of Using Viral ‘Money Glitch’ to Steal 0,000

  • JPMorgan Chase has filed four lawsuits in federal court against two individuals and two companies for check fraud in connection with a ‘glitch’ that became popular on social media
  • One person in Texas who allegedly participated in the scheme now owes the bank $290,000, according to a complaint
  • “We are pursuing these cases and actively working with law enforcement to ensure that if anyone commits fraud against Chase and its customers, he or she is held accountable,” a JPMorgan spokesperson tells PEOPLE.

JPMorgan Chase is suing customers for alleged check fraud, claiming they stole hundreds of thousands of dollars after a technical ‘glitch’ that went viral on TikTok.

The banking giant filed four lawsuits on Monday, October 28, in federal courts in California, Florida and Texas. Reuters reported. It accused two people and two companies of withholding more than $661,000 after allegedly depositing counterfeit or forged checks.

The ‘glitch’ that occurred in August, according to Reuters and NBC Newsallowed customers to deposit large checks into ATMs and then quickly withdraw the money before the checks could be cleared or refunded – a trend that became popular on social media, CNBC reported.

According to a complaint filed in Texas and reviewed by PEOPLE, JPMorgan Chase alleged that on August 29, a “masked man” deposited a check at a Chase ATM in the Houston area for $335,000.

“After the check was deposited, (the customer) began withdrawing the vast majority of the ill-gotten funds in quick succession,” the complaint states. “The check was ultimately returned as counterfeit, resulting in a significant negative balance. As of the date of filing, (he) owes Chase $290,939.47.

JPMorgan Chase said in the complaint that it contacted the customer about the counterfeit check and overdraft, but he did not respond. As a result, the bank is seeking a judgment calling for immediate payment of the overdrafts and fees.

Meanwhile, according to a California court filing seen by PEOPLE, JPMorgan Chase said a Los Angeles defendant owed the bank $90,794 after allegedly cashing two checks worth $59,223.45 and $56,840.10 on Aug. 27 and 28 had deposited into an ATM. and then made large withdrawals. The checks were rejected by the issuing bank and ‘returned as counterfeit’.

In another complaint, filed in Florida and reviewed by PEOPLE, a defendant was accused of depositing a fraudulent check into a Chase bank account in the amount of $149,000.00 at an ATM on August 23.

“Specifically, three days later, Defendant made a personal wire transfer of $110,000.00 to a third party,” the complaint states. “Defendant made three more personal withdrawals at the same branch that same day for $5,000.00, $9,900.00 and $10,000.00. After making additional withdrawals, Defendant essentially used up all of the money deposited into his account from the fraudulent check.” The bank said in the complaint that the defendant now owed $141,295.84.

In another similar case, also filed in Florida, JPMorgan Chase alleged in a complaint that an individual deposited two checks for $75,000.00 and $245,999.12 at a Chase ATM on August 28 and 29. -withdrew money from his account.’

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“The checks were ultimately returned as counterfeit, resulting in a significant negative balance,” the complaint added. As of the date of filing, Defendant Chase owes $138,680.91.”

As in the Texas case, JPMorgan Chase is seeking payment of overdraft fees and other related fees from the defendants in the California and Florida cases, the complaints show.

JPMorgan is investigating numerous cases related to the “infinite money glitch.”

In a statement shared with PEOPLE on Wednesday, Oct. 30, a JPMorgan Chase spokesperson said of the bank’s lawsuit: “Fraud is a crime that affects everyone and undermines trust in the banking system. We pursue these cases and actively work with law enforcement to ensure that if anyone commits fraud against Chase and its customers, he or she is held accountable.”

PEOPLE has contacted three of the four defendants named in the complaints.