JPMorgan Chase is suing customers over the viral check fraud scam

JPMorgan Chase has begun to file lawsuits against people that exploited the viral “infinite money glitch”—or committed check fraud—this summer.

In August, posts began circulating on social media showing users how to exploit “the glitch” by depositing into the bank’s ATMs bogus checks for large amounts, and withdrawing some of those available funds before the check bounced. The now-closed loophole quickly went viral, with social media users cashing in on the trend and flaunting their success for all to see.

Now Chase is hitting back with a handful of lawsuits, CNBC reported, including one in the District Court for the Southern District of Texas. “On August 29, 2024, a masked man deposited a check in Defendant’s Chase bank account in the amount of $335,000,” the bank said in the Texas filing. “After the check was deposited, Defendant began withdrawing the vast majority of the ill-gotten funds.” The check was declined for being fake, but the bank found that the man owes JPMorgan $290,939.47.

Additional lawsuits were also filed in Miami and the Central District of California, where the defendent allegedly deposited two fraudulent checks totaling $116,063.55. While the checks were eventually returned, Chase alleges he owes the bank $90,794.02 and has failed to pay the amount of overdraft plus applicable fees. Those involved in the trend are now showing their severely negative accounts online and talking about lawyering up.

Chase is seeking the return of the stolen funds with interest and overdraft fees. This is in addition to lawyers’ fees and, in some cases, punitive damages, according to the complaints.

“Chase takes its responsibility to combat fraud seriously and prioritizes protecting the firm and its customers to make the banking system safer,” the bank said in the filings dated Monday. “Part of that responsibility is to hold people accountable when they commit fraud against Chase and its customers. Simply put, engaging in bank fraud is a crime.”

“Fraud is a crime that impacts everyone and undermines trust in the banking system,” a Chase spokesperson said. “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.”

Check fraud results in roughly $26.6 billion in losses annually, according to Nasdaq’s Global Financial Crime Report. In 2023, 80% of check fraud took place in the Americas.