by About two months after Americans posted wild videos touting the money they made from the Chase bank glitch, some of them are facing federal lawsuits.
JPMorgan Chase, America’s largest bank, has begun suing individuals who took advantage of a temporary flaw in its system that allowed them to illegally withdraw money from ATMs using counterfeit checks.
The “infinite money hack,” as many began calling it, became a viral trend on social media in late August and early September. Bank customers reported seeing excess money in their account balances and were able to get money from ATMs before their checks cleared.
JPMorgan quickly clawed back these ill-gotten gains, leading to an influx of panicked opportunists who suffered the consequences of their negative bank balances by the thousands.
One of the most serious cases, according to a lawsuit filed in Texas, involved a Houston man who used a masked accomplice to deposit a fake $335,000 check at an ATM. JPMorgan says this man still owes $290,939.47.
In summary, the Chase Bank problem involved people depositing checks worth more than they had in their checking account. The glitch allowed them to withdraw wads of cash before the fraudulent checks bounced.
“On August 29, 2024, a masked man deposited a check into the 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.”
JPMorgan filed another lawsuit in California, accusing a man of submitting two fraudulent checks to its bank account, one worth $59,223.45 and another worth $56,840 $.10.
The bank claims they are owed more than $90,000.
In a third case, this one filed in Florida, JPMorgan said another fraudulent check scheme cost them more than $141,000.
JPMorgan, the largest U.S. bank by assets, has begun investigating thousands of cases of people taking advantage of the “financial glitch,” but the bank has not disclosed the total amount of its losses, CNBC reported.
Most of the cases reviewed involve much smaller amounts of money that were stolen, according to people with knowledge of the situation who CNBC spoke with.
One of the most recognizable videos from this short-lived trend showed a man walking out of a Chase branch in Yonkers, New York, and clapping as he unfurled a wad of cash.
Later in the video, they roam the streets with hundred-dollar bills in their hands and their Chase debit cards in their mouths.
In each of these cases, JPMorgan claimed to have contacted the suspected thieves but not been reimbursed for the bounced checks.
According to the three complaints seen by DailyMail.com, Chase is demanding return of the stolen funds along with interest and overdraft fees. The bank also wants attorney’s fees.
“Fraud is a crime that affects everyone and undermines confidence in the banking system,” JPMorgan spokesperson Drew Pusateri told CNBC. “We are pursuing these cases and actively cooperating with law enforcement to ensure that if anyone commits fraud against Chase and its customers, they will be held accountable.”
DailyMail.com has contacted JPMorgan for comment.
In the days following the social media craze that saw people clapping outside Chase branches with wads of cash, experts and everyday people alike were quick to tell people hacking the ATMs that they were in for a rude awakening.
Jim Wang, a popular financial educator on TikTok, posted his own take on the madness of Chase’s problems and warned people that they would face serious consequences for what they did.
Jim Wang, a popular financial educator on TikTok, posted his own take on the madness of Chase’s problems and warned people that they would face serious consequences for what they did.
Several images and videos emerged as dozens of people lined up outside Chase bank branches, allegedly hoping to exploit the money problem.
“In the case of this ‘problem,’ it was simply check fraud. You’re going to be in huge trouble if you do something like that,” he said.
“Just because the money shows up in your account doesn’t mean it’s literally yours,” he said. “If you spend it and are forced to pay it back, you’ll have to find a way to pay it back.”
One of the most recognizable videos from this short-lived trend showed a man walking out of a Chase branch in Yonkers, New York, and clapping as he unfurled a wad of cash.
Three of his friends surrounded him as they all celebrated their ill-gotten gains.
They then cruise the streets, hanging from their cars, holding hundred-dollar bills in their hands and beaming with their Chase debit cards in their mouths.
Other videos showed dozens of people lining up outside Chase branches, allegedly hoping to exploit the alleged glitch.
These two people showed their negative account balances after allegedly getting involved in Chase’s money problem.
The euphoria was short-lived, however, as people began sharing screenshots of their Chase accounts with scary negative balances.
A visibly distressed man showed pending deductions from his account balance, one for $31,000 and another for more than $7,000. Both were due to an ATM or deposit error.
“Fuck dude,” he said, rubbing his face. “They actually told me to log in, the next day it was supposed to be cleared, but look at my account.”
Another person showed that their account was in the red by almost $11,000 after participating in the trend.
Although JPMorgan has filed three lawsuits in federal court so far, check fraud can also be prosecuted at the state level.
The maximum penalty for large-scale thefts of money from financial institutions is a fine of $1 million and 30 years of imprisonment.
