What is "infinite money glitch"? JPMorgan Chase suing TikTokers who took advantage of the ATM scam
JPMorgan Chase & Co. is suing TikTokers and businesses that took advantage of the bank's "infinite money glitch," which the bank called check fraud. In August 2024, social media users alerted people that the bank was experiencing a glitch that allowed customers to deposit fake checks for huge amounts of money and withdraw said money from ATMs before the check bounced, dubbing it the "infinite money glitch."
Videos on TikTok showed JPMorgan Chase customers depositing phoney checks and withdrawing money they didn't have in their accounts before the checks cleared.
According to CNBC, the bank filed four lawsuits on October 28 against two individuals and two businesses, who allegedly exploited the glitch and collectively withdrew over $661,000. The suits were filed in Houston, Los Angeles and Miami.
One case filed against a man in Houston accused him of depositing a check for $335,000 and withdrawing $290,939.47 before the bank was alerted of the fraud. The unidentified man reportedly wore a mask when he stopped by to deposit the check. The lawsuit claimed:
“On August 29, 2024, a masked man deposited a check in Defendant’s Chase bank account in the amount of $335,000. After the check was deposited, Defendant began withdrawing the vast majority of the ill-gotten funds.”
The other lawsuits targeted customers who allegedly owed the bank a sum of money between $80,000 to $141,000. JPMorgan Chase & Co. is also taking action against others who withdrew smaller amounts using the "infinite money glitch," hoping to get the money back with interest and overdraft fees.
"Fraud is a crime that impacts everyone" — a JPMorgan Chase representative about the "infinite money glitch"
The "infinite money glitch" went viral on TikTok in August 2024 after several TikTok users uploaded a video of themselves using counterfeit checks to withdraw huge sums of money. Some videos showed customers joyfully throwing the money in the air and celebrating.
However, the bank soon deducted the money from their accounts. Several people who partook in the "infinite money glitch" noted their accounts were blocked and their balance was negative.
In a statement to Fortune in September, JPMorgan Chase revealed the bank was aware of the glitch, adding that people who participated in it were committing check fraud.
“We are aware of this incident, and it has been addressed. Regardless of what you see online, depositing a fraudulent check and withdrawing the funds from your account is fraud, plain and simple,” the statement said.
Two months after the glitch, the bank started filing lawsuits against the perpetrators. In a statement to CNBC, Drew Pusateri, a JPMorgan Chase spokesperson, said the bank was pursuing the cases because fraud impacted everyone, adding:
“Fraud is a crime that impacts everyone and undermines trust in the banking system. 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.”
For the unversed, JPMorgan Chase & Co. is the largest bank in the US. First started in 1799, the bank has its headquarters in NYC.