TikTok ‘money glitch’ results in JP Morgan fraud cases

JP Morgan Chase has initiated lawsuits against customers accused of exploiting a glitch to withdraw large sums from its ATMs. The viral ‘infinite money glitch’ trend on TikTok involved users writing large cheques to themselves, depositing them, and withdrawing the money before the cheques were returned as invalid.

The lawsuits target two individuals and two businesses, demanding the return of funds with interest, reimbursement of overdraft fees, and coverage of legal expenses. In a court filing, JP Morgan revealed that one incident involved a $335,000 cheque deposited on 29 August, with over $290,000 still owed after the cheque was deemed counterfeit.

Bank officials stressed their commitment to fraud prevention, describing bank fraud as a serious crime in court documents. The total amount linked to the defendants in the lawsuits exceeds $660,000. Typically, banks permit customers to withdraw only part of a cheque’s value until it clears.

The Wall Street Journal recently reported that the bank closed the loophole shortly after the glitch went viral. An ongoing investigation by JP Morgan is reviewing thousands of potential fraud cases tied to the incident.