JP Morgan Sued Customers Over Viral Cheque Fraud Scheme
Alleged 'Infinite Money Glitch' Exploited in Multi-Location Lawsuits
JP Morgan Chase is taking legal action against customers accused of exploiting a security loophole, dubbed the 'infinite money glitch' on TikTok, to fraudulently withdraw funds.
This scheme reportedly allowed individuals to write large cheques to themselves, deposit them, and withdraw money before the cheques bounced.
The lawsuits, filed in Houston, Miami, and Los Angeles, involve two individuals and two businesses.
The bank demands the return of funds with interest, plus coverage of overdraft fees and legal expenses.
One notable case detailed a $335,000 counterfeit cheque deposit on August 29, resulting in a $290,000 debt to JP Morgan Chase.
Overall, the fraudulent activity across the four cases amounted to over $660,000.
Traditionally, US banks allow withdrawal of only a small percentage of a cheque's value before clearance.
The Wall Street Journal reported that JP Morgan Chase identified thousands of potential fraud cases and rectified the loophole shortly after its viral spread online.
In court filings, the bank emphasized its commitment to fraud prevention and holding violators accountable.
This scheme reportedly allowed individuals to write large cheques to themselves, deposit them, and withdraw money before the cheques bounced.
The lawsuits, filed in Houston, Miami, and Los Angeles, involve two individuals and two businesses.
The bank demands the return of funds with interest, plus coverage of overdraft fees and legal expenses.
One notable case detailed a $335,000 counterfeit cheque deposit on August 29, resulting in a $290,000 debt to JP Morgan Chase.
Overall, the fraudulent activity across the four cases amounted to over $660,000.
Traditionally, US banks allow withdrawal of only a small percentage of a cheque's value before clearance.
The Wall Street Journal reported that JP Morgan Chase identified thousands of potential fraud cases and rectified the loophole shortly after its viral spread online.
In court filings, the bank emphasized its commitment to fraud prevention and holding violators accountable.