JPMorgan Chase in Fraud Scandal: Bank Takes Legal Action Against Customers

A remarkable incident has prompted JPMorgan Chase to take legal action against individual customers and businesses. The reason: a technical error allowed fraudsters to deposit fake checks and subsequently withdraw unlawfully large amounts of cash from ATMs. This glitch, dubbed "infinite money," made the rounds on platforms such as TikTok at the end of August, enticing some people to withdraw quick cash before the checks were recognized as invalid. In total, the bank is pursuing lawsuits in three federal courts against two individuals and two businesses, who together withdrew nearly $662,000. "Fraud is a crime that affects everyone and undermines trust in the banking system," said Drew Pusateri, a spokesperson for Chase. The bank emphasizes its commitment to pursuing such cases of fraud and works closely with investigative authorities to ensure that perpetrators are held accountable. In Houston, one of the cases was recorded where a "masked man" deposited a check for $335,000 into an account and subsequently withdrew $290,947.39 before the check was recognized as a forgery. In California, an individual is accused of depositing fake checks worth over $116,063.55 and transferring over $90,000 on August 27 and 28, 2024. In Miami, lawsuits have been filed against the companies In and Out Appliances and Riskboss Musiq, which allegedly owe the bank $138,680.91 and $141,295.84, respectively. In each of these cases, JPMorgan Chase demands the repayment of the overdrawn amounts, including incurred fees, but the accused are said to have refused. While the methods of fraud become increasingly sophisticated over time, the fundamental intent to deceive and exploit remains unchanged. The bank expresses this sentiment equally in all four cases.