JPMorgan Chase has filed lawsuits against several customers who allegedly exploited a glitch in its ATM system, allowing them to withdraw large sums of money against checks that had not yet cleared.
The so-called “infinite money glitch” went viral on platforms like TikTok in late August, with videos showing users pulling stacks of cash from Chase ATMs. Now, JPMorgan, the largest bank in the U.S. by assets, is pursuing legal action in at least three federal courts as it aims to recover losses tied to these fraudulent withdrawals.
One of the most significant cases involves a customer in Houston who, according to court filings, owes the bank nearly $291,000. In that case, a masked accomplice allegedly deposited a counterfeit check for $335,000 into the defendant’s account, enabling the customer to withdraw most of the funds before the check inevitably bounced.
JPMorgan asserts that the loophole, which was quickly patched, allowed funds from deposited checks to become available prematurely, providing an opening for fraudulent activity.
The problem underscores how rapidly social media can expose vulnerabilities in the financial system, as videos celebrating the glitch gained traction online almost instantly. Typically, banks release only a fraction of a check’s amount until it clears—a process that takes several days.
However, JPMorgan acknowledged that a flaw in its system briefly allowed certain checks to appear as fully available, spurring fraudulent withdrawals before the checks were returned as invalid.
With over $26 billion lost to check fraud worldwide in the previous year, according to Nasdaq’s Global Financial Crime Report, JPMorgan is now tackling cases across the U.S., including in Miami and California, with amounts owed ranging from $80,000 to $141,000.
While some instances involve smaller amounts, JPMorgan has prioritized those with large sums and potential links to organized criminal activity.
The bank is seeking restitution for the withdrawn funds, interest, overdraft fees, and, in some cases, punitive damages. It’s a sweeping move to reclaim losses and signal that fraud will not go unchallenged.
Drew Pusateri, a spokesperson for JPMorgan, emphasized the broader impact of fraud on the banking system, stating, “Fraud is a crime that impacts everyone and undermines trust in the banking system.”
