JPMorgan Chase is now taking legal action against customers who extracted money from the bank’s ATMs using an illicit banking “glitch.”
The bank is suing people who allegedly pulled thousands of dollars from the banks’ ATMs over the summer using a check fraud scheme that went viral.
The scheme centers on depositing a fake check into an ATM.
Once a fake check is deposited, customers then withdraw funds that are automatically credited to the account, knowing the check will later bounce and the funds will vanish.
Court documents show a Houston man is among the customers being sued by Chase. According to the bank’s complaint, the man had an accomplice deposit a counterfeit check for $335,000 into his account.
After the fraudulent deposit was made, the man allegedly withdrew a total of $290,939, reports CNBC.
“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.”
Chase has not said how much money was lost to the scheme in total, although the lender is investigating “thousands” of possible cases.
The bank has filed other lawsuits in Miami and California, stating customers took between $80,000 and $141,000. However, most of the cases being investigated are believed to be for significantly smaller amounts.
Chase says its security team is reaching out to customers first, taking legal action if the illicit withdrawals are not repaid.
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