'Infinite Money' Lawsuit

JPMorgan Chase has begun suing people who took advantage of the summer’s so-called “infinite money glitch" that enabled them to withdraw thousands of dollars from Chase ATMs. The bank filed suits in three federal courts—in Texas, Florida, and California—to try to recoup an untold amount of losses.

In August, videos began circulating on TikTok on how to exploit the “glitch." Generally, a person either wrote and deposited a fake paper check, or one person deposited a fake check while an accomplice withdrew the funds before JPMorgan had time to bounce the check. JPMorgan fixed the vulnerability, but yesterday’s lawsuits began to showcase the scheme's impact. In one case, a man from Houston is accused of stealing $290K after an accomplice deposited a fake check for $335K. Other cases involve owed sums ranging between $80K and $141K.

Paper check usage has declined in recent years and accounts for an estimated 5% of transactions. Last year, fraud involving checks resulted in $26.6B in losses.