JPMorgan begins suing customers who allegedly stole thousands of dollars in 'infinite money glitch'

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JPMorgan Chase has begun suing customers who allegedly stole thousands of dollars from ATMs by taking advantage of a technical glitch that allowed them to withdraw funds before a check bounced.

The bank on Monday filed lawsuits in at least three federal courts, taking aim at some of the people who withdrew the highest amounts in the so-called infinite money glitch that went viral on TikTok and other social media platforms in late August.

A Houston case involves a man who owes JPMorgan $290,939.47 after an unidentified accomplice deposited a counterfeit $335,000 check at an ATM, according to the bank.

«On August 29, 2024, a masked man deposited a check in Defendant's Chase bank account in the amount of $335,000,» the bank said in the Texas filing. «After the check was deposited, Defendant began withdrawing the vast majority of the ill-gotten funds.»

JPMorgan, the biggest U.S. bank by assets, is investigating thousands of possible cases related to the «infinite money glitch,» though it hasn't disclosed the scope of associated losses. Despite the waning use of paper checks as digital forms of payment gain popularity, they're still a major avenue for fraud, resulting in $26.6 billion in losses globally last year, according to Nasdaq's Global Financial Crime Report.

The infinite money glitch episode highlights the risk that social media can amplify vulnerabilities discovered at a financial institution. Videos began circulating in late August showing people celebrating the withdrawal of wads of cash from Chase ATMs shortly after bad checks were deposited.

Normally, banks only make available a fraction of the value of a check until it clears, which takes several days. JPMorgan says it closed the loophole a few