Chase starts suing people over ‘infinite money problem’
In August, a few videos went viral on X and Tik Tok with instructions on how to get free money from Chase and other banks. These videos showed people celebrating the withdrawal of huge sums of money from Chase ATMs shortly after bad checks were deposited.
The viral videos described a “loophole” that included the deposit of fake checks for a large amount. Then they would withdraw the funds before the checks cleared and bounced. Most banks will immediately make a portion of deposited checks available. Chase was apparently a little too generous in this area, but Fidelity and a few other banks were also affected.
Days after the videos went viral, JPMorgan Chase clarified that it was check fraud. The bank has now started taking legal action against customers who allegedly stole thousands of dollars from ATMs by taking advantage of a technical glitch.
Today, JPMorgan Chase filed lawsuits in at least three federal courts, targeting some of the people who withdrew the largest amounts.
One such case involves a Houston man, Timipah Ikemi, who owes Chase $290,939.47 after an unidentified accomplice deposited a counterfeit check for $335,000 at an ATM. The other lawsuits filed Monday are in courts including Miami and the Central District of California, and involve cases in which JPMorgan claims its clients owe the bank amounts ranging from about $80,000 to $141,000 .
Chase says its security team contacted suspected fraudsters but was not reimbursed for the fake checks. The bank claims this is a violation of the deposit agreement that customers sign when creating an account with the bank. Chase is seeking return of the stolen funds along with interest and overdraft fees, as well as attorney’s fees and, in some cases, punitive damages, according to CNBC.