The largest US Bank JPMorgan Chase has taken legal action against scammers who exploited a vulnerability in the system to illegally withdraw large amounts of money through ATMs.
The issue gained viral attention on social networks like X and Tiktok during the summer when attackers discovered a technical glitch that allowed them to cash fake checks and immediately withdraw money before the checks were rejected. Videos began circulating on the internet in late August, showing people withdrawing large sums of money from Chase ATMs using invalid checks.
Typically, banks only provide access to a portion of the check amount before it is fully processed, which can take several days. JPMorgan took swift action to address the vulnerability once it was detected.
A spokesperson for the bank, while not disclosing specific details about the number of fraudulent transactions or the total amount of losses, confirmed that four lawsuits have been filed in federal courts in Texas, Florida, and California. JPMorgan is working closely with law enforcement agencies to hold the scammers accountable and restore trust among customers.
One case involves a man who now owes JPMorgan nearly $291,000 after an accomplice deposited a fake $335,000 check into his account, leading the man to withdraw the illicit funds. Other cases involve In and Out Appliances LLC and Riskboss Musiq LLC. According to CNBC, the damages in these cases range from $80,000 to $141,000.
While most of the cases involve smaller amounts, JPMorgan has not received any refunds, a violation of the deposit agreements signed by customers when they opened their accounts.
In its lawsuits, JPMorgan is seeking repayment with interest, penalties for damages, legal fees, and in some cases, punitive compensation. These civil cases may mark the beginning of a wave of legal actions to compel customers to repay debts, demonstrating the bank’s commitment to fighting fraud. The bank is prioritizing cases with larger sums and alleged connections to criminal organizations.
Civil claims do not preclude potential criminal prosecution – JPMorgan has shared information on several cases with law enforcement agencies nationwide.
* The social network referred to is prohibited in the Russian Federation.