JPMorgan sues customer who allegedly withdrew $290,939 from bank using illegal ATM ‘glitch’: report

JPMorgan Chase is now taking legal action against customers who withdrew money from the bank’s ATMs by taking advantage of an illegal banking “glitch.”

A bank is suing people who allegedly withdrew thousands of dollars from the bank’s ATMs over the summer in a check fraud scam that went viral.

Diagram focuses on depositing a fake check in an ATM.

After depositing a fraudulent check, customers withdraw the funds, which are automatically deposited into the account, knowing that the check will later bounce and the funds will disappear.

Court documents show one of the customers Chase is suing is a Houston man. According to the bank’s complaint, the man’s associate deposited a fraudulent check for $335,000 into his account.

After making the fraudulent deposit, the man allegedly withdrew a total of $290,939. reports CNBC.

“On August 29, 2024, a masked man deposited a check into defendant’s Chase bank account in the amount of $335,000.

After depositing the check, defendant began withdrawing the vast majority of his ill-gotten funds.”

Chase did not say how much money it lost in total under the program, although the lender is investigating “thousands” of possible cases.

The bank filed other lawsuits in Miami and California, alleging that customers took between $80,000 and $141,000. However, most of the cases being investigated are believed to involve much smaller amounts.

Chase says its security team contacts customers first and takes legal action if illegal withdrawals are not repaid.

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