Chase begins suing customers who allegedly had funds stolen in ATM glitch scam that went viral

JPMorgan Chase filed four lawsuits in federal court on Monday against customers who allegedly stole tens of thousands of dollars from banks in an “unlimited money” stunt after disclosures of an ATM system security flaw that went viral over the summer.

The videos keep circulating social media before Labor Day, discovering a glitch in the bank’s system would have allowed customers to make easy money, but in reality it was a scam.

(Jeenah Moon/Bloomberg via Getty Images)

Several accounts on TikTok and other platforms touted a scheme that instructed Chase account holders to write themselves a large check (often for tens of thousands of dollars), deposit it using a mobile device, then go to an ATM and withdraw the funds before the check cleared.

Some videos allegedly showed people celebrating their sudden wealth, while others showed the aftermath of accounts with huge negative balances allegedly being frozen.

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Now Chase is demanding a refund.

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In one of the complaints filed in the Southern District of Texas, Chase alleges that on August 24, a masked man deposited a check for $335,000 into the defendant’s ATM account, and after the deposit was made, the account holder began withdrawing the vast majority of the funds. The check was then returned as fraudulent, leaving a “significantly negative balance.” Chase claims the defendant still owes the bank $290,939.47.

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The second case was brought in the Central District of California against a defendant who allegedly owed Chase $90,794.02 after depositing two separate checks in late August for more than $50,000 each and then withdrawing a significant portion of the funds before they bounced.

(Gary Hershorn/Getty Images)

The other two cases were filed in the Southern District of Florida against separate companies that allegedly participated in the scheme and owe Chase approximately $140,000 each.

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“Fraud is a crime that impacts everyone and undermines confidence in the banking system,” said Chase spokesman Drew Pusateri. FOX company in a statement. “We are investigating these matters and actively working with law enforcement to ensure that if anyone commits fraud against Chase and its customers, they are held accountable.”