JP Morgan sues customers over viral check fraud

American banking giant JP Morgan Chase is suing customers who allegedly took advantage of the glitch and illegally withdrew thousands of dollars from ATMs.

The “infinite money bug,” as it became known on TikTok, allowed bank customers to write themselves a large check, deposit it, and then withdraw the funds before the check bounced.

Two individuals and two companies are facing trial in Houston, Miami and Los Angeles.

They are asked to return the money plus interest, pay overdraft fees and cover legal and other costs incurred by the bank.

“Chase takes its responsibility to combat fraud seriously and prioritizes protecting the company and its customers to make the banking system more secure,” the bank said in a court filing.

“Part of that responsibility is to hold people accountable when they commit fraud against Chase and its customers. Simply put, engaging in bank fraud is a crime.”

In one case, court records show that on August 29, a masked man deposited a check into the defendant’s Chase bank account for $335,000 (£258,300).

Court documents show the defendant then began withdrawing the money.

Ultimately, the check was returned as fraudulent, but the defendant still owed the bank more than $290,000, he added.

According to JP Morgan Chase lawyers, the amount of money retained by defendants in the four lawsuits exceeded $660,000.

U.S. banks typically allow customers to withdraw only a small portion of the value of a check before it clears.

Last month, the Wall Street Journal reported that JP Morgan Chase had patched the flaw, days after several videos telling people about the flaw went viral on social media.

The report said the bank was investigating thousands of possible cases of check fraud.