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JPMorgan Chase has initiated legal actions against numerous customers this week, accusing them of engaging in theft by exploiting an “infinite money glitch” that gained popularity on TikTok. The bank asserts that this trend is a manifestation of check fraud.
The phenomenon known as the “infinite money glitch” surfaced last summer when account holders at Chase discovered they could deposit checks at ATMs for large sums and withdraw the money before the checks were returned. An August social media post about this illicit practice gained over 7.5 million views on X. The trend quickly escalated, leading to crowds at Chase branches in New York, as individuals sought to take advantage of these fraudulent checks.
JPMorgan corrected the issue within a few days, freezing accounts and assigning negative balances to those involved. By October, the bank had begun legal proceedings against those who withdrew significant amounts, with figures between $80,000 and $300,000, filing suits in federal court. Recently, the bank has expanded its lawsuits to include customers who withdrew amounts less than $75,000, now pursuing these cases in state courts, according to CNBC.
One of the recent lawsuits was filed on Tuesday in Gwinnett County, Georgia, where Chase accused a customer of depositing a check for $73,000 and withdrawing the funds before the check could clear, which occurred six days later.
The lawsuit claims that the customer now owes Chase $57,847.69 and has yet to repay the amount.
In addition, Chase has lodged similar lawsuits against customers in locations such as Miami, Florida; The Bronx, New York; and two Texas counties, as reported by CNBC. Since the outset of this issue in October, the bank has dispatched letters to over 1,000 customers, demanding repayment for the money withdrawn as part of the “infinite money glitch” scheme.
As noted by the U.S. Department of the Treasury, incidents of check fraud have surged by 385% since the pandemic began.
Amidst this controversy surrounding banking fraud, TikTok has been home to various other financial trends. In June, users engaged in the “pay off my debt” challenge, collaborating through video shares to generate funds via the platform to assist each other in settling debts.
Related: JPMorgan Is Suing Customers Over ‘Infinite Money Glitch’ TikTok Trend
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