JPMorgan Chase Pursues Legal Action Over Viral ATM Exploitation

JPMorgan Chase files federal lawsuits against customers who exploited viral “infinite money glitch,” seeking to recover over $661,000 in fraudulent withdrawals while investigating thousands of potential cases.

Al Landes Avatar
Al Landes Avatar

By

Our editorial process is built on human expertise, ensuring that every article is reliable and trustworthy. AI helps us shape our content to be as accurate and engaging as possible.
Learn more about our commitment to integrity in our Code of Ethics.

Image credit: Wikimedia

Key Takeaways

  • Multiple federal lawsuits target largest withdrawals
  • Social media amplified exploitation
  • Bank investigating thousands of potential cases

Why it matters: JPMorgan Chase has filed multiple federal lawsuits against customers who exploited a technical vulnerability in their ATM system, known as the “infinite money glitch,” which allowed individuals to withdraw cash from counterfeit check deposits before verification. This incident highlights the ongoing challenge banks face in balancing convenience with security.

The Scheme: The exploitation gained widespread attention through social media platforms during the summer of 2024, with users demonstrating how to withdraw funds from deposited fake checks before they bounced.

  • Individual withdrawals reached up to $290,000
  • Total damages sought exceed $661,000

Legal Response: CNBC reports that the bank has initiated lawsuits in federal courts across Houston, Los Angeles, and Miami, targeting customers who withdrew the largest amounts. These cases represent just the first wave in JPMorgan’s broader investigation into thousands of potential fraud cases.

  • Four initial federal lawsuits were filed
  • Bank seeking repayment plus damages (CBS)

Broader Impact: This incident occurs against the backdrop of rising check fraud, which costs U.S. banks approximately $26.6 billion annually. JPMorgan has since patched the vulnerability but continues to investigate additional cases.

  • Bank closed loophole within days of discovery
  • Thousands of cases under investigation

Share this

At Gadget Review, our guides, reviews, and news are driven by thorough human expertise and use our Trust Rating system and the True Score. AI assists in refining our editorial process, ensuring that every article is engaging, clear and succinct. See how we write our content here →