Chase Customers, Including 'Masked Man,' Accused of Using Viral 'Money Glitch' to Steal $660K: Suits

Mar. 15, 2025

JP Morgan Chase & Co. signage at the company’s offices in New York.Photo:Michael Nagle/Bloomberg via Getty

Michael Nagle/Bloomberg via Getty

JPMorgan Chase is suing customers for alleged check fraud, claiming that they stole hundreds of thousands of dollarsfollowing a technical “glitch” that went viral on TikTok.

The banking giant filed four lawsuits in federal courts in California, Florida and Texas on Monday, Oct. 28,Reutersreported. It accused two people and two businesses of keeping over $661,000 after they allegedly deposited checks that were counterfeit or forged.

The “glitch,” which occurred in August, according to Reuters andNBC News, allowed customers to deposit large checks in ATMs and then quickly withdraw the funds before the checks could clear or bounce — a trend that became popular on social media,CNBCreported.

“After the check was deposited, [the customer] began withdrawing the vast majority of the ill-gotten funds in short succession,” according to the complaint. “The check was eventually returned as counterfeit, resulting in a substantial negative balance. As of the date of filing, [he] owes Chase $290,939.47.”

JPMorgan Chase said in the complaint that it had contacted the customer about the counterfeit check and the overdraft, but he didn’t respond. As a result, the bank is seeking a judgment calling for the immediate payment of the overdraft funds and fees.

“Specifically, three days later, Defendant made an in-person transfer of $110,000.00 to a third party,” read the complaint. “Defendant made three more in-person withdrawals that same day from the same branch for $5,000.00, $9,900.00, and $10,000.00. After making yet additional withdrawals, Defendant essentially depleted its account of all funds deposited from the fraudulent Check.” The bank said in the complaint that the defendant now owed $141,295.84.

In another similar case also filed in Florida, JPMorgan Chase alleged in a complaint that an individual deposited two checks in the amount of  $75,000.00 and $245,999.12 at a Chase ATM on Aug. 28 and 29. That individual then “began transferring substantial amounts of those ill-gotten funds out of its account.”

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“The checks were eventually returned as counterfeit, resulting in a substantial negative balance,” the complaint added. As of the date of filing, Defendant owes Chase $138,680.91.”

Like in the Texas case, JPMorgan Chase is seeking payment of the overdraft funds and other related fees from the defendants in the California and Florida cases, according to the complaints.

JPMorgan is investigating numerous cases linked to the “infinite money glitch.”

In a statement shared with PEOPLE on Wednesday, Oct. 30, a spokesperson for JPMorgan Chase said of the bank’s litigation: “Fraud is a crime that impacts everyone and undermines trust in the banking system. We’re pursuing these cases and actively cooperating with law enforcement to make sure if someone is committing fraud against Chase and its customers, they’re held accountable.”

PEOPLE reached out to three of the four defendants named in the complaints.

source: people.com