JPMorgan Chase sues customers over viral ATM withdrawal scam

JPMorgan Chase has begun suing customers who stole hundreds of thousands of dollars by exploiting a technical flaw that allowed them to cash fraudulent checks and then quickly withdraw large amounts of cash from ATMs.

The “Infinite Money” bug went viral on TikTok and other social media platforms in late August, showing people depositing checks and then immediately withdrawing “free” money before the check cleared.

On Monday, the bank filed lawsuits in three federal courts against two people and two companies that collectively withdrew nearly $662,000.

“Fraud is a crime that affects everyone and undermines trust in the banking system,” Chase spokesman Drew Pusateri said in a statement. “We are pursuing these cases and are actively working with law enforcement to ensure that anyone who defrauds Chase and its customers is held accountable.”

Lawsuits in California, Florida, Texas

A case filed in Houston alleges a “masked man” deposited a $335,000 check into the defendant's bank account at an ATM. The man then immediately began withdrawing money – a total of $290,947.39 – before the check was returned as a counterfeit.

In a lawsuit filed in the Central District of California, JPMorgan Chase alleges that “on August 27 and 28, 2024, an individual deposited two fraudulent checks” totaling more than $116,063.55 into the defendant's bank account, which then I immediately transferred more than $90,000 to the account.

Two separate lawsuits were filed in Miami against companies called In and Out Appliances and Riskboss Musiq. These companies are said to owe $138,680.91 and $141,295.84, respectively.

In each of the lawsuits, JPMorgan Chase says it contacted the defendants and asked them to “pay the amount of any overdraft and any applicable fees,” but the defendants failed to do so.

“While the fraud methods have evolved over time, the core intent of exploitation and deception remains unchanged,” the bank said in all four lawsuits.

Max Hauptman is a trends reporter for USA TODAY. He can be reached at [email protected]

Lawsuits in California, Florida, Texas

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