JPMorgan Chase Targets Customers in ‘Infinite Money Glitch’ Legal Action
Overview of the Legal Actions
This week, JPMorgan Chase initiated legal proceedings against multiple clients who allegedly exploited a TikTok trend known as the “infinite money glitch.” The bank asserts that its customers misappropriated funds through this scam, which they claim was misrepresented as a strategy for checking bank fraud.
Origins of the Trend
The “infinite money glitch” gained traction on TikTok last summer when customers discovered a loophole in Chase’s ATM system. Users were able to deposit checks, rapidly withdraw funds, and then leave before the checks bounced. Posts concerning the scheme gained massive visibility, accumulating over 7.5 million views on the platform, which led to long lines forming at Chase locations in New York as individuals attempted to capitalize on these fraudulent checks.
Immediate Response from JPMorgan Chase
Shortly after the trend emerged, JPMorgan took swift corrective measures. The bank locked affected accounts, issued negative balances, and began legal proceedings against clients who withdrew substantial sums ranging from $80,000 to $300,000. Recent reports indicate that the bank is also focusing on customers who withdrew amounts below $75,000, pursuing them in state courts.
Details of Ongoing Lawsuits
A lawsuit filed in Gwinnett County, Georgia, highlights a case where a client allegedly deposited a check for $73,000 and withdrew funds before the check was confirmed as invalid six days later. This client is now being pursued for $57,847.69. Similar legal actions have been observed in Miami, Florida, and counties in Texas, with Chase reportedly contacting over 1,000 customers demanding repayment for funds withdrawn under the guise of the “infinite money glitch.”
Rising Incidents of Check Fraud
The situation is exacerbated by alarming statistics from the US Treasury Department, which report that check fraud has surged by 385% since the pandemic’s onset. This trend has raised concerns among financial institutions regarding the vulnerabilities in their banking systems.
Other TikTok Financial Trends
While the “infinite money glitch” demonstrates the darker side of social media trends, platforms like TikTok have also fostered positive financial habits. Earlier this year, users participated in a trend centered around “paying my debts,” which encouraged community support for debt repayment through shared experiences and insights.