JP Morgan Chase is taking legal action against several customers over a viral social media scam, dubbed the “infinite money glitch,” which allegedly allowed them to withdraw large sums of money illegally.
The bank is suing two people and two businesses in Houston, Miami, and Los Angeles for their role in the scam. The action is looking to recover substantial funds, interest, and additional costs.
How the Fraud Worked
The so-called “infinite money glitch” made waves on TikTok. Viral videos detailed how customers could exploit a loophole in JP Morgan’s cheque-clearing process.
The fraudulent activity reportedly involved customers writing and depositing large cheques to themselves. They would then withdraw the funds before the bank had a chance to bounce the counterfeit cheques.
The scam took advantage of a common practice. This is where banks allow customers to withdraw a portion of a cheque’s value before it is officially cleared.
In this instance, JP Morgan’s system failed to recognize the fraudulent cheques in time, resulting in significant financial losses.
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A Viral TikTok Trend Turns Into a Legal Battle
TikTok videos outlining the glitch quickly gained popularity, leading many to attempt the fraudulent method.
This trend prompted JP Morgan Chase to act swiftly to close the loophole. The bank managed to do this a few days after the videos went viral, according to a report from the Wall Street Journal.
Legal Action and Financial Repercussions
JP Morgan’s lawsuits target two people and two businesses who allegedly exploited the glitch to withdraw substantial amounts.
The bank’s lawyers say the defendants collectively owe over $660,000 in fraudulently withdrawn funds.
One case involved a person wearing a mask depositing a counterfeit cheque of $335,000 and withdrawing the funds.
By the time the bank identified the cheque as counterfeit, the defendant still owed over $290,000 to JP Morgan Chase.
In its court filings, JP Morgan emphasized the importance of holding people accountable to maintain the integrity of the banking system.
The documents say:
“Chase takes its responsibility to combat fraud seriously and prioritizes protecting the firm and its customers to make the banking system safer.
“Part of that responsibility is to hold people accountable when they commit fraud against Chase and its customers. Simply put, engaging in bank fraud is a crime.”
Seeking Compensation Beyond the Withdrawn Funds
The lawsuits filed by JP Morgan are not limited to recovering the withdrawn funds.
The bank is also seeking to reclaim overdraft fees and interest on the unpaid amounts. It will also demand legal expenses, and any other damages incurred as a result of the fraudulent activities.
By pursuing these legal actions, the bank aims to set a clear precedent that fraudulent activities will not be tolerated.
The Broader Implications of Social Media’s Influence
The “infinite money glitch” highlights a growing challenge faced by financial institutions in the age of social media.
As platforms like TikTok continue to grow in popularity, they also inadvertently become channels for spreading illicit information, from money-making schemes to fraud tutorials.
The speed at which these trends can go viral poses significant risks for businesses, banks, and even unsuspecting users who may get caught up in illegal activities.
In this case, JP Morgan’s quick response to close the loophole shows the importance of real-time monitoring of social media trends and prompt action to address emerging threats.
However, the extent of the damage—thousands of possible cheque fraud incidents—indicates the considerable impact a viral trend can have on a major financial institution.
Could This Set a Legal Precedent?
The bank’s pursuit of legal action against those exploiting the glitch is not just an effort to recover its losses but also serves as a message to potential fraudsters.
Financial institutions may adopt stricter measures to identify and address similar loopholes in their systems proactively.
The lawsuits underscore the growing need for banks to educate their customers about the dangers of engaging in fraudulent activities promoted online.
A Cautionary Tale for Banks and Customers Alike
As the company navigates the fallout from the TikTok-driven cheque fraud, this incident serves as a wake-up call to the financial industry.
We live in an increasingly digital age, where trends can spread in a matter of minutes. Banks need to remain vigilant and proactive in identifying and closing vulnerabilities within their systems.
For customers, the “infinite money glitch” is a stark reminder that attempting to game the system often comes with severe consequences.
Engaging in fraud—even when presented as an innocent “glitch” on social media—carries significant legal risks and financial repercussions.
JP Morgan Chase’s lawsuits show it’s clear that accountability will be enforced. Banks will take strong actions to protect their institutions and the broader financial system.
