In response, JPMorgan Chase has filed lawsuits on the behalf of over a dozen clients. They claim these people took advantage of a loophole to cash checks and withdraw money before the checks could bounce. One of those buzzworthy gaming topics was the “infinite money glitch” from last year. In late August, videos demonstrating the exploit took over social media platforms like TikTok and X (previously known as Twitter).
The bank’s current lawsuits are targeting those who supposedly cashed out figures under $75,000. So far, they’ve brought claims in state forums—in Miami, Florida, the Bronx, New York, and Harris and El Paso counties, Texas. The legal actions come after JPMorgan Chase sent letters to over 1,000 customers demanding repayment of the funds since October.
The glitch let consumers withdraw the full value of a check before their deposit could be undone. In one extreme example, a customer emptied their account across two Chase branches totaling $82,500. Six days later, that same check for $73,000 bounced. As of today, this customer is current on the loan and owes JPMorgan Chase $57,847.69 but has ignored demands to return the money.
We know JPMorgan Chase is listening intently. Further, they are curbing cases of fraud and working hand in hand with law enforcement to address these fraudulent attacks. Drew Pusateri, a spokesperson for the bank, stated, “We’re still investigating cases of fraud and cooperating with law enforcement and we’ll do that for as long as it takes to hold fraudsters accountable.”
As part of the bank’s strategy, the bank is countering bankruptcy filings submitted by some of the customers participating in the fraud. Pusateri addressed each with the common and legitimate reasons for utilizing bankruptcy protections. He was absolutely clear that cancellation of debts accumulated by fraud is not it.
In its pursuit of justice, JPMorgan Chase has sifted through thousands of potential cases to identify those with the clearest patterns of theft. Rather than chase smaller sums, the bank intends to direct its litigation strategy at bigger cases that show greater losses are at stake.
A specific instance highlights the bank’s resolve: in one lawsuit, the accused customer engaged in a series of cash withdrawals totaling $82,500 prior to a bounced check. As part of its legal strategy, JPMorgan Chase has requested additional time from the court to respond to the customer’s bankruptcy discharge attempt.
The implications of these lawsuits extend beyond the individuals directly involved, as they represent a broader issue concerning accountability in financial transactions and the potential consequences of exploiting banking systems.
In many ways, JPMorgan Chase is leading the pack in walking this tightrope. The bank hopes to further cement itself in that space as a robust bulwark against bad, fraudulent, corporate practices.
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