JPMorgan Chase has filed four lawsuits in federal courts against customers who are allegedly connected with participating in the money glitch that went viral on TikTok in August.
The scheme instructed Chase customers to write a large check out to themselves, often in the tens of thousands of dollars, make a mobile deposit, then get to an ATM to withdraw the funds. Videos on TikTok and other social media platforms allegedly showed people celebrating after withdrawing thousands of dollars at ATM’s after depositing the bad checks. The glitch allowed funds to be withdrawn immediately before checks could clear, even if they later bounced. The bank norm is that only a fraction of a check could be made available immediately, until the entire value of the check clears, which is usually several days after the initial deposit.
Lawsuits were filed in Houston, Los Angeles and Miami, accusing two businesses and two individuals. Over $661,000 was fraudulently withdrawn from the banks.
Drew Pusateri, a Chase spokesperson said, “Fraud is a crime that impacts everyone and undermines trust in the banking system… We’re pursing 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.”
By - FZ
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