Customers accused of capitalizing on JPMorgan Chase's alleged technical glitch now face a lawsuit by the financial institution.
JPMorgan Chase Cracks Down on Check Glitch Fraudsters
JPMorgan Chase, one of the world's largest banks, has taken legal action against customers who exploited a viral ATM check processing glitch. The glitch, discovered and promoted by TikTok users in late August, allowed customers to deposit outsize checks in ATMs and withdraw funds before the checks cleared.
In Texas, Timipah Ikemi is being sued by Chase after allegedly retaining $290,939.49 from a fraudulent $335,000 check deposit. Similar lawsuits have been filed against customers in California, Florida, and other states.
In California, Micah Reed allegedly owes JPMorgan Chase $90,794.02 after depositing two fraudulent checks and withdrawing much of the money before the checks bounced. In Florida, In and Out Appliances allegedly owes JPMorgan Chase $138,680.91 for the same reasons as Riskboss Musiq, who allegedly owes the bank $141,295.84 following a fraudulent check deposit and failure to return withdrawn funds.
Mark Guthner, an associate professor of financial practice at Rutgers University, stated that the people who did this are in trouble. "If one takes money out of a bank and commits fraud, they are required to return the money," Guthner said.
The banking law is clear about the need to return the money and the bank's role in pursuing the individuals in court. Court documents state that JPMorgan Chase works diligently to combat bank fraud in an increasingly more common environment.
The bank's lawsuits against customers involve cases of bank and wire fraud. The core intent of fraud, according to Chase's attorneys, remains unchanged despite evolving methods.
On Monday, Chase filed four lawsuits against customers who cumulatively kept more than $660,000 from the scheme. The defendants could not be reached by Bloomberg Law or Reuters.
JPMorgan Chase prides itself on its efforts to protect customers against fraudsters. The people who exploited the check glitch could face criminal charges, potential jail time, and fines. The bank's legal actions against customers who exploited the check glitch are based on the principle of combating fraud and protecting its customers.
The glitch has since been fixed, but the incident serves as a reminder to be vigilant against fraudulent activities. As Guthner put it, "This is a clear case of fraud, and those who engaged in it should expect to face consequences."
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