JPMorgan Chase Suing Customers Over TikTok ATM Glitch Abuse
- JPMorgan Chase initiated legal proceedings against individuals for exploiting a system glitch to withdraw funds they did not have in their accounts.
- The glitch became widely known through a TikTok viral post, with users engaging in this illegal activity, treated as check fraud.
- The bank's lawsuits, filed in Los Angeles, Houston, and Miami, highlight the serious consequences of following dubious financial advice online.
In August 2024, JPMorgan Chase Bank, the largest US bank by market capitalization, began taking legal action against individuals who exploited a system glitch to withdraw more funds than they had in their accounts. This glitch allowed people to write checks to themselves, deposit them at ATMs, and instantly access funds that technically did not belong to them, essentially committing check fraud. The bank became aware of the fraudulent activity after it circulated on TikTok as a viral 'money hack', leading to investigations into thousands of cases. Chase has since filed lawsuits in federal courts in Los Angeles, Houston, and Miami, targeting both individuals and businesses, specifically those accused of withdrawing over $661,000 through this mechanism. As the bank actively pursues civil cases, which may also result in criminal charges, it stresses the importance of verifying financial advice obtained through social media. The actions take place amid growing scrutiny of how platforms like TikTok can influence financial behavior and the consequences of following unverified advice. Chase is collaborating with law enforcement to address this issue, reinforcing the message that financial tips requiring no effort often come with legal risks and repercussions.