The American banking giant JP Morgan Chase has filed a lawsuit against customers who allegedly took advantage of the glitch by illegally withdrawing thousands of dollars from its ATMs.
The “infinite money glitch,” as it was called on TikTok, allowed bank customers to write a check for a large amount, deposit it, and then withdraw the funds before the check clears.
Two individuals and two companies have filed lawsuits in Houston, Miami, and Los Angeles.
They are being asked to return the money with interest, pay the relevant overdraft fees, and cover legal fees and other costs incurred by the bank.
“Chase takes its responsibility to fight fraud seriously and prioritizes protecting the firm and its customers to make the banking system safer,” the bank said in a statement to the court.
“Part of that responsibility is bringing to justice people who commit fraud against Chase and its customers. Simply put, participating in bank fraud is a crime.”
In one case, court documents describe how on August 29, a masked man deposited a check into the defendant’s Chase bank account for $335,000 (£258,300).
Court documents say that the defendant then began withdrawing money.
Ultimately, the check was returned as counterfeit, but the defendant still owed the bank more than $290,000, according to the case file.
According to JP Morgan Chase’s lawyers, the total amount of money kept by the defendants in the four lawsuits was more than $660,000.
Banks in the United States typically allow customers to withdraw only a small portion of the value of a check before it is paid.
Last month, the Wall Street Journal reported that JP Morgan Chase had closed this loophole a few days after several videos appeared on social media highlighting the problem.
The report said that the bank was investigating thousands of possible cases of check fraud.
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