JPMorgan Chase goes after TikTok users involved in money glitch

by | Nov 4, 2024 | E-commerce News

Remember in September when I reported on the Chase Money Glitch that went viral on TikTok?

Here's a quick reminder of what went down: Videos went viral on TikTok showcasing a “money glitch” at Chase. Viewers were told that if they deposited false checks in an ATM — that they wrote to themselves for an amount of money that they didn't actually have — and withdrew that money soon afterward, they would be able to cheat the system and take out a large sum of cash before the check bounced. Users posted hundreds of now-deleted videos showing their Chase accounts with negative amounts, sometimes up to $50,000.

Yes, as you're aware, what participants were actually doing was committing check fraud, and now JPMorgan Chase is pursuing legal action against clients involved in the scheme, demanding that defendants return the unlawfully accessed funds and cover the bank's legal fees and related expenses.

The bank said last month that it was investigating thousands of incidents of check fraud committed by TikTok users, but it hasn't yet disclosed the full extent of its losses. 

One lawsuit in Houston involves a “masked man” who deposited a $335,000 check into a defendant's account, yielding the highest outstanding balance among the cases, totaling $291,000. Another defendant in California owes about $90,000, while two Florida defendants owe $141,000 and $138,000. 

Drew Pusateri, a Chase spokesperson, said: 

“Fraud is a crime that affects everyone and erodes trust in the banking system. We’re pursuing 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.”

JPMorgan should donate any funds it recoups to America's public education system, so that we can teach future generations what check fraud is!

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