Americans who cashed in on ‘free money’ hack amid major Chase glitch get rude shock
About two months after Americans posted wild videos touting the money they made from the Chase banking error, many of them are being hit with federal lawsuits.
JPMorgan Chase, America’s largest bank, has begun charging people who took advantage of a momentary glitch in its system that allowed them to illegally withdraw money from ATMs using counterfeit checks.
The “infinite money hack,” as many started calling it, became a viral trend on social media in late August and early September. Bank customers reported seeing excess money in their account balances and being able to withdraw cash from ATMs before their checks cleared.
JPMorgan quickly recovered these ill-gotten gains, leading to an influx of panicked opportunists who suffered the consequences of thousands in the negative bank balance.
One of the most serious cases, according to a lawsuit filed in Texas, involves a Houston man who used a masked accomplice to deposit a counterfeit check for $335,000 at an ATM. JPMorgan claims this man still owes $290,939.47.
Basically, the Chase Bank glitch involved people depositing checks worth more than they had in their checking account. The glitch allowed them to withdraw stacks of cash before the fraudulent checks bounced
“On August 29, 2024, a masked man deposited a check in the amount of $335,000 into Defendant’s Chase bank account,” the bank said in the Texas filing. “After the check was deposited, defendant began withdrawing the vast majority of the ill-gotten funds.”
JPMorgan filed another lawsuit in California, accusing a man of submitting two fraudulent checks to his bank account, one worth $59,223.45 and the other worth $56,840.10.
The bank claims they are owed more than $90,000.
In a third case, filed in Florida, JPMorgan said another fraudulent checking scheme cost them more than $141,000.
JPMorgan, America’s largest bank by assets, began investigating thousands of cases of people taking advantage of the “money glitch,” but the bank has not disclosed the total losses. CNBC reported.
Most of the cases under investigation involve much smaller amounts of money stolen, according to people with knowledge of the situation CNBC spoke to.
One of the most recognizable videos to emerge from this short-lived trend showed a man walking out of a Chase branch in Yonkers, New York and cheering as he fanned a stack of cash.
Later in the video, they drive through the streets with hundred dollar bills in their hands and their Chase debit cards in their mouths.
In each of these cases, JPMorgan claimed that they contacted the alleged thieves, but were not reimbursed for the bad checks.
According to the three complaints viewed by DailyMail.com, Chase is demanding the return of the stolen money with interest and overdraft fees. The bank also wants to be awarded attorneys’ fees.
“Fraud is a crime that affects everyone and undermines confidence in the banking system,” JPMorgan spokesman Drew Pusateri told CNBC. “We are prosecuting these cases and actively working with law enforcement to ensure that if anyone commits fraud against Chase and its customers, he or she is held accountable.”
DailyMail.com approached JPMorgan for comment.
In the days following the social media frenzy, which saw people cheering outside Chase branches with wads of cash, experts and everyday people were quick to tell ATM hackers that they were in for a rude awakening.
Jim Wang, a popular financial educator on TikTok, posted his own take on the Chase glitch mania and warned people that they will face serious consequences for what they did.
Jim Wang, a popular financial educator on TikTok, posted his own take on the Chase glitch mania and warned people that they will face serious consequences for what they did
Multiple images and videos emerged of dozens of people lining up outside Chase bank branches, reportedly hoping to take advantage of the money glitch
“In the case of this glitch, it was simply check fraud. If you do something like that, you will be in big trouble,” he said.
“Just because money shows up in your account doesn’t mean it’s literally yours,” he said. “If you spend it and are forced to pay it back, you’re going to have to figure out a way to pay it back.”
One of the most recognizable videos to emerge from this short-lived trend showed a man walking out of a Chase branch in Yonkers, New York, cheering as he fanned a stack of cash.
Three of his friends surrounded him as they all celebrated their ill-gotten gains.
Then they drive through the streets hanging out of their cars, holding hundred-dollar bills in their hands and beaming with their Chase debit cards in their mouths.
Other videos showed dozens of people lining up outside Chase branches, reportedly hoping to exploit the alleged outage.
Both people showed their negative account balances after allegedly being involved in the Chase money error
The euphoria was short-lived, however, as people started sharing screenshots of their Chase accounts with scarily large negative balances.
One visibly distressed man showed outstanding deductions from his account balance, one for $31,000 and another for more than $7,000. Both were due to an ATM or deposit error.
“F**k man,” he said, rubbing his face. “They actually told me to listen in, it would be done the next day, but look at my bill.”
Another person showed his account nearly $11,000 in the red after participating in the trend.
Although JPMorgan has filed three lawsuits in federal court to date, check fraud can also be prosecuted at the state level.
The maximum penalty for grand thefts of money from financial institutions is a $1 million fine and 30 years in prison.