On October 28, JP Morgan Chase sued a man from California who took out $116,063 using a glitch in an ATM after depositing two fake checks.
The bug, which became popular on TikTok in August, let people put big checks into ATMs and get cash right away, before the checks could clear.
Based on JP Morgan, bank fraud is a crime.
Ill-gotten funds
The court document says that on August 27 and 28, 2024, someone used an ATM to deposit two fake checks for $59,223.45 and $56,840.10 into the defendant’s Chase bank account.
As soon as the checks were cashed, the defendant started moving large amounts of the stolen money out of his account.
“In the end, the checks were returned, leaving a big negative balance.” The court paper said, “Defendant owes Chase $90,794.02 as of the date of filing.”
Chase says that their Global Security staff tried to get in touch with the defendant about the fake checks and his overdraft, but he did not answer. Chase also sent a letter asking for the money to be returned.
They say that the defendant has not answered any of their letters and has not given them the money back.
The bank wants a court order to pay back the overdraft funds and fees right away, as well as more money to make up for the damage it suffered.
Check fraud is a criminal offense
Chase claims the defendant broke the terms of their Deposit Account Agreement (DAA).
“Defendant agreed to be responsible for any amounts owed on the Account and to “immediately pay the amount of any overdraft along with any fees that apply,” the court document said.
These fees include interest and the costs Chase incurred in trying to collect any overdraft.
The civil lawsuit does not mean that there will not be any criminal charges.
No matter what the situation is, check fraud can be charged as either a misdemeanor or a felony.
Bad checks for $950 or more can get you felony charges in California. If the person writing the check has a history of forgery or other fraud crimes, they could also face other charges.
Writing bad checks is a felony that can get you three years in prison and may require you to pay back the people who were harmed.
Chase also took his case to federal courts in Miami and Houston.
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