Plus, JPMorgan Chase just started suing customers who embezzled money with the viral “infinite money glitch.” Indeed, this scheme became widely known only last year. That’s exactly what the bank is doing by actively pursuing lawsuits throughout several state courts. These are sites in Miami, Florida, the Bronx, New York, and two Texas counties. On one hand, JPMorgan is the one actively pursuing these lawsuits to recover money. They feel like they are the victims of a fraudulent exploitation of their banking system.
Value of the “infinite money glitch,” which let customers withdraw the total value of a bad check before it had time to bounce. The phenomenon initially went viral in late-August. When videos of the scheme went viral across social media, immediate backlash began to form a maelstrom of disaster for the bank. In response, JPMorgan began reviewing thousands of potential fraud cases and decided to pursue litigation against those who withdrew the largest amounts with clear evidence of theft.
Since October, the bank has sent letters to over 1,000 customers, demanding repayment of funds obtained through this glitch. Early reports suggested that some people returned the money on their own after finding out what JPMorgan was doing to hopefully make things right.
This means that JPMorgan is now actively litigating lawsuits involving less than $75,000. The bank’s focus has now shifted towards customers it accuses of engaging in this kind of fraudulent activity. Further, the bank is bringing its complaints in state court as opposed to federal forum, which could make its recovery easier and quicker.
Drew Pusateri, a spokesperson for JPMorgan Chase, stated, “We’re still investigating cases of fraud and cooperating with law enforcement — and we’ll do that for as long as it takes to hold fraudsters accountable.” Beyond the compliance aspect, this statement emphasizes the bank’s priority on preventing fraud and protecting the bank’s bottom line.
Additionally, JPMorgan plans to contest bankruptcy filings from all the fraudsters they’ve been fighting against. The bank claims that these thefts have made it the holder of an unsecured claim. It is aggressively pursuing more time to challenge a client’s attempt to eliminate liabilities in federal bankruptcy court. Another instance is a customer who currently owes the bank $57,847.69 and has failed to meet all of the appropriate bank callings on the loan. This person allegedly withdrew $82,500 in cash at two different Chase bank branches.
Pusateri also noted the other impact of bankruptcy protections. “There are genuine and important reasons people use bankruptcy protections,” he noted, adding, “Getting rid of debts you accumulated through fraud isn’t one of them.” This statement reflects the bank’s position that individuals should not be able to evade financial responsibilities incurred through fraudulent means.
JPMorgan Chase is monitoring the situation closely as the legal process continues. They are just producing funds to reclaim money lost from the infinite money glitch. The bank’s approach sends a clear message on its strong opposition to fraud and continued prioritization of protecting its operations and interests.