![](\"https:\/\/www.insurancejournal.com\/app\/uploads\/2018\/04\/JPMorgan-Chase-580x387.jpg\")
<\/p>\n![](\"https:\/\/www.insurancejournal.com\/app\/uploads\/2018\/04\/JPMorgan-Chase.jpg\")
<\/div>\nJPMorgan Chase, the largest U.S. bank, has begun suing customers for check fraud, saying they improperly withdrew funds by taking illegal advantage of a temporary technical glitch that went viral on TikTok.<\/p>\n
The glitch in late August let customers deposit big checks in ATMs and withdraw funds immediately before the checks could clear, even if the checks later bounced.<\/p>\n
Chase filed four lawsuits on Monday in federal courts in Los Angeles, Houston and Miami, accusing two individuals and two businesses of illegally retaining more than $661,000 after the checks they deposited were deemed counterfeit or forged.<\/p>\n
In the largest case, Chase said a Houston man still owes $290,939.47 after withdrawing over two days most of a $335,000 check that a masked man deposited in his account on Aug. 29. Chase said the check was rejected on Sept. 4.<\/p>\n
The defendants did not answer, did not accept, or could not immediately be reached with messages seeking comment on Monday.<\/p>\n
All four lawsuits accuse the defendants of violating their deposit agreements, and seek the return of improperly withdrawn funds plus other costs.<\/p>\n
JPMorgan, based in New York, said it is pursuing the cases and cooperating with law enforcement to ensure that people are held accountable.<\/p>\n
Last month, the Wall Street Journal said the bank was investigating thousands of possible check fraud incidents.<\/p>\n
\u201cFraud is a crime that impacts everyone and undermines trust in the banking system,\u201d JPMorgan spokesman Drew Pusateri said in a statement.<\/p>\n
Check fraud is a federal crime. Many banks including Chase let customers access some of the value of their checks until the checks clear.<\/p>\n
Topics<\/span> Lawsuits<\/a> Fraud<\/a> <\/p>\n<\/p><\/div>\n Was this article valuable?<\/p>\n<\/p><\/div>\n