JPMorgan sues California man for defrauding them out of $116,063 through ATM glitch

CALIFORNIA – JP Morgan Chase filed a lawsuit, October 28, against a California man who used an ATM glitch to withdraw $116,063 after depositing two fraudulent checks.

The glitch, which went viral on TikTok in August, let customers deposit large checks in ATMs and withdraw funds immediately before the checks could clear.

JP Morgan says engaging in bank fraud is a crime.

Ill-gotten funds

According to the court document, on August 27 and 28, 2024, an individual deposited two fraudulent checks in the defendant’s Chase bank account in the amounts of $59,223.45 and $56,840.10 at an ATM.

After the checks were deposited, the defendant began transferring substantial amounts of those ill-gotten funds out of his account.

“The checks were eventually returned, resulting in a substantial negative balance. As of the date of filing, Defendant owes Chase $90,794.02,” said the court document.

Chase says their Global Security representatives attempted to contact the defendant regarding the counterfeit checks and his overdraft, but he failed to respond. Chase also sent a letter demanding return of the funds.

They say the defendant has not responded to any of their correspondence and has not returned the funds.

The bank seeks a judgment for the immediate payment of the overdraft funds and related fees, along with additional relief for the harm it sustained.

Check fraud is a criminal offense

Chase says that the defendant breached the contract of their Deposit Account Agreement (DAA).

“Among other things, 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,” including interest, as well as fees incurred for Chase’s efforts to collect any overdraft,” said the court document.

The civil lawsuit does not exclude the possibility of any criminal charges.

The charges for check fraud can be either a misdemeanor or a felony, depending on the circumstances of the case.

In California, if a bad check is written for $950 or more or the offender has a history of forgery or other fraud crimes, they may face felony charges. A felony conviction for writing bad checks can result in a three-year prison sentence and possible restitution to the victims.

Chase also filed lawsuits in federal courts in Houston and Miami.