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The instant money scam has grown into a federal case.
The largest US bank, JPMorgan Chase, has launched a prosecution of fraudsters who illegally cashed out large amounts through ATMs, taking advantage of a vulnerability in the system.
The situation went viral on social networks X and TikTok in the summer, after attackers learned to use a technical glitch to deposit fake checks and instantly withdraw money before the checks were declined. Since the end of August, videos have begun to appear on the Internet in which people show how they withdrew large sums of money from Chase ATMs shortly after making invalid checks.
Usually, banks provide access to only a part of the check amount before it is fully processed, which takes several days. JPMorgan reports that it eliminated the vulnerability a few days after discovery.
A spokesperson for the bank, while declining to disclose specific details about the number of such transactions and the exact amount of damages, confirmed that four lawsuits had been filed in federal courts in Texas, Florida and California. The Bank actively cooperates with law enforcement agencies to bring the attackers to justice and restore customer trust.
One of the cases involves a man who owed JPMorgan nearly $291,000 after an accomplice deposited a fake check for $335,000 into the man's account, after which the client began actively withdrawing illegally obtained funds. In other cases, the defendants are In and Out Appliances LLC and Riskboss Musiq LLC. According to CNBC, the damage from these cases ranges from $80,000 to $141,000.
Most of the cases considered by the bank are related to smaller amounts, but in each of them, the bank did not receive a refund, which violates the deposit agreement signed by customers when opening an account.
In the lawsuits, JPMorgan seeks a refund with interest, overage penalties and legal costs, as well as compensation in the form of punitive damages in some cases. Civil cases may be only the beginning of a wave of lawsuits aimed at forcing customers to repay debts and demonstrating the bank's principled position on combating fraud. Priority was given to cases with large sums and alleged links to criminal groups.
The civil lawsuits do not rule out possible criminal prosecution - JPMorgan has passed information on a number of cases to law enforcement agencies across the country.
Source
The largest US bank, JPMorgan Chase, has launched a prosecution of fraudsters who illegally cashed out large amounts through ATMs, taking advantage of a vulnerability in the system.
The situation went viral on social networks X and TikTok in the summer, after attackers learned to use a technical glitch to deposit fake checks and instantly withdraw money before the checks were declined. Since the end of August, videos have begun to appear on the Internet in which people show how they withdrew large sums of money from Chase ATMs shortly after making invalid checks.
Usually, banks provide access to only a part of the check amount before it is fully processed, which takes several days. JPMorgan reports that it eliminated the vulnerability a few days after discovery.
A spokesperson for the bank, while declining to disclose specific details about the number of such transactions and the exact amount of damages, confirmed that four lawsuits had been filed in federal courts in Texas, Florida and California. The Bank actively cooperates with law enforcement agencies to bring the attackers to justice and restore customer trust.
One of the cases involves a man who owed JPMorgan nearly $291,000 after an accomplice deposited a fake check for $335,000 into the man's account, after which the client began actively withdrawing illegally obtained funds. In other cases, the defendants are In and Out Appliances LLC and Riskboss Musiq LLC. According to CNBC, the damage from these cases ranges from $80,000 to $141,000.
Most of the cases considered by the bank are related to smaller amounts, but in each of them, the bank did not receive a refund, which violates the deposit agreement signed by customers when opening an account.
In the lawsuits, JPMorgan seeks a refund with interest, overage penalties and legal costs, as well as compensation in the form of punitive damages in some cases. Civil cases may be only the beginning of a wave of lawsuits aimed at forcing customers to repay debts and demonstrating the bank's principled position on combating fraud. Priority was given to cases with large sums and alleged links to criminal groups.
The civil lawsuits do not rule out possible criminal prosecution - JPMorgan has passed information on a number of cases to law enforcement agencies across the country.
Source
