JPMorgan sues customers over alleged TikTok-fueled check fraud – reports

JPMorgan Chase (NYSE:JPM) is filing lawsuits against four customers, accusing them of exploiting a brief technical glitch that went viral on TikTok to commit check fraud, a federal crime, by improperly withdrawing large sums of cash, according to several recent media reports.

The so-called glitch in August allowed customers to deposit large checks at ATMs and withdraw funds instantly, even if the checks later failed to clear, Reuters reported.

JPMorgan (NYSE:JPM), the U.S.’s largest bank, sued two individuals and two businesses in federal court on Monday, alleging they illegally kept over $661K after the checks they deposited were identified as counterfeit or forged.

All four suits claim the defendants breached their deposit agreements and demand repayment of the improperly withdrawn funds, along with additional costs, the article said.

JPMorgan (JPM) did not immediately respond to Seeking Alpha’s request for comment.