America's largest bank JPMorgan Chase is suing more customers across the country, here's the Big Why

JPMorgan Chase has filed lawsuits against more customers accused of exploiting a glitch last year. This glitch allegedly allowed these customers to withdraw funds from the bank using fraudulent checks before they bounced, a phenomenon dubbed the " infinite money glitch ." The bank has reportedly started suing more customers who allegedly stole amounts below $75,000. A report citing a source familiar with the matter claimed that these new lawsuits are being filed in state courts, a shift from the federal court filings the bank initiated last year. The "infinite money glitch," which gained widespread attention through viral social media videos in August 2024, enabled customers to withdraw the full value of a fraudulent check before it was flagged and returned.


What JP Morgan said about these customers in lawsuit

In a lawsuit filed in Gwinnett County, Georgia (seen by CNBC), JP Morgan said: “On August 29, 2024, a masked man deposited a check in Defendant’s Chase bank account in the amount of $73,000.00.”

Six days after the deposit, the check bounced following a series of cash withdrawals at two JP Morgan Chase branches in the state that totalled $82,500, the bank added.

The accused, whose name is being withheld by CNBC until she can respond, now owes the bank $57,847.69 and has not complied with requests to return the funds, as stated in the lawsuit.

In addition to the case in Georgia, the bank is preparing to file lawsuits in state venues in Miami, the Bronx, New York, and two Texas counties, the report added.

JP Morgan has reportedly examined thousands of potential cases and opted to pursue litigation in instances with the highest amounts and the most evident patterns of theft.

As per the report, the bank has also sent letters to over 1,000 customers since October 2024, requesting repayment of funds. The bank is targeting potential fraudsters who had withdrawn the largest sums, while some individuals even returned money voluntarily, the report noted.

The bank claimed that these lawsuits are separate from any potential criminal proceedings that federal and state law enforcement agencies may be working on.

In a statement, Drew Pusateri, a spokesman for JP Morgan, said: “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.”