What happened
In August 2024, videos on social media explained a so-called 'infinite money glitch' tied to ATM malfunctions at Chase. Fortune reported that a customer could write a fake check, deposit it at an ATM, and withdraw cash over about a week because some deposited funds became available immediately, before the check bounced. The practice, check-kiting, is illegal.
JPMorgan responded in court. In October 2024 it filed four federal lawsuits seeking about $660,000, and by April 2025 had won all four and recouped about $580,000, with figures not final in every case. It then filed five state-level suits against customers who allegedly took $75,000 or less, in New York, Florida, Georgia and Texas. One Georgia filing alleged a $73,000 check bounced six days after deposit, after $82,000 of withdrawals.
The bank said it was investigating fraud and cooperating with law enforcement, and had sent more than 1,000 letters asking customers to repay. It stressed that bank fraud is a crime. Fortune noted Bank of Ireland customers exploited a different ATM glitch in August 2023.
Why it happened
ATM malfunctions made part of a deposited check's value available immediately, before the check could bounce.
Social media spread the method quickly, so many customers tried it within days.
The bank had to recover cash after the fact through letters and lawsuits, since the funds had already been withdrawn.
The lesson
A fraud loophole that goes viral scales in days. Fast funds availability on unverified deposits needs a control that works before the posts, not lawsuits after.
Aftermath
By April 2025 Chase had won four federal suits and was pursuing more at state level, with the bank saying it would hold fraudsters accountable for as long as it takes. A lawyer told Fortune that penalties for check fraud vary by state and amount, and can be steep.
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