JPMorgan Chase Files Lawsuits Over ATM Scam: Who’s to Blame?
JPMorgan Chase Targets Fraudsters in Federal Lawsuits
JPMorgan Chase says it filed four lawsuits in federal courts on Monday against customers who allegedly stole tens of thousands of dollars from the bank. This came after a glitch in the bank’s ATM system was exposed and went viral before Labor Day.
The slick hack involved customers writing themselves large checks and withdrawing the funds before the checks cleared. Chase has said it is pursuing the cases as the bank’s system vulnerabilities have been widely shared on social media, including TikTok and other platforms.
Details of the Fraudulent Actions
The complaints allege that several account holders deposited large checks into their accounts via ATM and promptly withdrew the vast majority of the funds. When the checks later bounced, the account holders were left with substantial negative balances.
The bank is particularly targeting two cases in the Southern District of Texas and California. In one instance, a depositor is claimed to have deposited a $335,000 check and withdrawn a significant portion, leaving Chase with a balance of $290,939.47 to recover. Another case involves a depositor who deposited two large checks for over $50,000 each, resulting in a $90,794.02 debt to Chase.
Additionally, the Southern District of Florida sees lawsuits against separate businesses—allegedly involved in the aforementioned scheme—that owe Chase around $140,000 each.
Chase’s Stance on the Scam and Its Impact
Drew Pusateri, a Chase spokesperson, asserted that, "Fraud is a crime that impacts everyone and undermines trust in the banking system." The bank spokesperson further stated, "We’re pursuing these cases and actively cooperating with law enforcement to make sure if someone is committing fraud against Chase and its customers, they’re held accountable."
This series of lawsuits comes amidst broader concerns in the industry about emerging scams and vulnerabilities. A recent report from VISA highlighted the increasing frequency and sophistication of these types of fraudulent activities, targeting both consumers and travelers.
Visuals: Images of ScamsCOMMENTS
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(Tim Clayton/Corbis via Getty Images)
(Gary Hershorn/Getty Images)
Stay Informed: Understand Vulnerabilities and Fraud Scams
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Call to Action: Get Alerts About Financial Scams
Stay vigilant and handle your banking transactions with caution, ensuring that you report any suspected fraud immediately to Chase and other relevant authorities. Additionally, consider subscribing to financial alerts and newsletters for real-time information on emerging scams and scam protection tips.
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