**JPMorgan Pursues Legal Action Over ATM Fraud Scheme**

JPMorgan Chase is taking legal measures against customers who allegedly exploited a technical defect to illegally withdraw large sums from the bank’s ATMs. The issue, referred to online as the "infinite money glitch," emerged in August and allowed users to deposit fraudulent checks and draw out the funds before the bank could detect the deception. Social media posts by individuals bragging about their successful withdrawals contributed to the glitch gaining widespread attention.

The glitch was corrected within days, and JPMorgan initiated an investigation. On Monday, the bank filed lawsuits in several federal courts aiming at individuals who they claim profited the most from the scheme. The lawsuits underscore the bank’s effort to reclaim the withdrawn amounts and penalize the perpetrators. "Fraud is a crime that impacts everyone and undermines trust in the banking system," a JPMorgan spokesperson told CBS MoneyWatch. The spokesperson added that JPMorgan is working closely with law enforcement to ensure those who defrauded Chase and its customers face accountability.

One of the lawsuits, filed in the Southern District of Texas, describes how in August, a "masked man" deposited a counterfeit check for $335,000 into an ATM. The individual subsequently withdrew nearly the entire amount before the forgery was discovered, leading JPMorgan to claim the defendant owes $290,939.47.

The Nasdaq Global Financial Crime Report highlights that check fraud results in about $26.6 billion in annual losses, with 80% occurring in the Americas in 2023. On Monday, JPMorgan also filed lawsuits in Miami and the Central District of California. In California, JPMorgan alleges a defendant deposited two fake checks totaling $116,063.55 and began transferring considerable amounts of that money out of their account. The fraudulent checks were later returned, resulting in a large debit to the account, and JPMorgan claims the individual owes $90,794.02 in addition to unpaid overdraft fees.

JPMorgan's legal actions seek the return of the misappropriated funds along with interest, overdraft fees, and lawyers' fees, and in some cases, punitive damages are also being pursued according to the filed complaints.