JPMorgan Chase on Monday launched lawsuits against clients accused of using a viral technical glitch on TikTok to rip off thousands of dollars.
The glitch in late August allowed customers to deposit large checks at ATMs and withdraw cash before the checks cleared, even if the checks later bounced.
The nation’s largest lender filed complaints against two individuals and two businesses in Houston, Miami and Los Angeles alleging they illegally owed more than $661,000.
In the biggest case, a masked man on his account Aug. A Houston man owes $290,939.47 more than two days after receiving a $335,000 check he deposited on the 29th.
The defendants did not respond, decline or could not immediately be reached for messages seeking comment on Monday.
Civil suits do not exclude or end the possibility of any criminal charges.
All four lawsuits allege the defendants breached their deposit agreements and are required to recover improperly withdrawn funds and other expenses.
JPMorgan, based in New York, said it would pursue lawsuits and cooperate with law enforcement to ensure people are held accountable.
“Fraud is a crime that affects everyone and undermines trust in the banking system,” JP Morgan spokesman Drew Pusateri said in a statement.
Check fraud is a federal crime. Many banks, including JP Morgan, allow customers to access some of the value of their checks until the checks clear.
Last month, the Wall Street Journal reported that the bank was investigating thousands of cases of check fraud.
Paper checks are no longer accepted in most European countries. For example, the UK and the Netherlands got rid of them two decades ago.
However, despite the increased use of digital technology such as ApplePay, they remain a popular form of payment in the United States.
According to Nasdaq’s Global Financial Crimes Report, $26.6 billion was lost worldwide last year due to checks.
