JP Morgan Chase is targeting even more customers who allegedly used 'infinite money glitch' to steal cash, report says — here's how the scheme worked and what consumers should know

How the glitch worked

The "infinite money glitch" involved depositing fake checks into an ATM and withdrawing the money before the checks bounced. It's a form of check fraud.

This scheme became widely known in August after spreading quickly on social media. The core exploit was that the bank's system temporarily made funds from deposited checks available before the bank had time to verify and clear the check.

J.P. Morgan Chase has filed new lawsuits in multiple states, including Georgia, New York, Texas and Florida, against individuals accused of exploiting the glitch, per CNBC. The bank previously focused on larger cases in federal court but is now pursuing smaller cases in state courts.

"On August 29, 2024, a masked man deposited a check in Defendant's Chase bank account in the amount of $73,000," the bank said in a suit filed in Georgia on April 15, according to CNBC. The bank further claimed a series of cash withdrawals at two Chase branches in the state totaling $82,500 had been made before the check bounced after six days.

CNBC withheld the defendant's name, but says the lawsuit claims they owe the bank $57,8847.69 and have yet to comply with requests to return the funds.

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A warning about social media-fueled fraud

This isn't the first time a financial hack has gained popularity online, and it may not be the last. If there’s one lesson here, it’s this: taking advantage of a "glitch" doesn’t make it legal, and companies will come after you.

This case also highlights a broader truth in today’s finance world: viral "hacks" that promise fast cash almost always come with strings attached — whether legal, financial or ethical. If something seems like it breaks the rules, it probably does.

And if you’re ever tempted by a so-called infinite money trick, remember: the banks have lawyers. Lots of them.

It's always best to stay on the cautious side.