Payments

Chase sues 4 customers over TikTok ATM fraud trend

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October 29, 2024

JPMorgan Chase is pursuing legal action against four individuals who allegedly committed fraud as part of a TikTok trend. In this trend, content creators encouraged watchers to take advantage of a "glitch" at ATMs by depositing large checks and then withdrawing cash before the checks bounced, according to a report by CNN Business.

This trend takes advantage of a banking practice of proving customers access to a portion of a check before it clears. Chase is currently suing individuals who collectively owe the bank almost $662,000. One man in Houston is being sued for $291,000 after allegedly depositing a $335,000 check.

Chase said it has reached to all of these clients demanding that they pay for the overdraft and fees, but none have done so.

"Fraud is a crime that impacts everyone and undermines trust in the banking system," Drew Pusateri, a Chase spokesperson, said in the report. "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."