The Reported Resurgence of TikTok's "Endless Funds Trick" Puts Manipulators at Risk
Various individuals exploited an popular ATM glitch that gained notoriety on TikTok this year, utilizing it to swindle huge sums, ranging from hundreds of thousands to JPMorgan Chase. As per a recent report by CNBC, the bank has initiated legal action against several of these account holders.
The financial institution has initiated lawsuits in federal courts in Texas, Florida, and California, accusing the defendants of illicitly withdrawing funds varying between $80,000 and $290,000 from its ATMs. Gizmodo couldn't independently verify whether these lawsuits have been actually filed.
In September, a collection of videos started circulating on TikTok and other platforms, where individuals claimed they could extract substantial amounts of cash from JPMorgan Chase by depositing checks for non-existent funds, then withdrawing a portion of the funds before the bank completely processed the checks.
In some of these videos, the creators exited JPMorgan Chase bank branches, encouraging others to attempt the alleged "unlimited money glitch."
Initially, a representative from JPMorgan Chase informed the Wall Street Journal that depositing fake checks wasn't a creative loophole but rather a form of fraud that would be reported to law enforcement. The Journal reported that numerous individuals had utilized this technique.
It appears that some individuals didn't seem to grasp the concept swiftly, or strongly believed that a comical disguise would provide adequate protection. CNBC reported that one of JP Morgan Chase's lawsuits, filed in Texas, alleges that on August 24, a masked person deposited a fake check worth $335,000 into the defendant's account, and subsequently made withdrawals totaling more than $290,000.
"Fraud is a criminal act that harm everyone and erodes trust in the banking system," commented Drew Pusateri, a spokesperson for JP Morgan Chase, to CNBC. "We're taking legal action and cooperating with law enforcement to hold liable anyone committing fraud against Chase and its customers."
Shortly following the scheme's popularization, JPMorgan Chase modified its ATM procedures, making it impossible for users to draw money from freshly deposited checks before they were fully processed.
The popular TikTok videos sparked interest in a potential tech-based loophole, leading some to believe in a future 'unlimited money glitch'. This belief in the technological exploit ignited attempts to withdraw funds from JPMorgan Chase ATMs, despite warnings of it being fraud.
