In 2019, JP Morgan’s online brokerage platform ‘Chase You Invest’ experienced a technical error that allowed customers to execute trades with borrowed funds, and then immediately sell them again for credit. This ‘infinite money glitch’ allowed certain users to essentially trade with unlimited funds, leading to large-scale financial fraud on the platform.
Despite being aware of the issue and implementing a fix, the bank announced in early 2022 that it has filed lawsuits against certain customers who allegedly knew about the glitch and exploited it for financial gain. This marks one of the first times a major financial institution has taken legal action against its own customers over a software glitch.
The cases revolve around the principle of unjust enrichment, where an individual benefits from something they did not rightfully earn. JP Morgan alleges that these customers intentionally manipulated the system to benefit financially, meaning they must repay those gains to the bank. The bank has also likely implemented more robust fraud detection and prevention measures following the incident.
Next steps for Chase You Invest customers potentially impacted by this are to wait for further communication from JP Morgan or proactively reach out to the bank for more information. It’s always recommended to consult with a financial advisor or legal counsel in such situations to understand potential implications.
It’s worth noting that this situation, while unusual, highlights the importance of ethical behavior when using financial software and systems. Just because a system allows action doesn’t necessarily mean it’s legal or ethical.
JPMorgan begins suing customers who allegedly stole thousands of dollars in ‘infinite money glitch’
In 2019, JP Morgan’s online brokerage platform ‘Chase You Invest’ experienced a technical error that allowed customers to execute trades with borrowed funds, and then immediately sell them again for credit. This ‘infinite money glitch’ allowed certain users to essentially trade with unlimited funds, leading to large-scale financial fraud on the platform.
Despite being aware of the issue and implementing a fix, the bank announced in early 2022 that it has filed lawsuits against certain customers who allegedly knew about the glitch and exploited it for financial gain. This marks one of the first times a major financial institution has taken legal action against its own customers over a software glitch.
The cases revolve around the principle of unjust enrichment, where an individual benefits from something they did not rightfully earn. JP Morgan alleges that these customers intentionally manipulated the system to benefit financially, meaning they must repay those gains to the bank. The bank has also likely implemented more robust fraud detection and prevention measures following the incident.
Next steps for Chase You Invest customers potentially impacted by this are to wait for further communication from JP Morgan or proactively reach out to the bank for more information. It’s always recommended to consult with a financial advisor or legal counsel in such situations to understand potential implications.
It’s worth noting that this situation, while unusual, highlights the importance of ethical behavior when using financial software and systems. Just because a system allows action doesn’t necessarily mean it’s legal or ethical.
