Chase Bank ATM Glitch: What Does This Mean for Banks?

The 2024 Chase Bank ATM glitch was not just a cute TikTok trend that came and went. With the consequences of the glitch now unfolding for the fraudsters that took advantage, how are banks preparing for the future? 

Is there more security for ATMs, or will this happen again?

The Chase Bank Glitch: What Happened? 

On paper, the Chase Bank Glitch is very clever. How it worked was fraudsters would deposit a large check into their account in an ATM, and through a technical glitch, they were able to withdraw the money before the check went through the proper channels to clear.  It became known as the "infinite money glitch" and went viral on several social platforms like TikTok, with users encouraging and showing others how to take advantage of the bank. 

JPMorgan did not take this lightly, and decided to sue fraudsters who stool thousands of dollars from their bank as a part of the glitch. Two lawsuits were filed at the end of October against two individuals who stole over $660,000. 

The glitch has been worked out, and Chase Bank can no longer be taken advantage of in this way. But, how should banks address this so situations like this don't happen in the future?

Why Banks Must Modernize ATM Security

One things banks should start doing now is increasing or upgrading their ATM security. On top of fraud techniques like the ATM glitch, ATMs are growing less and less vital by the day. With less and less cash transactions happening, ATM usage has gone down, American consumers who carry cash falling about 30% from 2022 to 2024. 

However, engagement with ones bank has also decreased. With the pandemic accelerating the shift towards digital banking channels, banks like  have shut down over 1,600 branches per year since 2022, with JPMorgan shutting down 7 locations in just a week this past fall. This is leaving banking customers stranded without means of physically going to a branch to get something like a cahsier's check, or financial advice from a one-on-one meeting with an advisor.

Maybe maintenance for these outdated ATMs is also becoming less frequent, allowing for such issues to arise. Banks are looking into ways to improve ATM security, mostly with new machines that can take their place. These might include ITMs, (Interactive Teller Machines) where consumers can get help from a live teller through a video call, but that might not be the answer either. 

So what should banks look for when choosing a replacement for ATMs? 

Security Features for New ATMs

Banks should look for a solution that can incorporate the security and trust of their bank, while offering more than just cash dispensing. The ideal ATM or new self-service banking kiosk should let customers print & access cashier's checks & bank cards, while still being a secure & trusted way of banking. These machines should include:

• Rigorous Anti-Fraud Measures
  
  

• Sécurité physique et numérique renforcée
  
  

• Lecture complète de cartes et de codes-barres
  
  

• Surveillance et assistance à distance
  
  

• Compatibilité avec les derniers logiciels et systèmes d'exploitation

Rebuilding Self-Service with Trust

The aftermath of the Chase glitch will likely see Chase Bank working diligently to regain its customers’ trust, but the larger lesson stretches beyond just one institution. Financial security is dynamic, requiring constant vigilance and innovation. Banks that take a proactive approach—not a reactive one—will likely emerge as leaders in the industry.

Investments in cutting-edge ATM technology and comprehensive security frameworks are no longer optional but essential. Banks must remember that customer trust is built on reliability, and every service failure puts that trust at risk. To thrive in today's fast-paced, tech-driven economy, institutions must blend innovative solutions with a commitment to flawless execution. When customers feel secure, everyone wins.

The 2024 Chase ATM glitch was a wake-up call—a reminder that the digital era requires not just adapting to change but staying several steps ahead of it.

To see TROY's self-service banking solution, click here.