JPMorgan Chase is accused of allowing hundreds of thousands of dollars to exit a scammer’s account after the bank was warned of fraudulent activity.
A new lawsuit from Massachusetts-based Baystate Health says the health care company fell for an email scam in November of 2022 and wired $700,000 to a fraudulent account at JPMorgan Chase.
Baystate says it alerted Bank of America to the fraud, which then contacted Chase to warn about the account.
But according to the lawsuit, Chase allowed at least $205,542 to be withdrawn by the scammer after the warning from BofA.
“…Defendant allowed funds to be withdrawn from the fraudulent account by the criminal actor despite the fact that defendant had been told that the Baystate funds had been wired to an account controlled by a hacker/criminal actor as a result of fraud…
Defendant has not denied to Baystate that the funds were withdrawn from the Fraudulent Account after it was informed by BOA that the account was controlled by a hacker/criminal actor.
Defendant had a duty to delay and/or prevent the withdrawal of any funds from the Fraudulent Account.”
Since the incident, authorities have recovered some of the lost funds.
But Baystate alleges about $420,000 of its money remains missing, with no clear explanation from Chase regarding its whereabouts. Baystate is asking for compensation from JPMorgan Chase for the $420,000, plus interest.
JPMorgan has not released a public statement on the case.
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