A Massachusetts hospital is suing JPMorgan Chase, claiming the bank allowed a scammer to withdraw hundreds of thousands of dollars even after being warned about the fraudulent activity.
Hospital Loses $700,000 to Email Scam
Baystate Health says they fell victim to an email scam in November 2022, wiring $700,000 to a fraudulent account at JPMorgan Chase. They immediately alerted Bank of America (BofA) to the fraud, and BofA contacted Chase to warn them about the account.
Chase Allegedly Allows Withdrawal Despite Warning
Despite the warning from BofA, Chase allegedly allowed the scammer to withdraw at least $205,542 from the account. The lawsuit claims that Chase “had a duty to delay and/or prevent the withdrawal of any funds from the Fraudulent Account.”
Hospital Still Missing $420,000
Authorities have recovered some of the lost funds, but Baystate is still missing about $420,000. The hospital is suing JPMorgan Chase for this amount, plus interest.
JPMorgan Has Not Responded
JPMorgan Chase has not yet released a public statement on the lawsuit.
