JPMorgan Chase's own former head of scam prevention alleged that the largest U.S. bank deliberately relabeled genuine fraud losses as authorized "scams" — a distinction worth more than $100 million in denied reimbursements — and that federal prosecutors in Manhattan and Treasury Department officials found the allegation credible enough to meet with her and accept supporting documents, The Wall Street Journal reported on August 5, 2026.
The whistleblower, Christy Lillie, filed her complaint last year while employed as JPMorgan's top scam-prevention executive. Prosecutors from the U.S. Attorney's Office for the Southern District of New York and officials from the Treasury Department met with Lillie and received documents laying out her allegations. Whether those authorities are continuing to investigate or have since set the matter aside is not publicly known. No charges have been filed, and no formal allegations of wrongdoing have been made against the bank. JPMorgan denied the claims in full.
The substance of what Lillie alleged — that a systemic misclassification practice may have let America's biggest bank avoid paying back fraud victims under federal consumer protection law — lands at the center of one of the most consequential open questions in consumer finance: which losses from payment scams must banks cover, and which can they label as the customer's own mistake.
The core of Lillie's complaint rests on a legal distinction that banks...
[Sportschosun Jang Jong-ho] A total of 34.789 billion won in false National Health Insurance claims was detected at 839 health care institutions over the past four years (2022-2025). According to d...