Flawed Facial Recognition Technology Leads to Wrongful Arrest in North Dakota

Angela Lipps, a 50-year-old woman from Carter County, Tennessee, was wrongfully jailed for two months in Fargo, North Dakota, after being misidentified as a suspect in a bank fraud case by an artificial intelligence (AI) facial recognition system. Lipps had never visited North Dakota prior to her arrest, which occurred on October 30, 2025, following a probation violation in Tennessee. The Fargo Police Department acted on the AI-generated identification without corroborating evidence, leading to her wrongful detention.

North Dakota Bank Fraud Charges Dropped Against Tennessee WomanNew York Times

Lipps was extradited to Fargo, where she faced multiple charges, including unauthorized use of personal identifying information and theft. Her attorney, Jay Greenwood, quickly established her innocence by providing bank records that confirmed she had remained in Tennessee during the time of the alleged crimes. The charges against Lipps were dropped shortly before a scheduled preliminary hearing, highlighting the critical errors made in her case.

North Dakota Bank Fraud Charges Dropped Against Tennessee WomanNew York Times

Fargo Police Chief David Zibolski publicly acknowledged the department's "missteps" in handling Lipps's case during a press conference on March 23, 2026. He stated that the department had overhauled its AI policy but did not issue a formal apology to Lipps, who is now planning to sue the police. Zibolski emphasized the need for improved verification processes for AI-generated leads, stating, “We’re happy to acknowledge when we make errors, and we’ve made a few in this case, for sure.”

North Dakota Bank Fraud Charges Dropped Against Tennessee Woman

The West Fargo Police Department, which utilized the Clearview AI facial recognition tool since 2020, has faced scrutiny due to this incident. Captain Burkhartsmeier explained that officers typically attempt to identify suspects through traditional methods before resorting to AI technology. The department has used Clearview AI over 250 times in the past two years, primarily for theft and fraud cases, but emphasized that every potential match must be verified through additional investigative steps.

Red River Valley NewsNorth Dakota Bank Fraud Charges Dropped Against Tennessee Woman

Critics, including Greenwood, have raised concerns about the over-reliance on AI in law enforcement. Greenwood described Lipps's case as a cautionary tale, stating, “It can't be the only tool. And they just left it at that. And this is what happens.” The incident underscores the potential dangers of using AI-powered identification tools without adequate verification, which can lead to wrongful arrests and erode public trust in law enforcement.

North Dakota Bank Fraud Charges Dropped Against Tennessee Woman

In response to the incident, the Fargo Police Department has issued a temporary directive restricting the use of facial recognition technology to only the criminal investigation division. The overall use of this technology is currently under review, as the department seeks to implement more rigorous investigative procedures to prevent similar occurrences in the future.

North Dakota Bank Fraud Charges Dropped Against Tennessee Woman

• “We’re happy to acknowledge when we make errors, and we’ve made a few in this case, for sure,” — David Zibolski, Fargo Police Chief

New York Times

• “All I did was ask her family if she had ever left Tennessee, and they were pretty clear that she hadn't, and then provided me information within about a week. So it's kind of split both ways. I get when people are going to use the tools that they have, you know, AI tools that they can use. But it can't be the only tool. And they just left it at that. And this is what happens.” — Jay Greenwood, Angela Lipps' attorney

North Dakota Bank Fraud Charges Dropped Against Tennessee Woman