Tennessee grandmother jailed after AI facial recognition misidentifies her in fraud case

A Tennessee grandmother claims she spent time in jail, accused of a crime she didn't commit, because authorities had used AI facial recognition to incorrectly identify her as the suspect. 

Dig deeper:

Angela Lipps, 50, was accused of committing bank fraud with a fake U.S. Army military ID to take out thousands of dollars between April and May 2025 in North Dakota.

According to charging documents provided by her attorney Eric Rice to FOX Television Stations, authorities in Fargo had used facial recognition software to identify Lipps as the suspect seen in surveillance videos. 

According to WCYB, arrest reports show Lipps was taken to North Dakota at the end of October, then finally released at the end of December.

What they're saying:

Rice told the news outlet an AI program appeared to select her face. An officer later reviewed her social media, determined she was a sufficient match and obtained an arrest warrant.

"She remained in custody until the charges were dismissed," Rice added. "She did have exculpatory evidence available, such as records showing she was in Tennessee at the time. I don’t know why it took multiple months for that information to reach the state, but once it did, the charges were dismissed relatively quickly."

The other side:

Assistant Chief Travis Stefonowicz of the Fargo Police Department provided additional details to FOX Television Stations regarding the case.

According to Stefonowicz, Lipps was arrested in Tennessee on July 14, 2025, for a probation violation. She remained in custody there until Tennessee authorities notified the Cass County Sheriff’s Office on October 20, 2025, that she had waived extradition to North Dakota and was ready for transport. 

Officials said it remains unclear whether the length of her detention in Tennessee was due to serving time for the violation or delays related to extradition.

Lipps made her first court appearance in North Dakota on October 31, 2025. However, the assigned detective was not aware she was in custody in the state until December 5, 2025. Because she had legal representation, investigators needed approval from her attorney before conducting an interview, which was granted on December 19.

Following that interview, authorities determined further investigation was needed. On December 23, the Fargo Police Department, Cass County State’s Attorney, and a presiding judge agreed to dismiss the charges without prejudice to allow for additional inquiry. Lipps was released from the Cass County Jail the following day.

The department also clarified its stance on facial recognition technology, stating it does not own or directly use such systems. However, investigators may occasionally request assistance from external state or national intelligence centers that utilize facial recognition to help generate leads.

Following a comprehensive internal review, Stefonowicz acknowledged that the initial investigation could have been more thorough. In response, the department has implemented a formal policy governing the use of facial recognition technology. The new policy, adopted March 25, establishes clear guidelines, marking a shift from prior practice where no formal policy existed because the department did not directly operate such tools.

The Source: The information in the story comes from multiple sources, including charging documents provided by Lipps’ attorney, Eric Rice, to FOX Television Stations, as well as statements from Rice about how facial recognition was used and how the case unfolded. This story was reported from Los Angeles. 


 

Crime and Public SafetyArtificial IntelligenceTennessee