Picture Perfect

A man in Georgia was arrested for using a stolen bank card after being identified by an ATM transaction photograph. Unfortunately, it was not the man who had committed the crime. As the identification was provided by bank authorities, the incident was settled out-of-court with the financial institution suffering a large loss.

In a more recent, well publicized case, a woman was raped and robbed in her Manhattan apartment, and an hour later her card was used at an ATM equipped with a camera.

Whether the bank gave his picture to the police, or the police obtained the film and determined which photo was correct is information that is "not available". But no matter who was responsible, the picture was subsequently provided to a newspaper which printed it on the front page with the word "WANTED!" above it.

The man was identified by neighbors (a father of four, no criminal record) and was picked up and "questioned for several hours" before the police determined that they had the wrong man.

A new suspect has been arrested.

Odds are the wronged man will sue.

INDEMNIFICATION-ANY GOOD?
Sometimes financial institutions will supply a photograph to another financial institution to assist them in their investigation of a crime.

Indemnification from the investigating bank to the bank supplying the picture is very much in order. This could at least protect the bank supplying the picture from damages that may arise from misuse of the photo. (Although in the opinion of at least one attorney interviewed for this article, there is no language in any indemnification that would protect a financial institution from liability due to misuse or abuse of the information provided.)

If a financial institution is going to supply a law enforcement agency with a photograph, the safest way to do it is by means of a subpoena. Supplied in this fashion, the indemnification to the bank is reasonably clear. Any other type of indemnification is open to litigation.

Copyright © 1991 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 2, No. 9, 11/91