AI error jails innocent grandmother for months in Fargo fraud case – InForum

FARGO — A grandmother from Tennessee is working to get her life back, after what she says was a case of mistaken identity, linked to North Dakota, that nearly cost her everything.

Angela Lipps spent nearly six months in jail, after Fargo police connected her to a bank fraud case in the metro.

It’s a crime she says she didn’t commit. In fact, she said she’s never been to North Dakota.

Lipps, 50, is the mother of three grown children and has five grandchildren, spending nearly her entire life in north-central Tennessee. The extent of her travels is limited to neighboring states.

She’s never been on an airplane in her life.

That changed last summer when police flew her to North Dakota to face criminal charges, after…

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PAYROLL & HR CONTROLS (PREVENTING “GHOST” SCHEMES)

Payroll fraud is often the hardest to detect because it “looks” like a normal business expense.

• Segregation of Duties (SoD): The person who adds new employees to the system must not be the same person who approves the monthly pay run.
• Mandatory Vacation Policy: Require all financial and HR staff to take 5–10 consecutive days of leave annually. Fraud often surfaces when the perpetrator isn’t there to “hide” the trail.
• Ghost Employee Audit: Perform a quarterly “Headcount Reconciliation” where managers must physically verify every name on their payroll list exists.
• Self-Pay Blocking: Ensure the payroll software has a hard-coded block preventing administrators from editing their own salary or bank details.