The courts are taking a stand against banks who pursue criminal charges against an innocent third party whose identity is stolen and used to defraud the bank. It all began with plaintiff Howard Brunson who was arrested and spent 13 days in custody for a check fraud scheme carried out by a person who opened an Affinity account using his identity.

The New Jersey Appellate Division, in Brunson v. Affinity Federal Credit Union, No A-4439-06 ruled last week that financial institutions and fraud investigators have a duty to “pursue with reasonable care their responsibility for protecting not only their own customers, but non-customers who may be victims of identity theft.”

The holding reversed a grant of summary judgment dismissing claims for negligence and malicious prosecution against Affinity Federal Credit Union and its fraud investigator.

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