PLEASE -- Let's stop BSing customers with the line that a police report is required. Reg E doesn't provide for it, and mandating a police report has a chilling effect on a consumer's exercise of his/her rights.
You can tell Gram the truth -- If anyone can be linked to any of the transactions with an ATM photo, or otherwise, you will have to honor Gram's claim that the transactions were unauthorized, but you will pursue whatever legal avenues you have to recover your funds from the thief -- even if it's her granddaughter. If Gram decides to withdraw her claim, fine. If not, you have to proceed.
You have to research Gram's claim, whether she provides you a police report, a written claim, or nothing on paper at all.
John S. Burnett
Fighting for Compliance since 1976
Bankers' Threads User #8