Schneider and Indy form an immediate bond, which of course develops into a relationship, and the viewer is led to believe that she is destined to be the film's enthusiastic heroine. While attempting to rescue his father from a Nazi castle, Indy is forced to surrender when one of the guards takes Elsa hostage - of course the Austrian is revealed to be a Nazi agent, and the hostage scenario nothing more than a clever ruse. The sting in the tale, is that not only was Dr Schneider sleeping with Indy, she was also sleeping with his father. While Elsa makes up for it later on in the film, that betrayal almost provided the Nazis with all the information they would need to gain the upper hand.
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