LOL, I am hitting most of these for completely different reasons and never attempted nor plan to attempt a fraud. I guess another overreaching application of statistics (it must be because confidence intervals say so and our prediction model agrees!). It resembles to me the saying that all murderers eat bread, so bread is dangerous!!!
I really hate oversimplifications in these serious matters.
It happened to me that my bank was using a similar silly algorithm to consistently block my credit card during my world travel every time I arrived to a new country/airport, even if I told them about it in advance. A way to lose customer for life for sure, especially when their emergency line operates only during working days between 9am-6pm in Germany...
Not sure what your point is. Every model, be it human or automatic/statistical, is by definition a "simplification" and is going to have some false positives and negatives. Having these flaws doesn't make the entire model useless.
I really hate oversimplifications in these serious matters.
It happened to me that my bank was using a similar silly algorithm to consistently block my credit card during my world travel every time I arrived to a new country/airport, even if I told them about it in advance. A way to lose customer for life for sure, especially when their emergency line operates only during working days between 9am-6pm in Germany...