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Bank fraud algorithms are leading institutions to close customers’ accounts — and customers have no idea what’s going on.
After the algorithm rings the alarm, a human team makes a choice. But the incentives for the financial institutions are skewed, according to The New York Times: it’s easier to close a customer’s account, even if they’ve done nothing wrong, than to risk penalties for bad transactions. That means a lot of innocent people are getting left in the lurch, with no access to their money.
Banks Are Closing Customer Accounts, With Little Explanation
[The New York Times]
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