Dutch scandal serves as a warning for Europe over risks of using algorithms

In 2019 it was revealed that the Dutch tax authorities had used a self-learning algorithm to create risk profiles in an effort to spot child care benefits fraud.

Authorities penalized families over a mere suspicion of fraud based on the system’s risk indicators. Tens of thousands of families — often with lower incomes or belonging to ethnic minorities — were pushed into poverty because of exorbitant debts to the tax agency. Some victims committed suicide. More than a thousand children were taken into foster care.