This sounds more like a way to send desperate people into a death spiral by raising interest rates or denying credit availability right at the worst possible moment than any kind of system that would prevent crime.
> The proposal doesn't go into much detail about how they imagine it will work, but it sounds like they're just saying that a statistical model (based on a larger set of data) would be more useful than a set of rules based on a tiny set of inputs. This seems entirely reasonable.
It's implying they want to invade everyone's privacy to set up a hallucinatory black box that destroys lives at random under the guise of... I'm not even sure what this is supposed to do. It's not going to yield anything that would be useful in a prosecution so it's more like opaque government-facilitated denial of service without due process. Far from reasonable, it's total crap.