Something similar happened in Michigan where they put a computer program, Midas, in charge of fraud detection for unemployment insurance.

It improperly accused like hundreds of people of fraud and forced them to pay these huge penalties, thousands of dollars, or go to jail I believe, and even after they found out it was faulty they still tried to deny it so they did not have to admit a mistake just like in the British post Scandal you are referring to.

All done by people that wanted to get rid of unemployment insurance completely but couldn't so were trying to deny it to people that qualify for it. And they all get away scot-free despite knowingly sticking innocents with fraud charges.