A similar thing has happened here in the Netherlands. Algorithms have been used to detect fraud, but had a discriminatory bias and accused thousands of parents of child benefits fraud. Those parents came in huge financial problems as they had to back back the allowances, many even got their children taken away and to this day haven't gotten them back.

The Third Rutte Cabinet did resign over this scandal, but many of those politicians came back at another position, including prime minister Rutte, because that's somehow allowed.

Wikipedia (English): https://en.m.wikipedia.org/wiki/Dutch_childcare_benefits_scandal