The problem here is that when it's the banks doing it there really is'nt a court involved, nor police there simply is an algorithm spotting something and usually that's the end of the story.

If the block was followed by mandatory court action by whoever made the block with failure to successfully prosecute resulting in compensation paid to unjustly accused, there would be balance but thats also not how this kind of block works, as the courts are usually not involved when it's the banks/services own mandatory anti-fraud process thats being invoked, and not the police conducting an investigation prior to an actual open court case.

The problem is that private organizations are being asked to police their customers on their own under a framework thats basically outside of the justice systems, under penalty of fines by a justice system, that is not issuing the same fines when the private organization punish the innocent.

Again the problem is we have a mechanism that made some sense when nothing ever happened without sooner or later happening in a court that can/will punish the police for false arrest when/if the resulting prosecution fails, that due to the fact that a false/incorrect negative action no longer have consequences for those making it happen, especially as it happens under the pretense of being done but a free private organization by private organization that are theoretically free to reject customers even if that rejection is practically ordered by the state.