The Rekenkamer Rotterdam (a Court of Audit) looked at how the city of Rotterdam is using predictive algorithms and whether that use could lead to ethical problems. In their report, they describe how the city lacks a proper overview of the algorithms that it is using, how there is no coordination and thus no one takes responsibility when things go wrong, and how sensitive data (like nationality) were not used by one particular fraud detection algorithm, but that so-called proxy variables for ethnicity – like low literacy, which might correlate with ethnicity – were still part of the calculations. According to the Rekenkamer this could lead to unfair treatment, or as we would call it: ethnic profiling.
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