Brazil has serious no go zones, some areas can get you killed just for trespassing. Anyways, that's probably why this feature even exists. Good part is that lots of Brazilians are tech savvy ( on a much higher rate than in US ), so this would fail quite frequently.
My guess is that Uber will record drivers that commit fraud and they would be affected over time. One point, taxi drivers are famous for making way worse frauds than what they do at Uber and with no way for you to file a complaint.
Peace