I still think racial profiling to flag suspicious cases is an example of discrimination. That's because the system more stringently checks people in one racial group for wrongdoing, which results in more of those people in the criminal justice pipeline.

As a concrete example of where this can go wrong, let's say that (hypothetically) 1% of people commit fraud, and that this prevalence is not correlated with race. But, due to past discriminatory practices, more people of one race than another are convicted of fraud. Then, this algorithm would perpetuate this discrimination, since, say, it would identify 80% of fraud in the discriminated group but only 50% of the non-discriminated group.