It seems to me companies beyond a certain size become so dysfunctional that no one person can handle a situation like this coherently. It's all different factions internally each pursuing their own objectives, protecting their turf or fighting for survival. It's likely there's not so much the customer service team could have done.
It's not like a small business where the owner themselves can guarantee high quality services
It's not dysfunction, it's purposeful negligence, to save money.
Nobody at Google or Amazon will ever be fired for writing code that bans a few too many people, or labels legitimate users as fraudulent. It simply does not harm the company at all. A few people here on HN talk about how their small group went with an alternative, or they personally de-google'd, but for the rest of us, the option is cross your fingers and hope or just do what will happen when you get banned anyway.
It's not like a small business where the owner themselves can guarantee high quality services