The FBI uses a hierarchical counting method so that if two crimes are committed by the same person, only the most serious one is counted. Therefore if someone rapes and then murders a woman, only the murder is added into the crime statistics. The Philadelphia Police concluded that the increase was not due to increased crime but to police improperly counting the crimes. As a perverse result, when the next Philadelphia crime report comes out there will likely be a large decrease in property crimes. As a result of these accounting tricks, Philadelphia will have the unusual distinction of having had crime rates that are both too high and too low.
Feedback loops work, but only if they're the right ones.