I think we should be vigilant to thwart malicious behavior,but at the same time be very cautious not to become paranoid or allow it to lead to witchhunts. "ostracized for bad behavior" is a bit broad in that context,where you could point to things and say "clearly this is a scam because it has x in it!".
additionally too many false positives would lead to driving away legitimate, if somewhat poorly represented ventures, and general toxicity or lack of trust in the warnings, which would ironically defeat the purpose of labeling in the first place.

(note: I'm not defending "Mogul" as I have no experience with it. I'm speaking from general online community)