All big service companies are doing this, airlines, hotels, insurance, rental, car rental. They have a big database that they all input into.
I was (temp) barred from renting a car in 2005 because they said I stole a rental. I went back after them to prove it and they did a bit of digging. It was in Illinois, a state I have never been too… Oh and he was black and I’m glow in the dark Irish. If I hadn’t pressed it they were fine w/ denying me.
Also got grabbed by the Michigan Sate Police over the same matter, but they figured it out pretty quick compared to the rental car company. No cuffs or jail, just a 15 minute wait and the trooper apologizing and we had a laugh over it.