Mastercard calls it the "Automatic Billing Updater" [1].
For non-fraud related reissues, it's not a flaw but actually an enhancement: you don't have to remember to update your card information whenever your card expires.
It's a feature for expired cards, it's a flaw for stolen credit cards. I know plenty of people that will report a card stolen and then cancel the card to avoid dealing with that kind of crap.