I Understand Your Concerns As This

Missing the Point.

The point of incarceration is not just to keep criminals from going certain places they shouldn't, it is to both protect society from their actions and to exact retribution for the crime for which they were convicted.

Under this Orwellian proposal, the criminals could commit any act they wanted to as long as where they went didn't trigger some automated alert. Please don't tell me you would have every lawbreaker monitored 24 hours a day by a human or AI type program, since that would cost much more than we're spending now on incarceration.

As you say, criminal activity is getting more "high tech", so what's to stop the criminal from directing or carrying out crimes on a cell phone or computer, like fraud and extortion, without ever leaving his little virtual "corral"?

Plus, if you leave someone out on the street, able to freely interact with anyone that doesn't trigger these smart alarm systems, how is the convicted criminal suffering any significant inconvenience, let alone punishment?

This is one of those things that looks better in a science fiction novel than in reality.