I have the exact same problem. I reproduced and observed the same
behavior with logrotate as stated above.  Polling solved the problem as
stated.

But:

A few weeks ago my Ubuntu 14.04 server had strange problems and errors. I 
didn't have time to figure it out and made a clean install.
Yesterday I was shocked that my server had hundreds of attacks from same ip's 
and none of them are banned as usual. I do not usually check my logs as i rely 
on fail2ban. I am using fail2ban for years without any occasions. This is the 
most simple, primary and working solution on servers. Now i am sure that 
fail2ban stopped working after an update way before and some kind of attack 
caused my server to break. 

This is a critical security issue. Comments above explain it clearly
that this is a severe security issue. The purpose of fail2ban is
security. I can repeat it over and over. This is a security bug.
Importance is severe and critical not 'undecided' !  I can't believe
that this is not taken seriously. 8 months since bug report and no body
cares. This is unacceptable. This is the LTS version of Ubuntu server. I
still can't believe it.

How can u say that this is a regular bug? If fail2ban does not work, an
attacker can brute force a wordpress account, inject php code and cause
loss of data and privacy. I don't even mention ssh. There are many more
scenarios. Many people rely on fail2ban as it is a simple and effective
security solution. I can't even imagine users unaware this situation.

Bugs can happen; but having a confirmed security bug report and not
taking it seriously for 8 months is unacceptable. I spent so much time
to figure the problem and i couldn't. I am not an expert. If this bug
was not reported, i would not have figured out the problem and solve it.

How can i trust this distro anymore, who knows how many other critical issues 
that are not taken seriously ! 
It is time to move on to another distro...

I sincerely thank these 4 people who reported this bug, suggested
solutions and have taken this issue seriously.

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https://bugs.launchpad.net/bugs/1406996

Title:
  fail2ban fails to ban

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