This is not new anymore and in fact you can find a lot of documents that's being sold in deep web.
They sold it in less than $20, a scanned id with billing statement and a selfie.
It's very unfortunate that kyc documents were abused and using for personal interest.
No matter how we tried to avoid them when the team requires it then we leave no choice.
It is definitely a big problem and I think it is difficult to overcome this problem. We should be careful while giving our personal data on every online site. These scammers are the worst people in the world and ruined lives of many innocent people. It is illegal and these scammers should be put to death, so that other scammers take a lesson from the verdict of scamming.
Yeah you are right; it is very difficult and almost impossible to know about a scam project. Thats why I always invest in authentic and reliable projects. Old coins in this regard are better option. I think that the best option for investment is bitcoin. It is more authentic and reliable than any other coin because it is the pioneer coin in the crypto market and there are no threats for you in this coin.