this happens because there are still many who have not legalized cryptocurrency, so the government has not been able to make laws governing it, so this is like being a land for fraudsters
Even though Crypto will legalized, There would still people can fake everything. It doesn't prevent the problem in regards the fraud, given also that the a Government cannot really monitor everything and everyone using Crypto as the system is still decentralized. Everyone is still anonymous. KYC could be a tool but like I said other people could still fake it, in any ways possible.