I don't think that all KYC is a fraud, this is like opening a bank, parties will definitely ask for your ID for valid identification and can be held responsible when something goes wrong, and KYC can now be used for validation when trading on exchange place or participate in ICO, and can be used to identify participants.
Well , maybe not all KYC is a fraud , but this does not mean that it should not be avoided by all means. It's like with sharks: everyone knows that there are many sharks that are dangerous to humans, but not everyone can distinguish between dangerous and safe, so most people avoid all sharks. I hope my analogy is clear and you understand what I mean .