This is not where it started, people has been stealing IDs from others and selling them online to make money, and these are not little money, they make a lot of money from selling people's ID. That's why you should be very careful with giving out your information online, especially in cryptocurrency. Cryptocurrency market shouldn't be a place where kyc is requested because it was meant to be for privacy and not exposing the users, any project that is requesting KYC is likely to be criminals out for identity thefts.