There's no reason that justifies why anyone should joke with their KYC or allow someone else to have access to it because this is actually something that you might end up regretting. There's a reason why it's used to secure your gambling accounts and other things but some people don't really see the advantage of it. It's difficult for your casino account to get hacked if you don't play with this process
There are some people that if you don't educate them about the danger of handing over your data to someone else, they really don't know and they don't care. There are also those who even know the danger, but they still don't care; as long as the person who needs it for whatever purpose has enough money to meet their demand, they will gladly hand it over.
That's true, there are people who don't know what's the risk behind giving their information to someone to earn some money, while those who know the risk but still allowing are people who are so desperate to earn money, as mentioned by OP everything should be take seriously especially the legal consequences as it will hit you and there's no way that you can prevent legal actions against you, the sole obligation is in your own as giving your personal data only means that you have your consent to everything.