This is the most dangerous risk in gambling; in fact, not only in gambling because there are many things that normally require KYC. However, someone who wants to become a better person in the future should never get carried away by giving out their KYC to anyone, regardless of the amount they are offering you.
Though, sometimes most of us normally take risks because of small gains and do something that could affect us in the future.
KYC is such a massive privacy issue, it should be done as minimum as possible.
It makes no sense to me to be selling your own KYC to other people, really.
The usual way criminals use this is when they steal the IDs, but if people do it with their own KYC, that's just crazy in my mind.