Am I the only one that finds this US 3 form of ID stuff nuts!?!

[d4n13]

For a while now, I've been amazed at how unregulated banks are and how over regulated bank-like institutions are.

I've gotten many credit cards with nothing more than scribbling on a flier and mailing it in.

I've gotten more than one bank account doing the same thing.  Going to a web page and filling out a form.

How is it that all these, fully binding legal agreements don't require much more than my word, yet the burden on exchanges, and now even paypal require some, if not all of:
1) A Utility bill
2) A Driver's License
3) A Passport
4) A Social Security Card
5) An active cell phone in my name
6) A recent picture of me holding 1-5

What's more they want me to bundle this "steal-my-identity-please" package in an envelope and just hand it to a stranger in a US postal uniform, or worse yet FAX it... Yes FAX it.  No PGP key, no burn-after-use policy, just stick it in our datacenter and assure the customer that "we can never get hacked".

I mean seriously people... This has got to be the worst possible idea.  I realize this is all FINCEN strong arm stuff to try to make things so complicated they are effectively unusable.  Forcing the huddled masses back to fiat.

To all you start-up capitalists (or paypal), spend 20 minutes writing a good and concise "We will burn/shred/incinerate/analiate/vaporize all digitally encrypted ID verification documents after they have gone through single use decryption and displayed once to a certified officer of the exchange to complete the FINCEN requirements" document.  At a very minimum state how awesomely my ID verification documents are encrypted and isolated from theft.

No one can possibly be comfortable with some hack storing this stuff in the clear on some back office SATA drive.

Probably the wrong place for my rant, but after finding the latest banner on one of my exchange accounts stating another freeze until 1-6 above happen, I guess I kinda lost my cool.

[d4n13]

Details of Bitstamp Hack

TL/DR BitStamp exec opened word doc sent to him over Skype and infected his laptop with access to the hot wallet.  Lost 18,000 BTC

I rest my case... How can these exchanges expect me to provide every shred of personal information with no regard for the fact that data breaches CAN and WILL happen (even if you uninstall Microsoft Word)

[Gleb Gamow]

Details of Bitstamp Hack

TL/DR BitStamp exec opened word doc sent to him over Skype and infected his laptop with access to the hot wallet.  Lost 18,000 BTC

I rest my case... How can these exchanges expect me to provide every shred of personal information with no regard for the fact that data breaches CAN and WILL happen (even if you uninstall Microsoft Word)

This is an active investigation. We believe we have identified at least one of the hackers and are baiting a honey trap to lure him into the UK in order to make an arrest. Moreover, we need to be very careful not to educate other criminal hackers about how we safeguard our assets and information. Accordingly, no part of this report may be made public or given to a third party without the prior express written permission of Bitstamp Ltd.

FWIW, even if ten forms of sensitive info is requested, safely assume the entity requested it will store it safely on their servers where nobody can get to it then publish it on the internet even if they could.