I had to verify my identity for an online service a while back. They used a third party company that has a mobile phone app essentially for video conferencing; you then call this company via the app and talk to them. They ask you to show your face and move around and to show your ID, including moving it around so they can check that the security hologram (this was an EU passport) is indeed one. So for this kind of check MS Paint skills would not be enough by far.
I guess they had no way of verifying that the ID info is real, but apparently this process was trustworthy enough for their client.
Maybe, but you can say that about anything that is not in-person face-to-face communication along with physically handing over the passport for inspection. I think the process was pretty rigorous for the current state of the art, and infinitely better than the normal approach of mailing around PDFs into which I have pasted a scan of my signature.
I guess they had no way of verifying that the ID info is real, but apparently this process was trustworthy enough for their client.