So how they did it once upon a time was you showed them your license, they punched the # into the system that would check it. The person at the desk would confirm it was you from the picture. No need to scan the actual ID card, which is where this problem comes from.

Yeah, it was from renting cars, but they are digital copies of your ID, so any online service is just as "at-risk", if not more.

it wasn't just Hertz. it was the ID verification service they used.