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Next they'll want your DNA.
Hopefully that ID wasn't altered
Either provide it or don't, your choice.
There are many reputable providers out there who ask for this when they have doubts about you.
Providing the front of your card with all but the last 4 digits blanked out creates no greater a risk than giving them the whole card number and digits from the back of the card which you have already done.
As most surveillance techniques out there, this is in the same yard, only the innocents will suffer, the criminals will benefit.
Exactly, especially if the content is not secured in transit and while in the support desk.
I got one of these covers for my passport to cover important information that wouldn't be needed.
It's hard to get a photo of a physical copy of a PayPal account
Some people are so skilled, they will manage...
I insisted and i got the account without sending the credit card. Only the ID with some hidden places.
This was an active topic of discussion on WHT:
http://www.webhostingtalk.com/showthread.php?t=1569132
For internet orders, I use one-time credit card numbers that appear on the computer screen. There is no physical credit card. I could take a screenshot of the "card", but it is obviously not made of plastic and it looks somewhat different.
I agree with @jtk that provider requirements for images of government-issued ID and credit cards shifts too much risk to the consumer. As stated in the WHT thread above, some providers insist on complete, uncensored images. The customer must trust and rely on the provider to secure those images, often for a long period of time, through business failures, acquisitions, etc.
PayPal can be checked verified or not, and name address match, this enough for it.
Paypal Credit sends me a statement every month even when the amount due is zero.
EDIT: Also some day they're going to get a copy of my Chinese ID if they don't specify language. What, you can't read it? 1/5th of the world can, how many can sprecht Deutsch? Oh, and block out all but the first 6 digits, since those are consistent card identification numbers you can Google.
Unsafe? Probably. Logical? Sure. Just put paper over the first three digit blocks and you're good to go. I'm sure they do this so they can prove that the buyer did indeed approve of the purchase if someone decides to do a card chargeback.
How many times did this work?