Ask HN: How do you respond to companies wanting your government ID?

I recently got a fraud alert from my credit card company about a hosting provider bill. The charge was legit but it was for servers from my failed startup and I wanted to cancel them now that I was reminded of the charge. When I went to login with the email and password it prompted me for a 6 digit 2FA code (we never opted in to this) that was emailed to the account email address. We don't own the domain anymore so there was no chance of getting it.

When I emailed support they wanted a picture of my government ID (DL or passport) along with a picture of me holding it and all the info about the transaction. And they wanted this emailed back to them...

This is one of the top hosting companies- how could they be this loose with privacy and security?

I flat refused- I did send them all the transaction info and a picture of me holding the card... I know it's becoming more and more common to ask for IDs to be submitted for services- at least companies like Stripe refuse to accept them via email, but in any case I refuse to give out this information.

I emailed back offering to do a chargeback to stop the billing on the account since they wouldn't let me in (which they agreed would suffice so the matter was resolved) but I also offered to send a certified and notarized letter stating the issue, account info and verifying my identity... they didn't even acknowledge this as an option.

Do you all just give out this information?

I'm afraid this is going to drastically reduce the number of services I can use if this continues to become the norm since I do not trust any digital format of my identity to be securely transmitted and destroyed. Not even the state or federal government requires this for getting thousands of dollars back in a tax refund or to register vehicles... Do you think there could be a startup that could offer better "identity confirmation as a service" (I know such companies exist already but they seem to not be used...).