That's true. I suspect if you provide a completely fabricated identity to X they could turn around and report that to the respective state or federal authority who could prosecute you for possessing it with evidence being the act of using it by uploading to that verification service.
If I’m American and I use a fake I D from another country, is that illegal?
I'm not a lawyer.
It it worth a night in jail, a couple thousand dollars in legal fees and being felon to find out?