Then they can start cracking down on the problem if it becomes widespread. But not when it isn't.

When the punishment far exceeds the loss caused by the "crime" then it is absolutely unfair, it undermines the rule of law itself.

Just being arrested over it could be considered punishment itself. Especially if it's a young person who gets into trouble, it is traumatic for them. It is also sending the message that the system itself is unjust, and he/she might not think twice before committing a real crime, e.g. real theft or fraud when he/she grows up.