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No, you're not being paranoid. I don't give my DL to anyone. Especially if their reason is 'just because'. Because up until just 8 years ago my DL number was my SSN. Whoever thought that was a good idea fell on their head as a child. Repeatedly. But I digress.
What gets me is when facebook wanted to 'verify' my identity. Someone thought I was using a fake name (I was) and so they suspended my account (and page that had 20K followers). In order to get it back they wanted copies of my drivers license, proof of address (via a W2 or 1099) and social security card (for future payments if they should decide to start paying me). Yeah, no. That was the end of FB for me.
And the reason for showing ID for returns is to track what and how often you return things. More than 3 in a specific time and you're banned from returning things to hundreds of different stores for months (like returning 3 things to Target and you can't make returns, even with a receipt, to Bass Pro Shops or Victoria's Secret). Don't google that and how these underground companies keep track of everything you do via your DL unless you really wanna be paranoid.
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