I am digging this old post. I am terrified at how many places you are asked for a passport copy even in the U.S. Back in 2009, from when this thread is, there used not to be that many scanners and barely any smarthones or tablets with camera. Now, I am at a hotel in Cyprus and the first thing I see is a random receptionist taking picture of my passport with her (personal) smartphone.
I have seen this in most of Europe, Asia and even America. It is not that one has something to hide but what one has to share? With a nice high resolution color copy of your document you can easily become a victim of identity theft. How do you fight back?
Myself personally, I always try to refuse when a hotel wants to copy my ID and politely ask if that information could be written manually. It is hit of miss but good hotels often comply with the exception of Spain, Hungary... Also when you are checking in to a place with no front desk, they want that picture of your ID over the email or whatsapp. I am afraid this has become a normal, a new standard.
I think people are oblivious and most don't care. My question is. Do you care? If so, how do you fight back?