Companies created these traps not to screw customers but to thwart fraudsters. There are SO many worldwide - see annual fraud loss stats.
Paypal and many other companies that trade in valuables have to put up protections because there are almost no reprecussions for perpetrators in certain foreign countries.
You're thinking of the fraud detection tools. I'm talking about a tool that was designed to NEVER let the user succeed. There is no way to successfully verify your ID and get your account reopened. They build it because their fraud tools were hyper aggressive and it was cheaper to lose the customers and block the fraud.
Paypal and many other companies that trade in valuables have to put up protections because there are almost no reprecussions for perpetrators in certain foreign countries.