Is it at all surprising?
This government has just changed the laws about reporting a whole raft of sorts of ID fraud, such that we should have to report it to our Banks and lenders, not the police themselves. We're then meant to sit back and let the banks/lenders decide whether to report these crimes to the Police or not, as they're clearly much better able to do this than we might, unless of course they're too busy trying to protect their reputations for immaculate security.
So back to the question "Is it at all surprising... that I have no confidence in any of this working properly, other than the one guaranteed outcome, that the customers will get screwed at their own expense?" NO, clearly not.