For traveling overseas I needed a different SIM card and bought one at a local store (to be repaid by my carrier). The clerk at the store did not need my password because I showed him my valid identification. Password was useless in this case.
Not counting fake IDs that get past clerks, a few years ago Krebs On Security noted that the normal bribe at a phone kiosk was $85 to do the SIM swap illegally.
There's a big gap between the high trust and low salary that companies give their frontline employees. And despite (or because of) that gap, they're not motivated to do extensive background checks.
But the average employee at the Verizon kiosk in the local mall is arguably handling more sensitive data than an employee at the passport office in the State Department.
This sounds reasonable enough, except they never actually verified the phone was lost, stolen or destroyed.
But how could they do that? At first I was thinking they could send a text to the phone number, and if you respond within 7 days, they will assume it's not stolen. But the problem with that is if the phone was stolen, then they would be letting the thief continue to use it, which ends up almost like the opposite scam (stealing the phone itself).
I'm not sure there are any great solutions to this, unless you're okay with opting into an extra-security category where you really are screwed if you actually lose your phone.