Some percentage of every population are essentially stateless, unbanked, passportless, etc..
Some of those are criminals and some do quite well while existing outside of government ID.
Off-the-book services for fake ID's and whatever else is needed to secure accomodation, or other ID-dependent services for daily life certainly exist.
A global black market estimated at $1.6 to $2.2 trillion annually couldn't exist without it.