I think you're misunderstanding them. You two are basically discussing two (very important) topics.
On the topic of fraud prevention, the interviewer could simply ask the interviewee to be on camera for literally 5 seconds, then feel free to turn off video.
Again, this is based on an Upwork profile that already had a picture, so if discrimination was going to happen, it would be before the video interview stage anyway. This is just about a verification step, and in a platform like Upwork, refusing to be on camera for LITERALLY 5 seconds probably SHOULD be considered a big red flag.