A gotcha that I think's lurking here is that there's no opportunity to appeal the classifications you're bucketed into. Meaning that even if you give 'it' incorrect data, the way you get bucketed could still have a negative impact on your life.
Hypothetical, imagine your fake profile indicates you are a minority in some demographic dimension that is now out of favor politically. The dragnet would not really care if it happens to be true for you or not.
I'm recalling the Turkish cleansing of a local religious sect from all government jobs when its two leaders had a falling-out. This could happen in any country, imo.