No it really isn't. How do I know? I have grown up in a country that had this my whole life.

Will there be "some" fraud? Sure, but unless your system is really broken it will be a drop in the ocean. Some abuse is the price of any universal thing. E.g. you all have public roads. Most people use public roads in spec. Some people abuse them, do burnouts, run overweight trucks over them, etc. Is that a reason to remove public roads? No. It is a reason to police them.

Some people throw trash into public parks, is that a reason to get rid of them? No.

Anything nice you will ever have will be treated unfairly by some. Taking that as an argument to not have it just makes sure you never have anything nice tho.