Specifically, How does erc725, erc735 deter identity fraud?
These claims are typically verified by a trusted third party. Check out this article for some examples. The third party could be trusted DApp like AirBnB that provides email validation as a requirement for any transactions. Or the third party could be a DApp for address verification owned by the US Post Office. Etc.
Hopefully this sort of verification would greatly inhibit identity theft.