For $500 I'll take a quick trip to Van Wert and get info
Ain't but a quick 2 hours away.
Ok, no I won't. Not really.
But that being said, ICANN (not the domain registrar) requires that all information in a domain's registration be valid.
If any dispute arises (see the ICANN Uniform Domain Name Dispute Resolution Policy rules here) you will be contacted via the means specified in your domain registration. Notice that section 14 of the rules is a section that defines what happens as part of a 'default' (in other words, they can't contact you): They'll proceed with a judgement, and you won't get a say in the proceedings.
ICANN has the power to take a domain from you and give it to somebody else.
So if a scammer is using false info in their domain registrations...well, I don't think I need to stir this pot any more.