One of the articles I read in relation to this case (one of the links I posted earlier) indicated that the OU student took pictures, and got signatures that were then sent to the man in Dallas who apparently manufactured the licenses and then sent them back to the student. It's definitely a sophisticated process as you said MizSterious because one LEO was quoted as saying you need a jeweler's eyepiece (sorry forgot the exact term used) to see the mistakes in the IDs themselves...
If there were no huge demand by college students for these fake ID the operations would shrink.
And then prosecute the ID counterfeiters just as harshly as currency counterfeiters.