This rule is just beyond absurd. Where I am based, not only are you to challenge the individual without the badge, but then you must inspect their badge and verify their name, picture, and that their badge is authentic and not expired, where the hell did I ever receive this training during my SIDA class!!??
I for one will NEVER challenge anybody without a badge. I will report it to the proper authorities, but never challenge. There is a BIG problem with using unarmed civilians to do police work. If the premise is that your are to challenge an individual because they could constitue a security breach or somebody who is up to no good, what the hell are you going to do if you DO actually challenge someone who has ill intentions on their mind? What if they are armed? Not a good place to be if they are trying not to be discovered.