Is kyc verification dangerous?

[Russlenat]

Is this true that kyc verification can put your funds and personal data at risk? Should we stop using any app that ask for kyc verification?

Services like casinos and exchanges need KYC to avoid money laundering and isn't an option for them to have it or not, is a must for them to operate in a legal way, business without KYC is kind of illegal.

And that's right, our data is at risk because if the exchange gets hacked then the bad guys can access all the credentials submitted by the users on the KYC process... And this is why some casinos and exchanges use a 3rd party for the KYC process.

KYC is certainly the trend right now, if you want to avoid it, then you will never be allow to enjoy the services you need. However, we should still take caution on where to submit KYC, because if you do that in all your desired services and exchanges, without making prior researches, then it’s never surprising that you end up giving your private information to scam ones. And that’s the part where one should start worrying of, as it can used against him later in the future.

[serjent05]

Hello guy, I was reading a thread on this forum
https://bitcointalk.org/index.php?topic=5221497.0.    recently and some other online blogs which said that kyc verification is extremely dangerous. If this is true, why do most crypto apps or other business ask for it, shouldn't it be banned or removed.
Most apps usually request for kyc verification before you can withdraw any coin or money from their wallets as this is very necessary to verify or certify you as a customer.
Kyc verification for long has helped prevent identity theft, financial laundering or fraud, terrorism and all financial crimes.

   


Any process that can expose or leak our identity is dangerous that is why most KYC are handled by a third-party licensed company that specialized in data protection but of course not everyone follow the rule so we better be vigilant on the website that are asking for KYC.

KYC is needed to know who are doing the transaction, it is believed to be needed in preventing money laundering but I wonder if it is effective.  

Is this true that kyc verification can put your funds and personal data at risk? Should we stop using any app that ask for kyc verification?

It can put personal data at risk since it opens the possibility for leak and hack.  but I do not think that we are able to stop using an application that asks for KYC especially when the application is needed for fund transfers.

[goldkingcoiner]

Hello guy, I was reading a thread on this forum
https://bitcointalk.org/index.php?topic=5221497.0.    recently and some other online blogs which said that kyc verification is extremely dangerous. If this is true, why do most crypto apps or other business ask for it, shouldn't it be banned or removed.
Most apps usually request for kyc verification before you can withdraw any coin or money from their wallets as this is very necessary to verify or certify you as a customer.
Kyc verification for long has helped prevent identity theft, financial laundering or fraud, terrorism and all financial crimes.
  
Is this true that kyc verification can put your funds and personal data at risk? Should we stop using any app that ask for kyc verification?

Of course KYC is dangerous. What happens when your identity gets stolen? Identity theft can be a devastating thing that happens to people everyday. Imagine someone you never met before taking a loan in your name? Really a bad situation to be in.

There needs to be a better alternative to KYC. One that cannot be faked and exploited like the current system.

I am sure that the solution is a blockchain one but until then, don't give strangers photos of your ID documents.

[Bobrox]

I don't know how many kinds of website have passed with KYC started from exchange market until several bounties campaign and airdrop joined ever upload with my document ID, in my country our document ID always become easy how leaking every time on government website and selling on the dark market. I am not really afraid when having submit document ID on several exchange market necessary.

There are not dangerous when you submitting KYC but looking on trusted some website before applying with your document, exchange market is  most required exactly with Binance have adopted KYC if want trading and withdrawing assets there, without passing KYC not ability withdraw or trading service there.

[TimeTeller]

Of course KYC is dangerous. What happens when your identity gets stolen? Identity theft can be a devastating thing that happens to people everyday. Imagine someone you never met before taking a loan in your name? Really a bad situation to be in.

There needs to be a better alternative to KYC. One that cannot be faked and exploited like the current system.

I am sure that the solution is a blockchain one but until then, don't give strangers photos of your ID documents.

The reason why you only submit to platforms that are reputable and only to the platforms that you think will frequently use.
Just like in crypto-exchanges, you can submit in only one or two top exchanges so you can do your trading.
But all the small ones, better not to submit KYC. As much as possible, limit your submission of your KYC docs.
These sites are requiring KYC owed to their business license. Otherwise, if they are not legit and are requiring KYC, doubt their motive about it.

[Dr.Bitcoin_Strange]

May be may not be, Sometimes intentionally imposed KYC can be dangerous but when it comes to the centralized platforms the KYC is imposed to expose the users activity which can be considered as the neutral point because as you sometimes it helps to recover lost or hacked funds and it proves its +ve impact in various ways. On the same point of plane the KYC can dangerous.

This is usually an agreement most of those platform owners sign before the government can give them a license to operate. Basically, most platforms don't impose KYC; users have the right to agree or disagree, which is why it is very important to read the terms and conditions of any platform before involving your funds in the platform (CEX). It can only look as if the KYC is imposed on you when you don't read the policy before using the platform, and when you later find out about the KYC, it then looks as if it's imposed on you. Please note that no KYC is more or less dangerous; KYC is KYC, and all the danger that comes after is the same unless an individual's details are protected. Some CEX or other platforms can protect a customer's KYC details, but they become insecure when the platform is hacked or is probably not reputable.

[Viscore]

It will only be dangerous if you submit your KYC to non-reputable crypto services or exchanges. But if you DYOR first before trying to submit your KYC, then that will prevent you from being abused from your own KYC details. KYC is unstoppable these days, as even small banks and small insurances are asking it, but what is more important is that you only pass your KYC if it’s really necessary, otherwise don’t bother submitting KYC.

[Botnake]

Is this true that kyc verification can put your funds and personal data at risk? Should we stop using any app that ask for kyc verification?

Services like casinos and exchanges need KYC to avoid money laundering and isn't an option for them to have it or not, is a must for them to operate in a legal way, business without KYC is kind of illegal.

And that's right, our data is at risk because if the exchange gets hacked then the bad guys can access all the credentials submitted by the users on the KYC process... And this is why some casinos and exchanges use a 3rd party for the KYC process.

Centralized exchanges have to abide with the rules made by the government and KYC should always be implemented legally. Though it’s quite risky to submit your personal details on an exchange or service, but if you want to use their service, then you have to provide it for them. However, if you think that providing KYC will become a threat for you in the future, you can always chose not to pass KYC and just settle with illegal means, which I think is more risky and more dangerous to deal with.

[albon]

Is this true that kyc verification can put your funds and personal data at risk? Should we stop using any app that ask for kyc verification?

The most worrying thing is that if you do a KYC verification and send your sensitive documents and information to a scam application or exchange platform, your KYC data will be in the hands of scammers, who may use it for criminal activities and financial fraud. They can use your information to steal your identity and open accounts on the platforms in your name. They can sell these documents on the dark web and get money from them, so you should do your research first and avoid sending KYC documents to suspicious or unknown parties from applications or exchanges or anyone who asks you to do so.

[Rikafip]

If this is true, why do most crypto apps or other business ask for it, shouldn't it be banned or removed.

Because by asking you to go through KYC/AML they are covering themselves and not you. If they don't ask for it, they will have governments on their ass so they will do everything they need to let them operate.

It will only be dangerous if you submit your KYC to non-reputable crypto services or exchanges. But if you DYOR first before trying to submit your KYC, then that will prevent you from being abused from your own KYC details.

There are dangers of doing KYC even on the most reputable exchanges and crypto services as none of them are foolproof, and some of them are probably even selling their users data. Take for example Ledger data leak; you would expect from company that is into security and that sells hardware wallets to know how to take care of data of their own users, while we know what happened in the end.

[Ryker1]

Hello guy, I was reading a thread on this forum
https://bitcointalk.org/index.php?topic=5221497.0.    recently and some other online blogs which said that kyc verification is extremely dangerous. If this is true, why do most crypto apps or other business ask for it, shouldn't it be banned or removed.
Most apps usually request for kyc verification before you can withdraw any coin or money from their wallets as this is very necessary to verify or certify you as a customer.
Kyc verification for long has helped prevent identity theft, financial laundering or fraud, terrorism and all financial crimes.
   
Is this true that kyc verification can put your funds and personal data at risk? Should we stop using any app that ask for kyc verification?

This is very common on the centralized app or platform, it is also a part of their business and they are forced to do this especially if they are licensed and fully regulated by the government --they must have a KYC/AML. It is a necessary step for ensuring the safety and security of financial transactions. As long as you use reputable apps and platforms and take the necessary precautions, KYC verification should not put your funds and personal data at risk. It is always wise to do your research before providing any personal information to an app or platform. Ensure that the app is reputable, has good reviews, and is transparent about how they handle and protect user data, and also provide only the necessary information required for KYC verification and avoid oversharing personal information.

[decodx]

Ah, the age-old question of KYC verification. I understand perfectly, it can be a little unnerving to hand over personal information like that. But the truth is, KYC is an important part of preventing fraud and other illegal activities and is actually a legal requirement in many countries and is designed to prevent fraudulent activities such as money laundering.

That being said, it's understandable to be cautious about giving out your information. And you should be. It's the only way to protect yourself from potential identity theft or fraud. To minimize your risk, it's important to do your research and only share your personal information with reputable companies. It's up to you to decide if the benefits of using a particular app or service outweigh the potential risks.

[AverageGlabella]

KYC is dangerous if you give KYC to every company I would only give my information to companies I trust. I bought a hardware wallet and had to give KYC but I think it was worth it to make my Bitcoin safe. I do not know if they keep the information on record or for how long they keep it in their records but I think you can send a email and request that they delete your information after a while. I think KYC is needed for most exchanges and I think that is the only things I would trust giving my information too.

[Adbitco]

First reading that thread and coming to make another thread to me I can see it to be spamming because all it takes for you to understand is purely stated over there.
Then back to your question, before you start anticipating anything online you should try as best as possible to provide your identity verification details. If you are afraid of releasing your personal data also as well to avoid associating your self online or alternatively you can just avoid by using those platform that doesn't require kyc to operate on their site.

[Oceat]

Ah, the age-old question of KYC verification. I understand perfectly, it can be a little unnerving to hand over personal information like that. But the truth is, KYC is an important part of preventing fraud and other illegal activities and is actually a legal requirement in many countries and is designed to prevent fraudulent activities such as money laundering.

That being said, it's understandable to be cautious about giving out your information. And you should be. It's the only way to protect yourself from potential identity theft or fraud. To minimize your risk, it's important to do your research and only share your personal information with reputable companies. It's up to you to decide if the benefits of using a particular app or service outweigh the potential risks.

That's the only problem I think handing your personal information to anyone which is kind of dangerous if fall by the wrong hands. It's true that it's needed as for verification to identify who's who but if you keep sending this information to any different company then you have a high chance of being a victim of an identity thief.

There are several pros and cons of handing your personal email for the sake of KYC but with Bitcoin you won't need to do the KYC thing. I'd prefer to use Bitcoin than use any other third party or banks that's asking for your personal information.

[Yatsan]

Dangerous indeed if you'd be doing it under unregistered and not acknowledged by communities, platform. Risk is for fraudalent sites to steal your information and use it for bad intentions or worse, steal your assets or savings by any chance. So if it is risky, why would it be required by some trusted platforms? One of the intentions I guess is to limit the accessibility against minors and to limit as well, easily withdrawing funds. Prevention is always better than cure so I have no problem with it. So far, I had no problems at all with undergoing Kyc procedures and maybe risk can be lessen if you'd be able to analyze the security of a platform which could be determined by factors such as its reputation in this industry as well as other users' experience.

[decodx]

There are several pros and cons of handing your personal email for the sake of KYC but with Bitcoin you won't need to do the KYC thing. I'd prefer to use Bitcoin than use any other third party or banks that's asking for your personal information.

It's like, yeah, KYC might have its benefits and all, but handing over your personal details to some random company just feels sketchy AF. That's why I'm all about using Bitcoin - you don't have to go through all that nonsense. It's just you, your wallet, and the freedom to do what you want with your money. No fuss, no muss!

[qwertyup23]

It is somehow of a double-edged sword- KYC is a guarantee and a requirement to most gambling websites and exchanges for their compliance with the government standards. In addition, this gives them the security that what they are dealing with is actually a genuine person that can be located in the event that the latter commits any illegal means and activity.

The downside is, this gives you vulnerability on your personal and contact information which can put you at the risk of data and personal information breach. The catch here is before you submit any KYC documents, make sure that you are providing this data to a genuine, legit, and real exchange or gambling website to avoid any unnecessary conflicts and problems in the future.

[Oilacris]

Hello guy, I was reading a thread on this forum
https://bitcointalk.org/index.php?topic=5221497.0.    recently and some other online blogs which said that kyc verification is extremely dangerous. If this is true, why do most crypto apps or other business ask for it, shouldn't it be banned or removed.
Most apps usually request for kyc verification before you can withdraw any coin or money from their wallets as this is very necessary to verify or certify you as a customer.
Kyc verification for long has helped prevent identity theft, financial laundering or fraud, terrorism and all financial crimes.
   
Is this true that kyc verification can put your funds and personal data at risk? Should we stop using any app that ask for kyc verification?

Dangerous on the sense that those companies or platforms been accumulating kyc information through those users and then somewhat been leaked nor been sold out on dark market then this is
where it should be considered to be dangerous and risk and this is why lots of people are really that keen on submitting or dealing up with things which does have
these verification.

This is why this decentralized and anonymous market becomes really that known and popular because people couldnt really be able to have that risk like identity theft or being
used due to misused of those passed up information.

[rozak]

Is this true that kyc verification can put your funds and personal data at risk? Should we stop using any app that ask for kyc verification?

if you are a person who wants to remain anonymous and are not comfortable with KYC, then you don't have to. if you are worried about how your trading might be disrupted, you can use a DEX exchange.
I don't mind the KYC I did for several exchanges or even the casino platform. if it concerns the security of our documents, it is clear when we allow third parties to access our documents, of course, there will be other factors that make our personal data insecure.
even in the real world, some banking companies or service provider platforms also ask for KYC. more and more people don't mind this.