We’re afraid of KYC because....

[Hatchy]

what real risks and SCENARIOS for their occurrence do you see in KYC? I’m specifically interested in the SCENARIO of what might happen and, in your opinion, how it would unfold step by step. Perhaps by analyzing these scenarios, we can find some solutions?

There are many possibilities when your kyc data is stolen and the most common one I can think of is the wrench attack. We saw alot of this kind of cases last year, where many crypto investors were attacked or had their families kidnapped and had to pay some ransom to get them released. This could be as a result of data leak or information we have shared with these gambling sites or centralized platforms in general. So yeah, there are so many risk involved with kyc and that's why you have to be careful where you put your personal information online. Some might say it doesn't matter much, but it never does until you become a victim and by then you won't even think about where it all started..

[xenomorfo]

In my opinion, the most dangerous thing which could happen to our information is getting it stolen by some hack group, and eventually that information being sold to other criminal organizations, so they can use our identity to launder money or commit other kinds of fraud, for example.
That is because most of the time that KYC information is just enough for one to sign up to casinos and exchanges, so realistically, if it gets stolen, other people could open casino and exchanges accounts o our name and use them to try to launder money.

When comes digital footprint, that is not as dangerous as someone getting access to our information data and a picture of our National identity card or drivers license.

does it seem little to you? they recently stole a lot of bitcoins imagine what they can do with our information
some are very delicate and important, like photos of documents for example
Who guarantees that they store them well? no one, when they are stolen the damage is done

[HustleZ]

The topic of the dangers or inappropriateness of the KYC procedure in the gaming sector has been raised here many times.
Here’s my take: the KYC procedure is potentially unsafe if this data is stolen or deliberately used by the platform for illegal activities. Yes, it also happens that platforms hire third parties to handle this procedure.
But here’s my question: it seems to me that the information on your driver’s license, for example, wouldn’t allow someone to take out a loan in your name, open a bank account, sell your real estate, or withdraw money from your bank card.
The only potential issue might be the process of de-anonymization - that is, if your anonymity is truly important to you.
But here we mustn’t forget how many "digital footprints" we’ve already left in other places - banks, the police, insurance companies, hospitals, employers....
Share your thoughts - what real risks and SCENARIOS for their occurrence do you see in KYC? I’m specifically interested in the SCENARIO of what might happen and, in your opinion, how it would unfold step by step. Perhaps by analyzing these scenarios, we can find some solutions?

I think KYC is mainly hated on is that most people dont want to share their information and stay anonymous,, crypto and crypto gambling allows a person to be pseudonymous thus fulfilling their main aim. They avoid KYC because of mainly phishing attacks and data breaches which leads to their data getting stolen or they avoid KYC because of their personal preferences. KYC makes it easier for hackers to gather info about people, it is also beneficial in many cases but mainly it is more suitable to avoid KYC

[DrBeer]

The topic of the dangers or inappropriateness of the KYC procedure in the gaming sector has been raised here many times.
Here’s my take: the KYC procedure is potentially unsafe if this data is stolen or deliberately used by the platform for illegal activities. Yes, it also happens that platforms hire third parties to handle this procedure.
But here’s my question: it seems to me that the information on your driver’s license, for example, wouldn’t allow someone to take out a loan in your name, open a bank account, sell your real estate, or withdraw money from your bank card.
The only potential issue might be the process of de-anonymization - that is, if your anonymity is truly important to you.
But here we mustn’t forget how many "digital footprints" we’ve already left in other places - banks, the police, insurance companies, hospitals, employers....
Share your thoughts - what real risks and SCENARIOS for their occurrence do you see in KYC? I’m specifically interested in the SCENARIO of what might happen and, in your opinion, how it would unfold step by step. Perhaps by analyzing these scenarios, we can find some solutions?

There is no doubt that the submission of our KYC to a crypto casino is not different from similar scenarios whereby we also submit these same documents when registering a bank account, an insurance details or when applying for a job both online and offline, whereby we are requested to submit that same document for verification and approval. However, when it comes to gambling platforms, people tend to look at it from a different angle, as some believe that such information can be sold to third parties, unlike a regular bank who wouldn't sell your details to scammers. So thats the reason why people don't always like to verify their identity on casinos. While secondly, another reason why people don't usually like putting their KYC on casinos is because they just want to gamble in secrets.

Let me clarify this - and it’s important:
Take a bank, for example - we often submit scanned copies of documents there, including our passport, provide our actual signature, leave our phone number and email address, and trust the bank’s software, handing over our money to them completely.
You don’t even know what’s happening to your money, and in some situations, it’s simply BLOCKED. They can also transfer funds to other accounts by compromising your phone or laptop, or simply by obtaining an OTP code. But… BILLIONS of people trust banks, even though theft from bank accounts is incomparably more common than theft from exchanges!

I’m still inclined to think that the key reason for the fear of KYC is the desire to remain anonymous ?

[Filicius]

I'm not an expert but I don't need to be either, or know all the possible scenarios in which submitting KYC would be a bad idea, to come to the conclusion that in general it's not a good idea to do it, for a simple reason: if so much effort has been made to regulate the processing of personal data as valuable and worthy of protection, it must be because they are.

All the reasons given so far should be enough to convince anyone that such data should not be blithely ceded, but we must even take into account that there are potential threats that we are not able to foresee, and yet in the future we will regret not having been more careful with our data.

[Localhostspeed]

But here we mustn’t forget how many "digital footprints" we’ve already left in other places - banks, the police, insurance companies, hospitals, employers....
Share your thoughts - what real risks and SCENARIOS for their occurrence do you see in KYC? I’m specifically interested in the SCENARIO of what might happen and, in your opinion, how it would unfold step by step. Perhaps by analyzing these scenarios, we can find some solutions?

I don't know why anything that has to do with crypto are always different. Since I have done kyc with traditional platforms and the casinos, I have never see my email found on one breach website, I haven't seen any traditional website that has sold my data or few of my details to anyone but since I started crypto, my email was found in many breach websites, my email is now a junk yard with phishing links just because I register and verified with them.

Crypto casino and other kyc related crypto platforms need to do better. I don't like kyc and giving too much information because you never can know who is behind a website but if it's necessary that I will have to do it, then I will do it, even though some people don't like kyc, there are some casinos you can't use without kyc and you have to do it or go to another one where you don't know anything about their services, they have their risk too.

[DrBeer]

what real risks and SCENARIOS for their occurrence do you see in KYC? I’m specifically interested in the SCENARIO of what might happen and, in your opinion, how it would unfold step by step. Perhaps by analyzing these scenarios, we can find some solutions?

There are many possibilities when your kyc data is stolen and the most common one I can think of is the wrench attack. We saw alot of this kind of cases last year, where many crypto investors were attacked or had their families kidnapped and had to pay some ransom to get them released. This could be as a result of data leak or information we have shared with these gambling sites or centralized platforms in general. So yeah, there are so many risk involved with kyc and that's why you have to be careful where you put your personal information online. Some might say it doesn't matter much, but it never does until you become a victim and by then you won't even think about where it all started..

The "wrench" technique, or "thermo-rectal lie detector", is certainly a valid method, no arguing there. But… it’s not used everywhere. No one is just going to show up with the technology described above to someone who plays at a crypto casino for $10 a day, and even that isn’t known (your crypto wallet details aren’t included in KYC). To start with, the person would have to disclose somewhere that they’re in possession of large sums of money. Only then do they become a target worth the risk. And sifting through millions of casino players is a pointless endeavor. And here’s the question: how does information about large crypto holdings end up in the hands of a malicious actor? Do you often write, even here - "Guys, I added another 10 bitcoins to my cold wallet today!" ? I’m sure - NOT EVEN ONCE!
So how does a criminal find out that there’s someone with significant assets? Let’s discuss it. But something tells me it’s not KYC....

[DrBeer]

I suggest we avoid bringing up the topic of "KYC = email leak = money stolen", as it isn’t directly related ONLY to KYC and existed long before KYC.

I agree.


Imho a KYC related list would be:
1. people associate it with giving the actual ID - perception problem
2. certain services may accept only ID (just thinking out loud, I may be wrong)
3. certain services ask for an identification with picture and also bill or document that shows clearly the address - imho this is a real problem, given that a mix of selling the data and this kind of data reaching places easy to hack may get some people into troubles
4. people avoid KYC because it can lead to tax, which some may try to avoid, especially when just converting between Bitcoin and altcoins

1. I agree
2. It’s a debatable issue, but personally, the most I’ve ever had to show was my driver’s license; they asked for my passport, but I had a choice
3. For proof of address, utility bills are sufficient - for example, on Interactive Brokers, which has significantly stricter requirements than a gambling site.
4. Yes, but it’s a delicate issue… In most countries, there are no taxes on players’ winnings. And in many countries, cryptocurrencies don’t even have legal status or taxation rules yet. Yes, these could be risks down the road.
 

I’d lean more toward "a desire for anonymity on certain platforms" due to concerns that people will find out about you, or real risks if you’re actually constantly using large sums on that platform.

[Z_MBFM]

The topic of the dangers or inappropriateness of the KYC procedure in the gaming sector has been raised here many times.
Here’s my take: the KYC procedure is potentially unsafe if this data is stolen or deliberately used by the platform for illegal activities. Yes, it also happens that platforms hire third parties to handle this procedure.
But here’s my question: it seems to me that the information on your driver’s license, for example, wouldn’t allow someone to take out a loan in your name, open a bank account, sell your real estate, or withdraw money from your bank card.
The only potential issue might be the process of de-anonymization - that is, if your anonymity is truly important to you.
But here we mustn’t forget how many "digital footprints" we’ve already left in other places - banks, the police, insurance companies, hospitals, employers....

The point of KYC is that someone else will take a loan from a bank with a person's personal documents or make such a financial transaction system, because not every bank allows them without verification of an authentic person. But the point here is that we do not want to submit our personal documents to a place that is not our profession or which is not important to us. That is why we are always worried about doing KYC on gambling sites. For example, in my country, crypto is not yet officially legal and gambling is also not legal, in this case, I am always afraid of doing KYC on these platforms. Because I always want to keep myself secret in these two places. And I think others also consider the issue of KYC in this way. That is why everyone expresses reluctance about KYC on gambling sites.

[Bitcoin Smith]

The curse of living in a country where privacy is not valued at all, my KYC is already deep in the shit and there is no going back, so I am less afraid of KYC anymore. I know the importance of it but as I said my national ID is probably leaked multiple times to bad actors, I can only hope it doesn't lead to anything serious for me.

That is quite sad so to say, but I just hope you are saved out there bro. But come to think of it, isn't it funny how this casino's will just ask for a customer KYC and at the end of the day they will fail to keep it save. This is a very serous issue and I pray someone didn't get into any serous mess through this because the way in which criminals are going with their activities is enough for someone to be extremely careful so that we don't fall into trouble. Hence this is just one main reason people find it challenging giving out their KYC when enrolling in a gambling platform.

There is always someone whose identity is sold for a $50 or more in dark web and to be honest, in my country people are willing to sell their KYC even for a dollar, another curse of a developing country. And I don't blame casinos if they got into a data breach because even government databases face leaks too often and they don't really care about the long-term outcomes of those leaks.

A casino wouldn't want a KYC detail in the first place but it is happening as a result of government/regulatory body made it as mandatory criteria.

[NeuroticFish]

3. For proof of address, utility bills are sufficient - for example, on Interactive Brokers, which has significantly stricter requirements than a gambling site.

I am under the impression that you missed my point here.
The utility bill proves your address and your name. Given that the initial source of information is a crypto service, somebody will know:
* that you have crypto
* what is your real name
* where you live
This is scary, no matter you have millions or you only have pennies.

[DrBeer]

3. For proof of address, utility bills are sufficient - for example, on Interactive Brokers, which has significantly stricter requirements than a gambling site.

I am under the impression that you missed my point here.
The utility bill proves your address and your name. Given that the initial source of information is a crypto service, somebody will know:
* that you have crypto
* what is your real name
* where you live
This is scary, no matter you have millions or you only have pennies.

This is undoubtedly critical information, but... I very rarely see websites where providing a residential address is a MANDATORY requirement.
Then again? if you really put your mind to it, you could provide someone else’s address? a receipt you stole, a rented apartment, or an empty apartment... In short, I agree that such a document does indeed contain critical information, but we have to admit that it’s rarely a KYC requirement.

But I’ll add this: information about your place of residence is held by:
- your bank
- your health clinic
- the police
- your insurance company
- … and many, many other sources that, until recently, were stored in paper form and were quite accessible

[Fortify]

The topic of the dangers or inappropriateness of the KYC procedure in the gaming sector has been raised here many times.
Here’s my take: the KYC procedure is potentially unsafe if this data is stolen or deliberately used by the platform for illegal activities. Yes, it also happens that platforms hire third parties to handle this procedure.
But here’s my question: it seems to me that the information on your driver’s license, for example, wouldn’t allow someone to take out a loan in your name, open a bank account, sell your real estate, or withdraw money from your bank card.
The only potential issue might be the process of de-anonymization - that is, if your anonymity is truly important to you.
But here we mustn’t forget how many "digital footprints" we’ve already left in other places - banks, the police, insurance companies, hospitals, employers....
Share your thoughts - what real risks and SCENARIOS for their occurrence do you see in KYC? I’m specifically interested in the SCENARIO of what might happen and, in your opinion, how it would unfold step by step. Perhaps by analyzing these scenarios, we can find some solutions?

It's worth considering the topic of KYC in the wider context of the internet, as there are now criminal repositories of data built up from various kinds of leaks and hacks that have occurred across different websites over decades. Maybe a casino does accept just a singular form of ID as proof of identity that protects you a little bit more, but they often require a secondary document like a bank statement or utility bill (maybe only when they do a higher level check). Fraudsters can be very smart and sneaky when it comes to gathering different parts of peoples identity and an identity check provider being hacked can absolutely unleash all sorts of problems for people. You're right that most of those things have become almost impossible to do, but that's at the top level of security, other things like running funds through a crypto exchange undergo less scrutiny but might end up with records against your name that the IRS might eventually discover and think you owe tax on. It's these less obvious things that can still cause big problems having your name associated to them.

[PostQuantumBTC]

4. people avoid KYC because it can lead to tax, which some may try to avoid, especially when just converting between Bitcoin and altcoins

This is just one of the reasons and I think it would be one of the main reasons that people prefer gambling sites that do not require KYC. The tax on huge winning in some countries especially those western countries is too much in a way that the government have nothing to lose but those that are losing will still have to pay tax if they win huge amount of money. Many people want this but at the end what they see is that they are losing while gambling.

Another that can happen is that when anyone win huge amount of money, the gambling site that called itself no KYC required will become KYC required when they tell the person to verify before he will be able to withdraw.

I do not mind if a gambling site require KYC or do not require KYC, what I like is trustworthiness of the gambling site.

[DrBeer]

The topic of the dangers or inappropriateness of the KYC procedure in the gaming sector has been raised here many times.
Here’s my take: the KYC procedure is potentially unsafe if this data is stolen or deliberately used by the platform for illegal activities. Yes, it also happens that platforms hire third parties to handle this procedure.
But here’s my question: it seems to me that the information on your driver’s license, for example, wouldn’t allow someone to take out a loan in your name, open a bank account, sell your real estate, or withdraw money from your bank card.
The only potential issue might be the process of de-anonymization - that is, if your anonymity is truly important to you.
But here we mustn’t forget how many "digital footprints" we’ve already left in other places - banks, the police, insurance companies, hospitals, employers....
Share your thoughts - what real risks and SCENARIOS for their occurrence do you see in KYC? I’m specifically interested in the SCENARIO of what might happen and, in your opinion, how it would unfold step by step. Perhaps by analyzing these scenarios, we can find some solutions?

It's worth considering the topic of KYC in the wider context of the internet, as there are now criminal repositories of data built up from various kinds of leaks and hacks that have occurred across different websites over decades. Maybe a casino does accept just a singular form of ID as proof of identity that protects you a little bit more, but they often require a secondary document like a bank statement or utility bill (maybe only when they do a higher level check). Fraudsters can be very smart and sneaky when it comes to gathering different parts of peoples identity and an identity check provider being hacked can absolutely unleash all sorts of problems for people. You're right that most of those things have become almost impossible to do, but that's at the top level of security, other things like running funds through a crypto exchange undergo less scrutiny but might end up with records against your name that the IRS might eventually discover and think you owe tax on. It's these less obvious things that can still cause big problems having your name associated to them.

I'm familiar with this "issue". More often than not, this kind of data isn't used to "steal money from a wallet", but rather to "steal a digital identity". In other words, to use existing data... to sign up for other services. That's something to think about. You can’t open a bank account with that kind of data, but it’s perfectly suitable for casinos, gaming platforms, and social media accounts. And that’s where the real risk lies - when your data is used, for example, for some not-so-good purposes. In this case and for this scenario, I agree, a data breach can lead to negative consequences!The question again is: where can this data be used?

[NeuroticFish]

This is undoubtedly critical information, but... I very rarely see websites where providing a residential address is a MANDATORY requirement.

I've seen not once crypto cards asking for this. But I agree, that's just a niche product.

Then again? if you really put your mind to it, you could provide someone else’s address? a receipt you stole, a rented apartment, or an empty apartment... In short, I agree that such a document does indeed contain critical information, but we have to admit that it’s rarely a KYC requirement.

Since the name must be the same as yours, unless you edit it if you're skilled enough, you need to also give a matching stolen ID, lol.

But I’ll add this: information about your place of residence is held by:
- your bank
- your health clinic
- the police
- your insurance company
- … and many, many other sources that, until recently, were stored in paper form and were quite accessible

In theory the government's institutions will not sell your data. But in reality see what has happened in the past year in France with bitcoin holders. Or what has happened this year with Romania's real estate agency hack. Yet, people are more comfortable to give that info to agencies or businesses that are known, established and maybe endorsed by the government. It's a reality. Not a great one.

Another that can happen is that when anyone win huge amount of money, the gambling site that called itself no KYC required will become KYC required when they tell the person to verify before he will be able to withdraw.

This is imho in many case an attempt for selective scamming.
I am (for some years now) under the impression that far too many businesses (not only in gambling!) mention KYC (not necessarily require it though) only to look more legit.

[Itz-prisigold]

I do not mind if a gambling site require KYC or do not require KYC, what I like is trustworthiness of the gambling site.

You're totally right mate, the trustworthiness of a casino matters more than whether or not the casino has KYC or no KYC. I believe the bigger issue is when the rules are not clearly stated out from the start. It is very understandable reason for a player to be suspicious when a site that offers a no KYC service, all of a sudden requires a great deal of verification after making a significant win.

I would not say that just because a casino asks you to perform a KYC after you win a big amount of money instantly mean that they are attempting to defraud you out of the winnings. There may be legitimate compliance reasons at times. Personally, what really matter is if the casino has its verification policy clearly stated before players make their deposits, and what will a player do that will really trigger for kyc.

[danadc]

My fear is the normal one that everyone has: that my data will start circulating online and that crimes could be committed with it. In my country, many people went to Colombia to have their irises cloned and were paid $50. That was about three years ago.

Currently, crimes have already been committed using the data of those people who provided their iris information. What's left with KYC now? Something similar. So, yes, it's dangerous for these simple and basic reasons.

[Proty]

We often failed to realise that kyc information are not in any way harmful by itself, it is only when someone other details are being gathered together with the kyc information that is when it will become an issue. Having someone id details may not be sufficient to use it to scam them unless when some essential details like emails, date of birth etc in such a case it will become a problem.
The main issue is how this platform store this data and how secured their data based is , if an unauthorised person can be able to have access to it.
Therefore the main issue isn't whether kyc leads to identity theft but rather the main issue should be focus on what will  occur if this data isn't secure by this platform. This is when the risk comes in.

[Ojima-ojo]

I'm not an expert but I don't need to be either, or know all the possible scenarios in which submitting KYC would be a bad idea, to conclude that in general it's not a good idea to do it, for a simple reason: if so much effort has been made to regulate the processing of personal data as valuable and worthy of protection, it must be because they are.

All the reasons given so far should be enough to convince anyone that such data should not be blithely ceded, but we must even take into account that there are potential threats that we are not able to foresee, and yet in the future we will regret not having been more careful with our data.

Crypto casino KYC is not as dip as you guys think it is, and not like an exchange KYC because on exchange you need to submit your personal documents like license, international passport or even you other valid IDs, this is where we may see the unforseen incident that you are talking about, casino highest I give out is my email and phone number verification; I won't give any casino other documents that I feel could be exploited if scammers get access to them, so is good to always apply caution to whatever step you may want to take as far as KYC verification is concerned.