A hacked/leaked personal information is more harmful than getting robbed.
What could be so worse than getting robbed? But I understood what you are talking about. KYC is extremely dangerous, that is true. If the data is leaked and hackers know about it, no one knows who could be the victims of a phishing attack, even if someone is able to avoid those types of online attackers, how about physical attackers. You are not wrong.
People should know that KYC does not mean safety nor guarantee security, only the advantage is that if someone have access to its email and forgot his or her password, he can be able to easily reset its password and be able to have access to its account.
It seems you didn't get what it's about. If the data is leaked or the hacker is able to get the data then you don't know what they will do with the data. They could sell the data to criminals or they use it for criminal activities. If that happens then it is called identity theft. That's why it is worse than getting robbed since they only take your things, money and you won't face any criminal record for that. Don't know why you didn't think that there's a possibility that the leaked data will be used for criminal acts. That's what it's all about and what it's called that PX-Z explained why it's worse than getting robbed.