remembering that your proof of residence has it your home address, so that makes it easier for scammers besides you to steal money at the casino he can also get to your house and steal and kill you, that's because if the scammers see that you are a big whale in his casino so he already knows that in the real world you have a lot of money. are things that scare
That is good advice for rich people. But not really something that 99% of us need to worry about in our life. Worst case scenario, you brag about being rich on the internet and the "bad people" dox you and break into your 3-room apartment because they believed you. Now once they find out you have no riches, they might do something bad to you out of revenge. There are enough scummy people in this world.
But I do agree with the KYC part. That is very sensitive information, which should be handled with care.