Any casino needs customers, so casinos are interested in being as loyal to their customers as possible to keep them. The passage of KYC is regulated by law, while casinos must ensure that there is no fraud during the passage of KYC and all user data is stored in a safe place.
Let me ask this question for clarity's sake, when you say casinos should avoid fraud in the KYC process what do you mean?
-I think the issue of fraud during KYC is related to the player and not the casino itself, and if to talking of hacking that results in identity theft from the casino KYC data base, that can only be tackled by the casino having a strong security to ensure avoidance of hack.