There are two important things that a casino has which can be a target for hackers, I learned this from the last discussion I started,
https://bitcointalk.org/index.php?topic=5538222.msg65280221#msg65280221The two are - Money which they have, and then the data they hold obtained from KYC.
There is concern about the two, but different levels of importance placed, I think. The data they hold and risk losing is more important to gamblers than the money the money they have, and then to the casino, I believe it will be that they have more importance to the money than the data of the many gamblers. Now based on this, do you feel a casino is more likely to be careless with people's data than they will with money to hackers because most hacks seem to target money they have more?
In my opinion, you answered the question yourself. If user data is less important for the casino, then of course, the security priority will be shifted in favor of money. This is another reason to avoid KYC in the casino as much as possible.
Counter question.
The regulator requires strict verification of KYC in the casino from users. Ok. But does the regulator require an equally strict security policy from the casino when storing user data? If you require one (KYC), then be kind enough to require the second (high level of security of user data). Including data protection from the casino itself (employees).
I accept that KYC verification is not safe for few reasons like what you are talking about, if the platform get hacked customers data can be stolen and the data can be use for many evil things behind the closed door but I want to ask this question because i have been thinking about it a lot.
We've been warned about attacks on this forum by hackers and scammers combined and proof have been shown or someone getting their wallet drained and they have to warn others but I've not seen anything related to stolen data that's been use to carry out some bad moves.
I remember when MySpace was attacked and many accounts get compromised, it was all about passwords related and that's it, have you seen where by a stolen KYC identity is been used for something very bad and landed the original owner into problem.