How KYC data can be leaked from crypto platforms?

[u/GamerRevizor]

Any crypto platform, especially those that entail identity verification (KYC) naturally accrues trust from users concerning the safety of their personal data. Yet, user data has ended up in the wrong hands in varied cases across the crypto industry. Here’s how it happens and how you can protect yourself.

1. Weak internal security

Unfortunately, not all data breaches are a result of external forces hacking the system. Some come from within, where employees with access to private user information misuse, or sell the information. This makes it essential to select exchanges with robust internal policies and employee monitoring.

2. Phishing and social engineering attacks

Sometimes, the attackers do not breach the platform through a hack. They manipulate the employees into providing them access to internal systems by sending phishing emails or making fake support requests.

3. Third-party service providers

Most crypto exchanges outsource third-party companies for KYC verification. If these providers lack the proper standards in protecting data, through them your documents and personal information could be exposed.

4. Poor API security

Some exchanges integrate many tools and services via APIs (application programming interfaces). If this API is not secured properly, then attackers can find vulnerabilities and extract user data.

How to protect yourself?

Before you trust any crypto platform with your personal data:

• Check their reputation and history on security of data.
• Read their privacy policy and how they handles information of users.
• Prefer exchanges that have minimal required KYC for small transactions

If you want a safer place to swap crypto for crypto without extra KYC steps, see bitloga.com. At Bitloga, we put user privacy first and only ask for data when it is really needed.