KYC in question. On May 15, Coinbase revealed that he had been the victim of a personal data leak from its users. Indeed, customer support employees have been corrupted and have sold hackers information on 70,000 customers. Following this incident, many voices were raised against aging and unsuitable (and therefore dangerous) processes of Identity verificationOr Kyc (Know Your Customer).
- Coinbase has undergone a leak of personal data affecting 70,000 customers, which relaunched the debate on the security of KYC procedures, deemed aging and dangerous.
- Technology ZK Proof seems an excellent alternative to protect user data, avoiding taking the risk of entrusting it to centralized platforms.
KYC is questioned following the Coinbase data leakage
THE Kyc Or Know Your Customeris a procedure imposed by regulators that Collect personal user information. This includes, in particular, in general, an identity document, proof of address and a selfie.
Although it officially aims to fight against the money laundering and the Terrorism financingsome see it above all a serious threat to privacy. Following the data leak of Cornerbasemany actors have questioned the use of kyc.
Indeed, the data collected by the platforms can be compromises and used by hackers. These sensitive databases are real « Saint Grail » for computer hackers. The pseudonym developer Banteg denounced on x these backward and poorly designed KYC procedures, which are crime facilitators by phishing (Hames) in particular.
« Why did Coinbase have kept the KYC images after verification? » This whole theater of unnecessary security measures must be abolished as quickly as possible. Many times, it only benefited hackers and extorters. KYC actually promotes crime. »»
The ZK Proof as a much more secure alternative?
Indeed, as we have already seen previously, with the Ledger data leak, this information can be used to make targeted attacks. These backward kYc procedures therefore make take risks to customers of centralized platforms.
Faced with this problem, some are considering the use of technology of the Zero Knowledge Proof (Zkp), Or Evidence with zero disclosure of knowledge in the language of Molière.
This technology that allows Prove information without having to disclose it. In the case of KYC identity checks, this would allow users to prove their identity without having to transmit their personal information to centralized platforms. Platforms that have demonstrated their inability not to be hacked by this information. Their huge sensitive databases being much more appetizing for hackers than pending on a case -by -case basis.
For his part, Coinbase tries to extinguish the fire by announcing that it has set up new safety measures to prevent This kind of unfortunate incident does not happen again. In the future, the track of Zero Knowledge Proof seems much more interesting for users, so that their sensitive information is not found from wherever they need to spend a kyc to verify their identity.