Revolut ID Thefts Expose KYC Data Risks, Zero-Knowledge Fix Urged

The core issue is structural: KYC verification and data custody are bundled together, so every firm that onboards users becomes a breach target holding documents it never needed to retain. Zero-knowledge proofs could split verification from storage, but adoption is held back by compliance expectations that treat document retention as an audit requirement. The open question is whether regulators and firms treat this as a technology gap or a liability one — and whether identity verification migrates toward tools that never hold the underlying files.