how reliable is this verification method?
in the case of credit card verification, complete KYC is mandatory, right? Otherwise, a stolen card can be verified very easily.
This is one of the methods, most widely used, but not a single one.
It is used due to the business specifics and is mainly aimed at avoiding a widespread fraud scheme, the so-called “triangle”, when the victim is fraudulently asked to transfer funds to the details of the exchanger and receive cryptocurrency for this from an unsuspecting exchanger, framing it before law enforcement agencies when this fraud is revealed.
allowing editing due to blurring of the expiring date opens up the possibility of manipulation for someone with skills in photoshop, for example.
As a rule, the integrity of the image is checked, and interference with any parts other than valid numbers will be revealed during the check. But often, operators are asked to close the numbers physically (with a finger, a sheet of paper) in order to analyze also the complete lack of editing in the meta-data of the image.
They don't have to abuse this personal information, but that can also happen because you can't guarantee it won't, however there is high probability that sometime in future this data can be hacked.
We don't know who exactly is storing this data. We don't know who exactly is using this data and if they are sharing it with other third parties. We don't know anything.
It would be short-sighted to keep such information longer than the period necessary for verification and also to store it in storage with constant access to the network. We do not monitor the internal policies of exchangers, however, we are also not aware of any high-profile leaks. Thank you for your comment, perhaps we should issue recommendations for the administration of these resources so that they take your comments into account when storing and processing critical data.
Hiding expiry date and CVC is not a bad idea, but I bet many people are not doing it or they are not doing it correctly.
Unfortunately, we cannot predict this or somehow influence financial literacy, except for such posts.