Civic’s blockchain-based identity NFT platform, leveraging Civic Pass and Identity.com, offers secure KYC and AML solutions for Web3 applications. However, cross-chain data leakage poses significant risks. Since KYC data is stored off-chain with on-chain attestations, vulnerabilities in cross-chain bridges or smart contracts could expose sensitive user information. Weak encryption, validator misconduct, or interoperability issues may lead to unauthorized access to personally identifiable information (PII). Additionally, inconsistent regulatory compliance across chains increases the risk of data misuse. To mitigate these threats, Civic must enhance encryption protocols, ensure robust validator incentives, and implement privacy-preserving technologies like zero-knowledge proofs to safeguard user data while maintaining seamless cross-chain functionality.