The KYC (Know Your Customer) process in airdrop campaigns, while essential for verifying participants, poses several security risks. First, collecting personal data like IDs and addresses increases the chance of data breaches if platforms lack robust encryption or are targeted by hackers. Second, phishing scams often exploit KYC requirements, tricking users into submitting sensitive information to fake sites. Third, centralized storage of KYC data creates a single point of failure, making it a prime target for cyberattacks. Additionally, unclear privacy policies may lead to data misuse or resale by unscrupulous projects. Finally, users reusing credentials across platforms heighten the risk of exposure if one site is compromised. To mitigate these, projects should adopt decentralized KYC, strong encryption, and transparent data handling practices—yet many fail to prioritize security over convenience.