KYC and KYCd accounts are a high volume item on the grey / dark net
it appears to not really do much at all
I think thst the goal of KYC is to get information about the entity opening an account, to e.g. make sure it isn't used for money laundering. Whether this account gets stolen later is out of scope for KYC.
right so its useless?
No, it's not: you still want to make it as hard as practically possible to criminals to launder money.
Speaking as a fraud detective, it appears to be completely ineffective.
Well yeah, you're only looking at the instances of fraud. You're not investigating fraud that never happened because it was prevented, that would be impossible.