Crypto is more than just a buzzword. Cryptocurrency ownership saw a 10 percent growth last year in the United States, according to Security.org. With that increased adoption of digital currency like Bitcoin comes understandable cybersecurity concerns. Outside of pressing cyber threats, experts are pointing to a concerning, growing wave of physical security attacks and threats targeting crypto owners.
In a recent piece for CryptoSlate, reporter and editor Liam 'Akiba' Wright sheds light on kidnapping and home invasions that have targeted those who possess crypto wealth. The events have underscored just how crucial it is that those who own and invest in crypto need to also keep their physical safety and security front and center. Even when discussing a very digital, modern asset like cryptocurrency, physical security has to be prioritized.
In the article, Wright highlights the February arrest of five Russian men in Phuket, Thailand who abducted a couple from Belarus. The kidnappers forced the couple to transfer what equates to a little over $901,000 in cryptocurrency as the terms of their release. Additionally, Wright discusses another incident — this one in Hong Kong — that saw two women arrested for allegedly kidnapping a little boy in exchange for HK$5 million in cryptocurrency.
Another example closer to home saw a United States-based gang convicted of carrying out a string of home invasions that directly targeted people who were crypto owners.
“Crypto holders are advised to enhance their security practices, including using multi-signature wallets, maintaining operational security, and limiting the disclosure of their digital asset holdings. The recent spate of violent incidents serves as a stark reminder of the physical risks associated with digital wealth, prompting a reevaluation of security protocols in the digital age,” Wright reports.
He added that those who have substantial crypto holdings should be absolutely vigilant about what they share online about their wealth and investments and physical location.
A tried and true security recommendation when it comes to social media in general: do not share real-time updates about one’s location or describe personal financial information on publicly accessible social media accounts.
“Further, many hardware wallets allow users to use separate pins to unlock different wallets. Setting up a honeytrap wallet containing negligible digital assets could enable victims to comply with attackers without relinquishing the majority of their holdings,” Wright adds.
Cryptocurrency will only continue to grow in popularity. As more people accrue significant crypto holdings, they have to be cognizant of the fact that this digital-based wealth can bring with it physical security risks and threats. Be mindful of the fact that these risks are not that different from those faced by people who have more traditional financial assets.