Crypto kidnappings on the rise as criminals resort to “wrench attacks”
The recent case of an Italian tourist who was kidnapped in New York City and tortured by criminals allegedly after his cryptocurrency has shed light on a disturbing trend known as “wrench attacks.” These attacks involve a combination of cybertheft and physical violence, with criminals resorting to brute force to obtain access to victims’ digital wallets.
The term “wrench attacks” originates from an XKCD comic that humorously illustrates how a simple $5 wrench can be used to coerce a crypto owner into revealing their account password. While the comic is meant to be lighthearted, the reality is far more sinister, as criminals have been targeting individuals with cryptocurrency holdings due to the lucrative nature of these assets.
Ari Redbord, a global head of policy and government affairs at TRM Labs, a crypto tracing firm, highlighted the rise in such attacks, attributing them to the increasing value of cryptocurrencies like bitcoin. With bitcoin trading at nearly $105,000 per token, criminals are drawn to the wealth that can be easily transferred through digital wallets without the need for sophisticated hacking skills.
The culture of flaunting wealth within the crypto community through social media posts and public appearances at conferences has also made it easier for criminals to identify potential targets. As the value of cryptocurrencies continues to rise, individuals with significant holdings become prime targets for criminals seeking to exploit the lack of security measures protecting digital assets.
While traditional thefts in the crypto space have typically involved hacking, criminals have realized that gaining access to a person’s crypto account password is often all it takes to steal their assets. Unlike traditional bank accounts, there are no third-party institutions standing in the way of accessing funds held in a digital wallet, making it easier for criminals to transfer wealth with just a few clicks.
The recent case in New York City, where an Italian tourist was allegedly kidnapped and tortured by crypto investors seeking to steal his digital wallet containing millions of dollars worth of bitcoin, serves as a stark reminder of the dangers posed by these wrench attacks. The victim was reportedly held captive for weeks, subjected to physical abuse, and forced to smoke crack cocaine in an attempt to access his cryptocurrency holdings.
Incidents of this nature have also been reported in Europe and Asia, indicating a global rise in violent crimes targeting individuals with cryptocurrency holdings. As the value of digital assets continues to soar, it is crucial for crypto investors to prioritize their security and take measures to protect their private keys from falling into the wrong hands. Several cases in France have recently come to light that mirror the harrowing attack in New York City, where crypto investors and their families have been targeted by criminal gangs. According to a report by the BBC, French police have arrested 20 individuals in connection with alleged kidnapping plots involving cryptocurrency investors.
One particularly alarming case involved a gang attempting to kidnap the daughter and young grandson of a cryptocurrency company executive in Paris. Additionally, just earlier this month, the father of a crypto millionaire was rescued by authorities in Paris after being kidnapped and held for ransom.
In light of these disturbing incidents, experts are advising crypto investors to take precautions to protect themselves and their families. One suggested measure is to maintain a lower profile to avoid drawing unwanted attention from criminals. Additionally, investors can enhance their security measures by implementing multi-factor authentication for accessing their digital wallets, requiring permissions from multiple individuals to prevent unauthorized access.
It is crucial for investors to remain vigilant and proactive in safeguarding their assets and loved ones, as criminals may be emboldened by the success of these recent kidnapping schemes. According to security expert Redbord, criminals are likely to replicate these crimes if they perceive them as lucrative opportunities.
As the threat of crypto-related kidnappings continues to loom, it is essential for investors to prioritize their safety and security. By staying informed and taking proactive measures to protect themselves, investors can mitigate the risk of falling victim to such heinous crimes.
The Associated Press contributed to this report.
Author: Aimee Picchi
Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports.
