A new danger now shadows the world of crypto. Holders of digital wealth have become targets. A series of recent attacks shows a clear trend. Criminals no longer only chase passwords. They now chase people.
Investors in the cryptocurrency have been kidnapped and violently assaulted. Victims are subjected to horrific methods as perpetrators strive to obtain digital wallets’ access. Some cases are even shocking to the already hardened watchers of the crime. A tourist in New York suffered weeks of torment, even torture.
Crypto executives and their families have been kidnapped in France. Such crimes are increasing. Cryptos are not part of conventional banking. Many accounts belong to individuals rather than organizations. Transactions are definitive and difficult to trace.
Crypto kidnap coverage hits the market
This creates an opportunity for malefactors. The price of Bitcoin rises, and with it the risk. Insurance companies have figured this out. They are now tailoring kidnap and ransom insurance for cryptocurrency-affluent clients. Three firms have begun writing policies designed to address these risks.
The service once focused on business executives. It now extends to holders of digital assets. AnchorWatch hopes to offer such protection soon. At a recent cryptocurrency event, safety was indeed a prominent concern. There was tension in the air. For many people, security feels like the next step in safeguarding their wealth.
Another company in the sector, Everts, believes there is potential in enhanced safety measures. The company encourages its clients to segregate access to their funds. It leaves a little money accessible, but most should remain in safe, offline storage. In case of trouble, a victim can divulge only a minimal amount.
The rising threat to crypto holders’ privacy
These measures also serve to deter. Knowing that a criminal will be aware that his victim cannot access all the crypto, the criminal will have less incentive. The idea is to make kidnapping a bad strategy. Other firms are developing similar policies. Realm does cyber defense as well as personal security.
The better the protection, the lower the insurance cost. However, the threat spreads anyway. Not all holders can stay anonymous. Some are leading crypto firms, and others are public speakers at events. They draw attention to themselves, whether they want to or not.
Even private investors can get exposed. A recent data breach by a big crypto exchange revealed names and addresses. In one fell swoop, the privacy of tens of thousands was breached.
As crypto wealth increases, so does the physical risk to it. What started as a form of digital freedom has now turned into a matter of real-world caution. Space is fast, but the danger is faster.
