Cryptocurrency thefts have hogged the headline as some of the crypto’s key characteristics reveal reasons why wealthy individuals who hold a lot of digital assets can be ripe targets for such attacks. Experts have advised ways to tackle the threats and safeguard the assets, as per a report.

The headline-grabbing tale of an Italian man who said he was kidnapped and tortured for weeks inside an upscale Manhattan townhouse by captors seeking his bitcoin highlights a dark corner of the cryptocurrency world: the threat of violence by thieves seeking digital assets. The alleged attempted robbery is known as a “wrench attack”. It’s a name popularized by an online comic that mocked how easily high-tech security can be undone by hitting someone with a wrench until they give up passwords, AP reported.

Wrench attacks are on the rise thanks in part to cryptocurrency’s move into mainstream finance, Phil Ariss of the crypto tracing firm TRM Labs said in a recent blog post.

Cryptocurrency TheftsStealing cryptocurrency is almost as old as cryptocurrency itself, but it’s usually done by hacking. North Korean state hackers alone are believed to have stolen billions of dollars’ worth of crypto in recent years.

In response to the threat of hacking, holders of a large amount of crypto often try and keep their private keys off the internet and stored in what are called “cold wallets.” Used properly, such wallets can defeat even the most sophisticated and determined hackers.But they can’t defeat thieves who force a victim to give up their password to access their wallets and move money.The case in New York is the latest in a string of high-profile wrench attacks. Several have taken place in France, where thieves cut off a crypto executive’s finger.

Ways to Tackle Cryptocurrency Thefts

Experts suggest several ways to mitigate the threats of wrench attacks, including using wallets that require multiple approvals before any transactions.

Perhaps the most common way crypto-wealthy individuals try to prevent wrench attacks is by trying to stay anonymous. Using nicknames and cartoon avatars in social media accounts is common in the crypto community, even among top executives at popular companies.

FAQs

Q1. What is world’s most popular cryptocurrency?
A1. World’s most popular cryptocurrency is Bitcoin.

Q2. What is ‘wrench attack’?
A2. The headline-grabbing tale of an Italian man who said he was kidnapped and tortured for weeks inside an upscale Manhattan townhouse by captors seeking his bitcoin highlights a dark corner of the cryptocurrency world: the threat of violence by thieves seeking digital assets. The alleged attempted robbery is known as a “wrench attack”.