When Digital Wealth Creates a Physical Security Risk
For years, conversations about cryptocurrency security have largely focused on the digital world.
Passwords. Wallets. Phishing. Hacks. Online scams.
But a recent case reported by the BBC is a stark reminder that digital wealth can create very physical risks.
A businessman and his heavily pregnant wife were attacked in their home in Solihull by masked intruders. The man was beaten with hammers while his wife, who was seven months pregnant, was restrained and threatened.
The attackers eventually forced him to transfer hundreds of thousands of pounds in cryptocurrency.
Perhaps one of the most significant details was that the men inside the house appeared to be receiving instructions from another individual via video call, including directions to examine the victim's phone and identify his crypto holdings. BBC News
This was not simply an opportunistic burglary.
It appears to have been a targeted attack in which knowledge of the victim's digital assets translated into a threat against him and his family.
A growing physical threat
These incidents are sometimes referred to as "wrench attacks", where violence or the threat of violence is used to force someone to surrender access to cryptocurrency.
And the problem appears to be growing.
Chainalysis estimates that more than $30 million had already been stolen through violent crypto attacks by the middle of 2026. Home invasions accounted for 37% of documented incidents, up from 26% in 2023. Chainalysis
Research published jointly by the Metropolitan Police and TRM Labs also identified 17 reported wrench attacks in London between March and December 2024. Kidnap was the most common offence identified, followed by aggravated burglary and robbery. TRM Labs
The figures matter, but they shouldn't be used to create unnecessary fear.
They should prompt a different conversation about security.
The asset may be digital. The vulnerability may not be.
A crypto wallet can be extremely difficult to compromise technically.
The person who controls it is different.
That changes the nature of the risk.
For individuals with significant digital assets, security should therefore extend beyond protecting passwords, devices and wallets.
It should also consider how information about wealth becomes visible, who knows about it, what can be discovered online, everyday routines, home and travel security, and how family members could potentially become part of the risk picture.
The same principle applies more broadly to entrepreneurs, executives, family offices and high-net-worth individuals.
A sophisticated cyber security system cannot mitigate every threat if publicly available information allows someone to identify the individual behind the asset, establish where they live and understand their routines.
Digital footprint and physical security increasingly overlap
We often think about digital and physical security as separate disciplines.
Increasingly, they are not.
Social media posts, company information, property details, photographs, location data and seemingly insignificant pieces of information can collectively create a surprisingly detailed picture of someone's life.
None of this means people should disappear from public view or live in fear.
It means understanding what information is available and considering it as part of a wider assessment of risk.
Preparedness should be proportionate
Effective security isn't about turning a home into a fortress or allowing risk to dictate how somebody lives.
It starts with understanding exposure.
For someone holding substantial digital assets, that might include reviewing their public digital footprint, considering who knows about those assets, assessing home and personal security, examining predictable routines and ensuring family members understand what to do if something feels wrong.
The appropriate measures will be different for every individual.
The objective is not to eliminate every possible risk. That isn't realistic.
It is to identify vulnerabilities before somebody else does.
The attack reported by the BBC is particularly disturbing because of the violence inflicted on a family in their own home.
It also illustrates something increasingly important about modern security:
The asset may be digital. The threat can be very physical.
At SJ Group International, we work with organisations, individuals and families to assess risk, prepare for crisis and respond when circumstances become difficult.
Assess. Prepare. Respond.
Discuss your exposure
If digital wealth is changing your personal or family risk picture, explore our risk assessment and prevention support or contact SJ Group for a confidential first conversation.
Nick Shah in The Economist
Nick Shah's ransomware negotiation work features in The Economist's Secrets of a ransomware negotiator (24 July 2024). The article is available to Economist subscribers.
About the author: Nick Shah OBE, Founder and CEO of SJ Group International, brings over 35 years of experience in law enforcement, crisis response and corporate security.