By Mick Hanley, Head of Strategic Operations, Knight Protection
Digital assets have given many people greater control over their wealth. As interest has grown, so has criminals’ attention, and protecting those assets is now as much about personal security as cyber security.
For years, the conversation around protecting digital assets focused on passwords, wallets and apps. Those still matter. But the questions our clients now ask are different: if someone knows who I am, where I live and what I hold, what does that mean for me and my family?
This article sets out how crypto crime has changed, where the real risks lie for high-net-worth families and senior executives, and the practical steps that make you a much harder target.
What crypto crime looks like today
Crypto crime covers any offence that uses or targets cryptoassets, from investment scams and phishing to impersonation fraud, extortion and theft. Transfers are fast and usually irreversible, so a single mistake can mean a permanent loss. Online fraud remains common: in May 2026, police arrested ten suspects linked to a scam in which callers posed as police officers to obtain victims’ seed phrases, with one victim alleged to have lost more than £300,000 (ERSOU)
The rise of physical attacks
Criminals are increasingly using force to make victims hand over their assets. These are known as “wrench attacks”, as it is easier to threaten someone with a wrench than to break their encryption.
In October 2026, (BBC News) reported a serious UK case. In December 2025, three masked men followed a couple into their Solihull home, beat the husband and threatened his pregnant wife with a knife, while a fourth man directed events by video call. The husband was forced to transfer hundreds of thousands of pounds in crypto, and police believe the attack was planned and targeted (Decrypt).
The case is not isolated. Security firm CertiK verified 52 wrench attacks worldwide in the first half of 2026, involving around $124 million. Home invasions accounted for 20 of these, up from a single reported case a year earlier (Decrypt).
Where cyber and physical threats meet
The biggest shift we are seeing is the convergence of cyber and physical threats. A data breach can identify the target. Social engineering can establish their routines. Physical coercion can then be used to access the assets.
Exposed personal data. In 2026, breaches at hardware wallet makers Trezor and SafePal exposed the names, addresses and contact details of tens of thousands of customers. The concern is not only whether funds were stolen, but who now knows where crypto holders live. A leaked password can be changed. A home address cannot.
Wealth that is easy to spot. Criminals have more open-source information than ever: social media, company filings, property records, conference appearances and data leaks. Together they can build a surprisingly detailed picture of someone’s life, wealth and movements. It is no longer only celebrities who face this risk.
Social engineering. Most crypto fraud still starts with manipulation rather than hacking. Criminals impersonate banks, exchanges, police officers, colleagues and even family members, using urgency, secrecy and trust to push victims into acting before they think.
Theft of devices and seed phrases. A stolen phone, an unlocked laptop or a recovery phrase photographed and saved to the cloud can be all a criminal needs. Hardware wallets and written seed phrases are now targeted in burglaries in the same way as jewellery or watches.
Organised, layered gangs. CertiK describes a growing structure in which organisers buy data and coordinate logistics, while others carry out the attack. The Solihull case, with a fourth man directing events remotely, fits that pattern.
Family and household. When you become your own bank, your family, household staff and home become part of the security perimeter. Attackers deliberately use loved ones as leverage.
Q&A: How to avoid becoming a victim
Q: I keep my crypto in a hardware wallet. Isn’t that enough?
It protects you against online theft, which matters. But it does nothing if someone forces you to unlock it. Think of digital security and personal security as one plan, not two. Consider multi-signature wallets that need more than one approval, time delays on large transfers, and keeping only a modest amount in any wallet you could be made to open on the spot.
Q: How do criminals find out who holds crypto?
Through a mix of data breaches, social media, public records and loose talk. Purchase records from wallet makers, posts about trades or conferences, and visible luxury items all add to the picture. The single most effective step is simply not advertising your holdings, in the same way you would not advertise cash kept at home.
Q: What should I do about my online footprint
Review it as an outsider would. Make personal social media private, remove your home address from public listings where you can, and ask family members to do the same. Avoid posting real-time locations, travel plans or photos that reveal your home or routines. Check whether your email has appeared in a breach at haveibeenpwned.com.
Q: I’ve been told my details were in a wallet company’s data breach. What now?
Assume you will be targeted by phishing, and treat any contact about your wallet with suspicion. Change passwords and enable app-based two-factor authentication. Then look beyond the screen: is your home adequately protected, and does your household know what to do if someone comes to the door claiming to be a courier, engineer or police officer?
Q: How do I spot a crypto scam?
Watch for the four classic warning signs: requests for secrecy, pressure to act quickly, attempts to establish credibility, and appeals to trust. Promises of guaranteed or consistent returns are a red flag. So is anyone who moves the conversation to WhatsApp or Telegram, or offers to help you recover money you have already lost.
Q: Someone claiming to be from the police or my exchange has called about my crypto. Should I act?
No. The police will never call you unexpectedly to ask you to move crypto to a “safe wallet” or access your cold storage. No legitimate firm will ask for your seed phrase or private keys. Hang up and contact the organisation using details from its official website, ideally from a different phone.
Q: Where should I keep my seed phrase?
Offline and out of sight. Never store it in phone notes, cloud services or photos. Write it down, consider splitting it across two secure locations so neither half is useful alone, and keep it in a safe rather than a desk drawer. Never buy a second-hand hardware wallet.
Q: What can I do to protect my phone and devices?
Use different PINs for your phone and for wallet or banking apps, and enable biometrics. Be aware of people watching your screen in public, as shoulder surfing followed by phone theft is a common tactic. Keep software updated, avoid public Wi-Fi for anything financial, and consider keeping high-value apps on a separate device that stays at home.
Q: How should I protect my home and family?
Start with a professional assessment of your residence: access points, lighting, CCTV, alarms and a safe room or secure area. Agree a family plan for what to do if something goes wrong, and make sure staff know not to share information about you. Avoid talking about your crypto trading too, even in casual conversation. Vary routines where possible, and be alert to being followed home.
Q: What should I do if I am targeted or become a victim?
Your safety comes first; no amount of crypto is worth risking a life. If you are in danger, call 999. Report fraud and cybercrime to Action Fraud on 0300 123 2040 or at actionfraud.police.uk (in Scotland, call 101). Contact your bank or exchange immediately, preserve evidence, and be wary of anyone offering to recover your funds for a fee, as they are often the same criminals returning.
A joined-up approach to security
The people best protected are those who take a holistic view, rather than treating cyber security and physical security as separate issues. Protecting cryptocurrency is not simply about wallet security. It is about privacy, family safety and personal resilience.
When people contact us after incidents like these, they are usually looking for reassurance and advice before they are looking for security officers. They want to know whether their home is adequately protected, whether they are revealing too much online, and whether they have a plan if something goes wrong. That is exactly where a conversation should start.
If you would like to review your security arrangements in confidence, our team at Knight Protection is here to help.
Sources
Metropolitan Police Service, The Little Book of Crypto Crime (2024)
