Off-chain risks are increasingly prominent, how can encryption users cope with "wrench attacks"

With the development of blockchain technology, we often focus on security issues such as on-chain attacks and smart contract vulnerabilities. However, a series of recent events remind us that off-chain risks are becoming increasingly severe and cannot be overlooked.

Last year, a crypto billionaire recounted his experience of a kidnapping attempt during a court hearing. The attackers tracked his movements using GPS, forged documents, and other means, attempting to take him captive. Fortunately, the entrepreneur resisted in time and was able to escape.

As the value of encryption assets continues to rise, violent attacks targeting crypto users have become frequent. This article will delve into the methods of such attacks, review typical cases, explore the underlying criminal networks, and propose practical prevention suggestions.

The Nature of a Manipulation Attack

The so-called "wrench attack" originates from a piece of online comics. It describes a scenario where the attacker does not use advanced technology, but rather employs simple violent threats to force the victim to hand over their password or assets. This method of attack is direct, efficient, and has a low threshold, making it quite common in reality.

Typical Case Review

Since the beginning of this year, there has been a surge in kidnapping cases targeting encryption users, involving core members of projects, industry opinion leaders, and even ordinary investors.

In May this year, French police successfully rescued the father of a kidnapped cryptocurrency tycoon. The kidnappers demanded a huge ransom and subjected the hostage to torture. Similar cases had already appeared earlier this year: in January, a co-founder of a well-known hardware wallet company and his wife were attacked at home by armed assailants, and the kidnappers also committed extremely brutal acts.

Another shocking case occurred in New York. An Italian encryption investor was lured and subjected to three weeks of captivity and torture. The criminal gang used various means to threaten the victim, forcing him to hand over his wallet private keys. Even more concerning is that the perpetrators were actually "insiders"; they accurately identified the target through off-chain analysis and social media tracking.

In mid-May, a relative of a co-founder of a certain encryption trading platform was nearly kidnapped on the streets of Paris. Fortunately, the timely intervention of passersby prevented the criminals from succeeding.

These cases indicate that, compared to complex on-chain attacks, off-chain violent threats are more direct and effective. It is worth noting that those involved in such crimes are mostly young people, who often possess basic encryption knowledge.

In addition to publicly reported cases, the security team also noticed that some users encountered coercion during offline transactions, leading to asset losses while collecting user feedback. Furthermore, there are some "non-violent coercion" incidents, where attackers threaten victims by mastering their private information. Although these situations have not caused direct harm, they have touched upon personal safety boundaries.

It should be emphasized that the disclosed cases may only be the tip of the iceberg. Many victims choose to remain silent for various reasons, which also makes it difficult to accurately assess the true scale of off-chain attacks.

Criminal Chain Analysis

According to research from Cambridge University, the criminal chain of wrench attacks usually includes the following key links:

1. Information Locking: Attackers start with on-chain data, combining social media information to initially assess the scale of the target assets.

2. Real-life positioning and contact: After determining the target identity, the attacker will attempt to obtain information about their real-life activities, including residence, daily activities, etc.

3. Violent threats and extortion: Once the target is controlled, attackers often use violent means to force them to hand over critical information such as wallet private keys and mnemonics.

4. Money Laundering and Fund Transfer: After obtaining the private key, attackers typically quickly transfer assets and attempt to cover up the source of the funds.

Countermeasures

In the face of wrench attacks, traditional methods such as multi-signature wallets or decentralized mnemonic phrases may not be practical. A more secure strategy is "give something in return, and ensure losses are controllable":

• Set up an induced wallet: Prepare an account with only a small amount of assets for "stop-loss" in case of emergencies.
• Strengthen family security management: Family members need to understand basic asset safety knowledge; set up a security code for transmitting danger signals; enhance the physical security of the residence.
• Avoid identity exposure: Manage social media information carefully and avoid revealing the fact of holding encryption assets in real life.

Conclusion

With the rapid development of the encryption industry, KYC and AML systems play an important role in enhancing financial transparency. However, there are still many challenges in the implementation process, especially regarding data security and user privacy.

It is recommended to introduce a dynamic risk identification system based on the traditional KYC process to reduce unnecessary information collection. At the same time, the platform can integrate professional anti-money laundering and tracking services to enhance risk control capabilities. In addition, strengthening data security capability construction is also crucial, which can be achieved through professional security testing services to comprehensively assess potential risks.