TRIO wallet is a self-custodial, named crypto wallet for Ethereum-based networks.
In my previous post - TRIO Wallet - the Freedom from Fear, I have outlined the five issues resolved by TRIO:
1. the fear of losing it all, including losing the wallet altogether or losing the "password" to your wallet.
2. the fear of losing some, including making erroneous transfers due to honest mistakes and deliberate transfer fraud.
3. the fear of criminals, including the infamous "5-dollar-wrench attack" and ransomware attack.
4. the fear of hackers, including stealing your private key
5. the fear of fear, including mistrust in technology and failed promises.
In this post, I will address the third one, namely the fear of criminals.
The 5 Dollar Wrench Attack
A $5 wrench attack is the most primitive form of cryptocurrency theft, involving the threat or use of force to procure coins. As its name suggests, this attack can be carried out with a simple tool or a $5 wrench from a hardware store. This type of attack can be defined as any physical attack or threat against you to hand over your wallet's private key. This can become an issue if an individual or entity finds out that you own a significant amount of crypto coins.
$5 wrench attacks seem somewhat odd in a world of advanced cybersecurity and hackers, though victims are no less harmed. Unfortunately, no matter how secure your funds are in your hardware wallet or on your computer, no computer security can save you from this type of attack. Violent attacks on cryptocurrency holders are not new. Security experts have warned about them since the earliest days of the Bitcoin boom and even before.
Unfortunately, since cryptocurrency transactions are immutable and pseudonymous – at least – it is hard to catch the attacker once you give them access to your private keys to stop the beating.
5 Dollar Wrench Attack Precedents
A 5 Dollar Wrench Attack is not some random exaggeration or paranoid speculation. Cryptocurrency holders have suffered this kind of attack before.
On February 10th, 2019, a 39-year-old Bitcoin trader was brutally attacked in his house. His 4-year-old daughter was there. The attackers locked the girl in a room and proceeded to drill holes in the trader's leg. They also waterboarded the trader and hung him by his neck. The attackers were after his cryptocurrency.
At least eight men, including a police officer, were arrested in the city of Pimpri-Chinchwad, India, for allegedly kidnapping a crypto trader and demanding ransom. The arrested officer, Constable Dilip Tukaram Khandare, reportedly learned of the trader's 300 crore rupee ($40.13 million) crypto wealth via access to confidential data while working in the cybercrime department. The trader was let go after his friend filed a missing person report that prompted Khandare, who feared repercussions, to release him.
Similarly, four assailants allegedly broke into American tech entrepreneur Dentzel Zaryn's home in Spain and attempted to coerce him into giving up his private keys. The tech entrepreneur reportedly holds $58 million worth in Bitcoin across his wallets, with a significant portion of funds concentrated in one account. When Zaryn refused, he was subsequently tortured until he revealed the account information. The assailants left the property shortly after.
A crypto trader in Hong Kong was kidnapped by triad gang members who demanded $30 million Hong Kong dollars ($3.85 million) in ransom. Police managed to raid the kidnappers' residence and rescue the trader, but not before being held in captivity for over a week — including being beaten with hammers during interrogations. According to reports, kidnappers first demanded an $8 million ransom in Hong Kong dollars ($1.03 million), which was only raised to $30 million Hong Kong dollars after the triad discovered the victim had a lot of in his account. "It's maybe best to stay silent, keep a low profile, especially online, and make up a cover story if ever prompted about what you do," writes Dr. Anon, "even if you have a decoy wallet, criminals could always get the wrong impression about your financial status and demand a ransom greater than your entire net worth, and it'd be pretty tough to get out of that one."
How to Protect Yourself From $5 Wrench Attacks
The easiest way to prevent this type of attack or abuse is to keep all of your data private. This is hardly novel, as informing others of large cash reserves is also a recipe for disaster and theft.
If you own large amounts of crypto, it's best to avoid bragging about large gains, trades, or holdings. This type of information is highly sensitive. This information reaching the wrong person can also create problematic situations that place you and your crypto holdings at risk.
In addition, holders of large amounts of cryptocurrency can also create dummy wallets. This acts as a separate wallet using a different set of private keys.
This can help convolute your financial situation without jeopardizing your actual wallet.
Finally, owning any expensive asset is a welcome opportunity to improve your home security. $5 wrench attacks are predicated on physical threats or abuse.
It is important to stay safe and shielded from hard, with home security systems providing a helpful defense.
Ransomware attack.
The criminals may attack remotely using ill-famous ransomware attacks. Usually, they require paying ransom in crypto to their anonymous address. This is the reason that many stakeholders demand to outlaw crypto altogether as a safe haven for criminals.
TRIO token solution.
But imagine that your worst nightmares come true, and a "5-dollar-wrench" attacker is in front of you or a ransomware attack encrypted your data. The criminals order you to transfer your crypto to their address. You open your wallet, pass through all security gates and authorize the transaction. You are about to lose all your money without the ability to recover it because you have approved the transaction. Will TRIO help you? YES! The TRIO token transaction will FAIL, thus making the attack FUTILE!
Stay tuned!
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