Thugs Target Victims for Digital Currency Theft
In the latter half of 2021, victims found themselves at the mercy of criminals who utilized a combination of physical threats and cyber expertise to steal tens of thousands of pounds’ worth of digital currency. The City of London police shared Freedom of Information data with The Guardian, shedding light on the alarming trend of individuals being coerced into unlocking their smartphones to access their virtual assets.
Modus Operandi of Criminal Gangs
The report highlighted several anonymized incidents that exemplify the opportunistic nature of these crimes. In one case, a victim had their phone confiscated by muggers while attempting to hail a cab. The perpetrators proceeded to transfer £5000 of Ethereum from the victim’s Coinbase account before returning the device. Similarly, in another incident, a man was forcibly restrained as assailants used facial recognition to unlock his phone and siphon £6000 of Ripple from his account.
These brazen thefts sometimes result in substantial losses. One chilling account described a man being accosted while incapacitated under a bridge. The perpetrator coerced the victim into unlocking his phone with a fingerprint scan and absconded with over £28,000, including cryptocurrency. In another distressing scenario, pickpockets operating in a pub managed to snatch a smartphone, leading to the theft of £10,000 from the victim’s Crypto.com account, possibly through prior observation of the victim’s PIN.
Challenges Faced by Law Enforcement
While blockchain technology theoretically enables investigators to trace the path of transactions, the City of London police admitted that resource constraints limit their ability to pursue cases involving relatively modest losses. However, consolidating these individual incidents and identifying links to organized crime networks could potentially warrant a more extensive investigation.
Given that these incidents occurred within the jurisdiction of the City of London police, the actual prevalence of such crimes across a wider geographical area may be even more significant. Enhancing public awareness will be crucial in combating this growing threat.
Empowering Users to Safeguard Their Assets
Phil Ariss, head of the National Police Chiefs’ Council cryptocurrency team, emphasized the importance of exercising caution when dealing with crypto assets. Drawing a parallel to physical currency, he advised against openly flaunting digital assets in public, as it could attract unwanted attention from criminals.
As law enforcement agencies grapple with the evolving landscape of cybercrime, collaboration between authorities and the public will be essential in deterring such illicit activities and protecting individuals from falling victim to these sophisticated schemes.