An evolving security threat landscape for digital asset industry executives underscores the need for clear response protocols and effective insurance coverage, panelists on a recent Lockton webcast said.
Speakers on the panel described a sharp rise in both the frequency and sophistication of threats targeting leaders in the digital asset space. These risks extend beyond traditional cyberattacks, encompassing stalking, harassment, extortion, and increasingly violent tactics such as assault and kidnapping.
A particular example is the emergence of so-called “wrench attacks,” in which criminals use physical coercion to force victims to transfer digital assets. The attractiveness of such crimes is driven by factors including high potential payouts, the speed of crypto transactions, and a perceived level of anonymity.
Importantly, the threat environment is no longer limited to executives alone. Family members and employees are also being targeted as potential access points, broadening the sector's overall risk exposure.
Against this backdrop, panelists on Lockton’s webcast emphasized the need for proactive and layered risk management strategies. Effective preparation requires thorough risk assessments, the implementation of physical security measures at both corporate and residential levels, and the strengthening of digital hygiene practices.
Training programs, situational awareness, and clear internal policies are also critical components of a comprehensive mitigation approach.
Preparation must account for worst-case scenarios. In the event of a kidnapping or similar crisis, organizations need clearly defined response protocols, including “first call” procedures and coordination with appropriate security or law enforcement resources.
The complexity of operating across jurisdictions — particularly when incidents occur abroad — adds another layer of challenge, highlighting the importance of advance planning.
Insurance plays a pivotal role in supporting both prevention and response efforts, according to the panel. Specialized kidnap and ransom (K&R) policies tailored to digital asset risks can provide access to expert advisors before an incident occurs and deliver critical support during and after a crisis.
Watch a replay of the webcast (opens a new window) for more insights.
