Rising Threat of Phone Theft Targets Cryptocurrency Investors, Resulting in Huge Losses
In the UK, phone-snatching incidents have reached epidemic proportions, with over 225 devices stolen daily. For some victims, like Toby Atkinson, the consequences of having their phone swiped go far beyond losing an iPhone. Atkinson, who had been out drinking in Shoreditch, found himself the victim of a "cryptomugging," a crime where thieves steal smartphones from cryptocurrency investors and drain their accounts of significant sums.
The 30-year-old had spent years investing in digital currencies, turning a small birthday gift into a fortune. However, when his phone was taken, so were his life savings of £750,000, all stored in a crypto app without additional protection. “I chased him down, but I didn’t realise there were two other men behind me. They had a machete and a knife. I was forced to watch as they emptied my accounts,” he recalls, visibly shaken by the ordeal.
Cryptocurrency, being a decentralised form of digital money, is particularly vulnerable to theft. Once the thieves had access to Atkinson's phone, they could transfer the funds instantly with just the passwords stored on his device. These irreversible transactions make digital currency a prime target for criminals. Experts have warned that such crimes are as damaging as any physical robbery, yet the stolen assets can't be retrieved once transferred.
Unfortunately, Atkinson's case is not isolated. Sam Kelly, another victim, had his phone snatched in Hackney while ordering an Uber. Though he chased the thief for several blocks, the criminal managed to escape. Despite Kelly's quick action to deactivate his accounts, the muggers had already drained his crypto wallets. “I still don’t know how they managed to get in so fast,” says Kelly, who had security measures in place but suspects the thieves accessed his passwords stored on his phone.
Both victims reported their cases to the police, but received little assistance. For Atkinson, no criminal investigation was launched into the theft of his digital assets. Meanwhile, Kelly, despite being more fortunate in recovering part of his losses, found little support from authorities, with his case largely ignored.
The lack of legal protection for digital currency is a major issue in the UK. Unlike traditional bank accounts, which are protected by regulations, cryptocurrency transactions are not regulated, leaving investors vulnerable to such crimes. Despite this, some specialists argue that with the right tools, law enforcement could trace stolen crypto transactions, though time is crucial.
While Kelly was able to recover some of his funds, Atkinson is still grappling with the emotional and financial consequences of the theft. “It wasn’t just the money,” he reflects. “All my personal data, my photos, emails... it’s all gone. I felt completely violated.”
As the threat of cryptomuggings continues to rise, experts urge cryptocurrency investors to take extra precautions, treating their digital assets with the same care as physical money. As for the victims, it’s clear that the cost of these crimes is far greater than just the value of the stolen phone.
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The first day’s journey was through the pink fields
The first day’s journey was through the pink fields