Physical Custody Risks

Physical custody risks pertain to the dangers associated with the physical storage and handling of devices containing sensitive cryptographic data. Even when systems are air-gapped, the physical hardware, such as USB keys, cold storage cards, or server modules, remains a target for theft, destruction, or unauthorized access.

Organizations must implement rigorous physical security, including vaults, surveillance, and multi-person access requirements, to mitigate these risks. If a physical device is seized, the attacker may attempt to bypass security layers through side-channel attacks or hardware manipulation.

This is particularly relevant for high-value institutional accounts where the physical device itself is the ultimate gatekeeper. Protecting the physical integrity of these assets is as important as the cybersecurity measures surrounding them.

A comprehensive risk management strategy must address both the digital and the physical vectors of potential compromise.