Extortion scam warning

The federal government’s ScamWatch service has issued a warning to be on the lookout for an email extortion scam. The scam involves emails being sent to unsuspecting recipients advising them their computer’s webcam has been hacked. The scammers then claim to have used the webcam to record compromising footage of the victim, threatening to make it public. 

The scammers will demand money from the victim, saying they will carry out their threat if it is not paid. Victims will usually be asked to pay via bitcoin or some other form of cryptocurrency. 

What makes the extortion scam seem more realistic – and therefore more frightening – is that the perpetrator will often provide you with your personal information. This could be birth date, phone number or even a home address.

Could the extortion scam claims be real?

In some cases, the person attempting the extortion may even reveal one of your passwords. This is what happened to me. And, although I consider myself relatively tech savvy, this did cause me some alarm. 

The scammer in my case also claimed to have hacked into my computer and taken control of my webcam. They then claimed to have recorded footage of me watching online porn, even attempting humour with a comment along the lines of “You’ve been very naughty, haven’t you?”

I knew their claim could not be true, but then again, they knew one of my passwords. What was going on?

As explained on the ScamWatch website: “These personal details are most likely from previous public data breaches.” And you’re probably well aware there have been a few of those recently. 

ScamWatch has provided further reassurance on their website. “There is no evidence that the criminals sending these emails really do have access to people’s webcam or computer.”

What should you do?

The first thing you should do is change your passwords. Reading one of my passwords in an email from a total stranger was a real wake-up call for me. I now change my passwords often and use two-factor authentication where possible.

The second thing you should do is nothing. As counterintuitive as this may sound, the best thing you can do with an email extortion scam is ignore it. Don’t ever give money or personal information to anyone if you’re unsure. If you feel the need to do at least something, delete the email.

How the extortion scam works

Those perpetrating these scams will send out emails such as these to thousands of people. If they have a list of email addresses, along with identifiers (like a password), they can automate the entire process.

Even if only 1 per cent of recipients respond with payment, the windfall for the extortionist can be large. One per cent of an email list of 10,000 is 100. If 100 people pay even a relatively small amount – say $2000 – that’s $200,000 pocketed by the extortionist. 

Stay protected

ScamWatch recommends the following to help keep you protected.

STOP: don’t give money or personal information to anyone if unsure.

CHECK: contact a computer specialist if you have concerns about the security of your device.

PROTECT: if a scammer has taken your money or personal details, contact your bank or card provider immediately to report the scam. Ask them to stop any transactions. Information on how to avoid scams after a data breach is available on the Scamwatch website. Report scams to Scamwatch.

Have you received an extortion scam email? How did you respond? Let us know via the comments section below.

Also read: Government wants $50m fines for social media and telcos over scams

Disclaimer: All content on YourLifeChoices website is of a general nature and has been prepared without taking into account your objectives, financial situation or needs. It has been prepared with due care but no guarantees are provided for the ongoing accuracy or relevance. Before making a decision based on this information, you should consider its appropriateness in regard to your own circumstances. You should seek professional advice from a financial planner, lawyer or tax agent in relation to any aspects that affect your financial and legal circumstances.

Andrew Gigacz
Andrew Gigaczhttps://www.patreon.com/AndrewGigacz
Andrew has developed knowledge of the retirement landscape, including retirement income and government entitlements, as well as issues affecting older Australians moving into or living in retirement. He's an accomplished writer with a passion for health and human stories.
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