Codex/Cyber & Technical Scams/Password Extortion Scam
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Cyber & Technical Scams

Password Extortion Scam

Medium Risk

Emails claiming "I have your password" and threatening to release embarrassing webcam footage unless you pay Bitcoin — usually a bluff using passwords from old data breaches.

Reported Losses

Part of $178 million in extortion losses (FBI 2024)

Primary Targets

Anyone with email, especially people who reuse passwords

Last Updated

2026-01-07

Also Known As

Sextortion Email

How Scammers Contact You

Email

How This Scam Works

Scammers send millions of emails trying to scare recipients into paying.

**The email typically claims:** - "I've hacked your computer and recorded you watching porn" - "I have access to all your accounts" - Shows one of your OLD passwords as "proof" - Demands Bitcoin payment within 24-48 hours - Threatens to send video to all your contacts

**Where they get your password:** - Data breaches (LinkedIn, Adobe, etc.) - Password dumps sold on dark web - Phishing attacks - They DON'T actually have webcam access

**Why it's effective:** - Seeing your real password is shocking - Many people HAVE watched porn and fear exposure - Shame prevents people from asking others for advice - Bitcoin payment is untraceable - Deadline creates urgency

**The reality:** These are almost always bluffs. Scammers send millions of emails hoping a small percentage will pay out of fear.

Red Flags to Watch For

  • ⚠️Email claims to have recorded you via webcam
  • ⚠️Shows an old password you recognize (but no other proof)
  • ⚠️Demands Bitcoin payment
  • ⚠️Threatens to send video to contacts
  • ⚠️Short deadline (24-48 hours)
  • ⚠️Generic email — doesn't mention specific details about you
  • ⚠️Same email sent to millions of people
  • ⚠️No actual video or images attached as proof

📝 Real Victim Account

"I got an email with my LinkedIn password from 2012 saying they'd recorded me through my webcam and would send the video to everyone unless I paid $2,000 in Bitcoin. I panicked because it was my real password. A friend told me it was a bluff — my password was leaked years ago and they had nothing else. I changed my passwords and nothing ever happened."

FBI Public Service Announcement

How to Protect Yourself

  1. 1Don't panic — these are almost always bluffs
  2. 2Never pay the ransom — it won't stop future emails
  3. 3Change any password they show you (and everywhere you reused it)
  4. 4Use unique passwords for every site (password manager)
  5. 5Enable two-factor authentication everywhere
  6. 6Cover your webcam when not in use (tape or cover)
  7. 7Check haveibeenpwned.com to see where your data was breached
  8. 8Report and delete the email

🆘 What to Do If You're a Victim

  1. 1Don't respond or pay
  2. 2Change the compromised password everywhere you used it
  3. 3Enable 2FA on important accounts
  4. 4Report to FBI IC3 at ic3.gov
  5. 5Report to FTC at ReportFraud.ftc.gov
  6. 6Mark email as spam and delete
  7. 7If you paid, report to your local police
  8. 8Future emails are likely — continue ignoring them

🔗 Related Scams

📚 Sources & References

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