MEDIUM RISK
Password Extortion Scam
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.
Losses: Part of $178 million in extortion losses (FBI 2024)
Targets: Anyone with email, especially people who reuse passwords
Updated: 2026-01-07
Also known as: Sextortion Email • Webcam Blackmail Scam • Bitcoin Extortion • Password Blackmail
1How It 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.
How Scammers Make Contact
Email
2Warning Signs & Red Flags
- 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
3Real-World Example
"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
4How to Protect Yourself
- Don't panic — these are almost always bluffs
- Never pay the ransom — it won't stop future emails
- Change any password they show you (and everywhere you reused it)
- Use unique passwords for every site (password manager)
- Enable two-factor authentication everywhere
- Cover your webcam when not in use (tape or cover)
- Check haveibeenpwned.com to see where your data was breached
- Report and delete the email
5What To Do If You're a Victim
- 1Don't respond or pay
- 2Change the compromised password everywhere you used it
- 3Enable 2FA on important accounts
- 4Report to FBI IC3 at ic3.gov
- 5Report to FTC at ReportFraud.ftc.gov
- 6Mark email as spam and delete
- 7If you paid, report to your local police
- 8Future emails are likely — continue ignoring them
Report This Scam
?Frequently Asked Questions
What is Password Extortion Scam?
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. 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
- Th...
How common is this type of scam?
Password Extortion Scam is classified as a medium risk threat. Reported losses: Part of $178 million in extortion losses (FBI 2024). This primarily targets Anyone with email, especially people who reuse passwords.
Can I get my money back?
Recovery depends on how you paid. Credit card payments may be reversed through chargebacks. Wire transfers and cryptocurrency are rarely recoverable. Report immediately to your bank and file complaints with the FTC at reportfraud.ftc.gov and FBI IC3 at ic3.gov.
How do I report this?
Report to the FTC at reportfraud.ftc.gov. For internet crimes, file with FBI IC3 at ic3.gov. For identity theft, visit identitytheft.gov. Also contact your local police and your bank.
Sources & References
Related Scams
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