A new kind of 'sextortion' scam is on the rise

A highly effective new email scam now circling the web uses a clever ploy to trick victims into paying up.

The email uses an old password dump to convince the victims that the hacker was able to break into their webcam and record them as they watched online pornography. In order to keep this video from being released to the public web, the criminal demands a payment.

One of the extortion letters reads: “$1,400 is a fair price for our little secret.”

The scam is part of a new wave of financially-motivated sextortion campaigns targeting web users. And it could soon plague businesses as well.

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Online sextortion has been around for many years, but previously it was primarily limited to predators who tried to extort victims into sending them nude photos and videos. The new wave of sextortion scams is entirely different — its motivation is money, not sex, and it’s being run by cybercriminals and hackers, some of whom may have connections to organized crime.

So, why are hackers shifting to sextortion? It’s part of an overall trend in the cybercrime community toward extortion and blackmail in general, as this tactic is proving to be more profitable than many other types of scams.

‘13,000 complaints in July alone’

With the ubiquity of online pornography, and the fact that people are now more exposed online than ever before (from social media to cloud-based storage), sextortion is a scam that also makes a lot of sense for criminals. After all, what could be more humiliating for the average person than to have their nude photos or pornography habits exposed to family, friends, and business associates online?

This August, the FBI reported that online sextortion attempts of this type are on the rise. Over 13,000 complaints were filed in July alone.

As of now, most of these sextortion attempts seem to be part of generic spam campaigns, which are blasted out to internet users across the country. However, a growing concern for businesses, banks, and the U.S. government is that hackers could soon use sextortion as a means for getting a backdoor inside a company.

For example, if someone can blackmail a vulnerable employee with the exposure of embarrassing videos and photos, the victim may be willing to share a password or provide some other way into a corporate or government network for a hacker. The U.S. military has become so concerned with the threat of sextortion as a means of breaching a sensitive network that its various branches have launched multiple public awareness campaigns, like this Army CID alert.

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The types of sextortion scams

Sextortion can take many forms, including email-based scams, “watering holes,” and more personalized social engineering.