FTC Warns Consumers About New Bitcoin Blackmail Scam

ยท 25 Aug 2018 in Bitcoin
Carlos is an international relations' analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.

FTC Warns Consumers About New Bitcoin Blackmail Scam

The cryptocurrency space has been plagued by virtual currency scams. To heed these in the future, the U.S. Federal Trade Commission (FTC) is issuing a warning. Consumers are experiencing a new type of Bitcoin scam in which they are being blackmailed.

New Cryptocurrency Scam

The scam works in a very easy way. Scammers send letters threatening to expose some secrets of the victims. For this not to happen, the victims pay a fee in Bitcoin (BTC). The information has been released by Cristina Miranda, part of the FTC’s Division of Consumer and Business Education.

One of the letters sent said:

“I know about the secret you are keeping from your wife and everyone else. You can ignore this letter, or pay me $a 8,600 confidentiality fee in Bitcoin.”

The letters have an explanation about how to make the payment.

Andrew Ames, FBI Washington Field Office spokesman, said that the scams are targeting high-income neighborhoods. In this way, scammers have more chances to receive the fee requested.

Jeff Strohl, another victim, said that he received a letter requesting a confidentiality fee of $15,750. Of course, he was shocked when he received it. But after it, he decided to warn other individuals about it.

The FTC explained that most of these cases have been targeting men. However, the warning also states women could be affected. A user known as Hana said that he has also received a similar threat.

Hana explained about the situation she lived:

“The email had somehow confiscated one of my passwords and threatened to use pictures, etc. to make pornographic videos and posters using my face. They also demanded that I pay thousands of dollars in bitcoin.”

Scams are expanding all over the world.

In the past, several cryptocurrency-related hacks and attacks affected the entire community. Companies like Coincheck and BitGrail have lost millions of dollars in virtual currencies after being attacked by hackers.

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