The number of bitcoin email scams has been growing significantly in 2020, and authorities in several countries have warned of new blackmail tactics used in threatening email scams demanding bitcoin. As the world grapples with the coronavirus pandemic and economic crisis, scammers are capitalizing on people’s fear to extort cryptocurrency payments.
FBI Warns of COVID-19 Themed Scams
The U.S. Federal Bureau of Investigation (FBI) recently alerted the public that fraudsters are leveraging increased fear and uncertainty during the COVID-19 pandemic to steal money and launder it through the complex cryptocurrency ecosystem. The FBI has observed a rising number of email scams demanding bitcoin payments, with a new twist: the correspondence claims that the writer will both release your information and infect you and/or your family with coronavirus unless payment is sent to a bitcoin wallet.
Beyond health threats, another common tactic is the “dirty secrets” blackmail. The U.S. Federal Trade Commission (FTC) described this scam as someone claiming to know about an alleged affair or something embarrassing, demanding payment in bitcoin or another cryptocurrency in exchange for keeping quiet. The FBI noted that threatening emails claiming to have access to personal information or knowledge of dirty secrets have circulated for years, but the pandemic has given them a new urgency.
Sextortion Email Scams Proliferating
Sextortion emails asking for bitcoin have also been on the rise in 2020. Scammers threaten to release steamy videos of the victim online, often claiming they placed malware on a porn website visited by the victim, allowing them to record the target’s screen with a webcam. The blackmail email then demands bitcoin or the videos will be posted on social media.
In Canada, the Halton regional police recently warned of fraudulent emails attempting to extort bitcoin from residents in Southern Ontario. Investigators said they received more than 30 complaints about the same email, which reveals recipients’ current or previous passwords and demands bitcoin. The email threatens to post an explicit video of the recipient online if payment is not made. The Canadian Anti-Fraud Center explained that a common sextortion email requests a bitcoin payment within 24–48 hours or the content will be shared with the victim’s contact list.
Other Tactics and Protective Measures
Additional threatening tactics include ransomware emails (though their prevalence has declined), and scams demanding a victim’s bitcoin password or private keys. Scammers often use high-pressure intimidation to force immediate payment. The FTC emphasizes that these actions are not only scams but also criminal extortion attempts. The agency urges anyone who encounters such a scheme to report it to local police, the FBI, the FTC, or their counterparts in other countries.
To protect yourself, never click on suspicious links, do not reply to threatening emails, and avoid sending bitcoin to unknown addresses. Keep your passwords updated and use two-factor authentication. If you receive a blackmail email, preserve evidence (including headers and wallet addresses) and report it to the authorities immediately. Do not negotiate with scammers, as payment rarely stops further threats.
In summary, 2020 has seen a sharp increase in bitcoin email scams, with scammers exploiting the COVID-19 crisis through health threats, sextortion, and personal blackmail. Public awareness and prompt reporting are the best defenses against these evolving cybercrimes.