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FTC Issues Warning on Bitcoin Blackmail Scams

The U.S. Federal Line of work Commission (FTC) is warning consumers about a new type of bitcoin scam that try ons to blackmail men.

Scammers are sending letters threatening to expose an alleged covert to men, and asking for a “confidentiality fee” paid through bitcoin, wrote Cristina Miranda, a fellow of the FTC’s Division of Consumer and Business Education on Tuesday.

An example letter circumstanced:

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

The letters reportedly also prepare for instructions on how victims can make these payments.

The education division, whose object is to protect consumers from deceptive and unfair business practices, also contributed guidance on how men can avoid losing funds to bitcoin-related blackmail scams.

The energy recommended that potential victims report letters “immediately” to both municipal police and the FBI.

While the FTC specifically said the scam is targeting men, comments mentioned that it may also be targeting women. One comment, by username Hana, reported “I am a female and have also received a similar threat.”

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

This is not the first time that the FTC has discussed cryptocurrency-related scams. As CoinDesk narrated previously, the agency also hosted workshops on cryptocurrency scams and trick back in June.

Federal Trade Commission image via Mark Van Scyoc / Shutterstock

The commander in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic rules and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Congregation, which invests in cryptocurrencies and blockchain startups.

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