The FTC, or Federal Trade Commission, is constantly monitoring trends in the digital currency exchange industry and has warned people against the possibility of scam Bitcoin blackmail. This scam involves anonymous email messages that threaten victims to reveal sensitive information if they do not pay up immediately. Such emails are often sent by individuals who claim to be computer hackers. Usually, the attackers insist that their target must pay the ransom in Bitcoin in order to prevent the infringement of their privacy.
This scam is carried out via email or other medium. The person behind the emails pretends to be a legitimate entity and a member of the community. They may use the e-mail address of a friend or colleague, install a key logger or use a web cam to record the victim’s online activity. Then, the person promises to suppress bitcoin and make the content widely circulated through social networks and contacts.
Another type of scam uses a computer virus to extort victims. This type of attack sends a threatening e-mail with the subject line, “Payment from your account.” It demands bitcoin payments in return for revealing the victim’s private information. These e-mails can be difficult to distinguish from legitimate e-mails because they can be from an actual company. However, a phishing e-mail is more likely to be a scam.