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US Federal Trade Commission Issues Warning on Bitcoin Blackmail Scam ‘Targeting Men’

The U.S. Federal Trade Commission warns consumers about blackmailing scams involving Bitcoin.

The Division of Consumer and Business Education of the U.S. Federal Trade Commission (FTC) published an article August 21 titled “How to avoid a Bitcoin blackmail scam.”

The FTC’s letter focuses on consumer protection, in what it calls a “new scam targeting men,” warning about blackmailing scams demanding payments in Bitcoin (BTC). The brief letter states:

“Here’s how it works. Scammers have been sending letters to men, demanding payments using [B]itcoin in exchange for keeping quiet about alleged affairs. The letter also explains how to use [B]itcoin to make the payment.”

Among the “classic signs” of blackmailing, the FTC lists “threats, intimidation and high-pressure tactics” and advises consumers to “report it immediately to your local police, and the FBI.”

Cybersecurity firm Kaspersky Labs recently published a report according to which cybercriminals stole over $2.3 million via crypto scams during the second quarter of 2018.

Earlier this month the UK police published a report stating that crypto-related scams have led to $2.55 million in investor losses this summer alone

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