Surge in Bitcoin Blackmail Scams: Stay Vigilant
Wealthy individuals in the U.S. face increasing blackmail attempts demanding bitcoin payments over alleged infidelity claims.
One of Bitcoin's biggest advantages is its ability to facilitate fast and anonymous transactions. However, this very anonymity has also become a vulnerability exploited by malicious actors. While cryptocurrency users enjoy enhanced privacy compared to traditional banking, some scammers are leveraging this to conduct illicit schemes. (See also: Beware of These Five Common Bitcoin Scams.)
Recently, a troubling new scam has emerged targeting affluent American men. Scammers send blackmail letters accusing recipients of past infidelity and demand bitcoin payments to keep these allegations private.
Bitcoin Ransom Demands
A report by Coindoo highlights the case of Dave Eargle, an assistant professor at the University of Colorado’s Leeds School of Business. He received a threatening letter claiming he had been unfaithful and demanding $2,000 in bitcoin to "destroy the evidence and leave [him] alone forever."
Though the accusations were baseless, the letter caused significant distress. Eargle’s prominence and status may have made him a target for this scam.
After reporting the incident to the police and sharing his story online, Eargle discovered many others had received similar blackmail letters. These notes often include detailed instructions on purchasing and transferring bitcoin to the scammers.
Nationwide Blackmail Letters
Responses to Eargle’s blog revealed that these blackmail letters originate from various locations across the U.S., yet all share the same threatening tone and content. Some recent versions have escalated demands up to $8,000 in bitcoin.
Patrick Wyman, an FBI supervisory special agent in the money laundering unit, explained that the ransom amounts are designed to be tempting enough for victims who might have actual indiscretions to pay up. The FBI is actively investigating these scams.
Wyman advises recipients to avoid paying and instead report such incidents to law enforcement. He also recommends being cautious about sharing personal or family information online to reduce vulnerability to these scams.
Note: Investing in cryptocurrencies and Initial Coin Offerings (ICOs) carries significant risks and is speculative. This article does not constitute investment advice. Always consult a qualified professional before making financial decisions. The author holds cryptocurrencies as of this writing.
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