FTC Warns About New Type of Bitcoin Scam

US Federal Trade Commission warns consumers about new type of Bitcoin scam, specifically, the blackmailing scam that has been targeting mainly men in the US.

23 August, AtoZ Markets The US Federal Trade Commission (FTC) has warned consumers about a new type of Bitcoin scam that is aiming to blackmail men.

FTC Warns About New Type of Bitcoin Scam

Reportedly, the scammers are sending out letters that are threatening to expose an alleged secret to men. The criminals are asking for “confidentiality fee” paid through Bitcoin, according to the member of the FTC’s Division of Consumer and Business Education Cristina Miranda. 

The FTC has presented an example letter to the consumers:

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

These letters are also supposedly providing instructions regarding how the victims can make these payments. The education division of the authoritative body has a goal to protect consumers from such deceptive and unfair practices. The division has provided guidance on how men can avoid losing their money to Bitcoin-related blackmail scams.

FTC Crypto Oversight

The agency has advised that potential victims report the instances of receiving such letters immediately to local police and to the FBI.

The FTC has earlier stated that the scam is targeting men. However, the comments have also suggested that it can also be aimed at women. One of such comments stated:

“I am a female and have also received a similar threat. The email had somehow confiscated one of my passwords and threated to use pictures, etc. to make pornographic videos and posters using my face. They also demanded that I pay thousands of dollars in bitcoin.”

In fact, this is not the first time the FTC has paid attention to scams related to the cryptocurrency. Earlier this summer, the agency has been hosting workshops on cryptocurrency scams and fraud. 

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