Extortion scams are becoming more common, and they’re only getting smarter. But don’t worry—we can #BeFraudSmart by learning how these scams work and taking simple steps to protect ourselves. In this guide, we’ll break down what extortion scams are, how they operate, and how we can all stay safe.
What is extortion fraud, exactly?
Extortion scams happen when someone tries to force us to give them money or valuable things by using fear or trying to make us feel embarrassed. They rely on tricks to pressure us into giving in, often by playing with our emotions. Their goal is to make us think we have no choice but to comply. While this can sound intimidating, the more we understand how these scams work, the more confident we can be in protecting ourselves.
How does it work?
Here’s how extortion typically plays out:
- Threats of harm: Scammers may try to pressure us into sending money or giving something of value by claiming they’ll harm us or someone we care about.
- Revealing secrets: They may claim to have private or embarrassing information they’re ready to expose unless we pay them.
- Abuse of power: Some scammers try to use their influence to demand money or resources, putting pressure on us to give in.
Even though these threats can feel frightening, the key is knowing how to spot a scam and avoid falling for it.
While these situations can be intimidating, knowledge is power. Once you know how to spot a scam, you’ll be able to confidently stand your ground and avoid being tricked.
What are the types of extortion fraud?
There are different types of extortion fraud. Let’s take a look at the most common ones:
- Physical extortion: This happens when someone says they’ll harm us or damage our property unless we give them money or valuables.
- Cyber extortion: Hackers may break into our online accounts, steal our information, and demand money to either return it or stop further damage.
- Financial extortion: Scammers focus on our finances, threatening to damage our credit, leak sensitive information, or interfere with business dealings unless we pay up.
No matter the form, the common thread is that someone pressures us to give them something of value by creating fear of harm or loss.
How to protect ourselves from extortion fraud?
Here are some steps we can all take to reduce our risk and protect ourselves from extortion scams:
- Stay alert
When something feels off, trust your instincts. Scammers often try to create urgency or promise something that seems too good (or too bad) to be true. If we take a moment to pause and think things through, we’re more likely to spot the scam before it causes harm. - Keep personal and financial information secure
Here’s how we can stay ahead of cybercriminals:- Use strong, unique passwords for all accounts, and turn on two-factor authentication (2FA) for extra protection.
- Regularly check our bank and credit card statements. Set up alerts so we’re notified of any unusual activity.
- Be mindful of what we share online. Avoid posting sensitive details like financial information or home addresses on social media or unsecured websites.
- Report suspicious activity
If you’re ever threatened or suspect extortion, it’s important to act quickly. Contact local authorities or your country’s cybercrime division—they have the experience to guide us through the situation. If the extortion involves our work, let our employer know so they can help protect both us and the company.
The faster we report suspicious activity, the stronger we make our defense. By taking action, we not only protect ourselves, but we also help prevent others from being impacted. If you’d like to learn more about how to protect yourself from fraud, go to Western Union Fraud Resource Center.
Extortion scams can be intimidating, but with the right knowledge and precautions, we can protect ourselves. Let’s stay alert, trust our instincts, and take action when something doesn’t feel right. Together, we can all stay safe and #BeFraudSmart!
