Nebraska AG issues warning on crypto extortion scam

LINCOLN, Neb. — The Nebraska Attorney General’s Office has issued a Consumer Alert regarding a recent rise in email extortion scams targeting Nebraskans. The scam involves sending highly personalized emails to potential victims, threatening to expose allegedly embarrassing content unless they send large sums of money to a Bitcoin address. What makes this particular scam especially alarming is the scammer's use of the victim's personal information, such as home addresses, and even images of their residence sourced from internet mapping services.

The scammer claims that the embarrassing material will be released shortly after the email is read, alleging that a “special pixel” was embedded to track the victim. This tactic is designed to create a false sense of urgency, pressuring victims to respond quickly. Similar to other scams, the scammers may threaten to harm the victim or their loved ones if the demands are not met.

While such scams can result in significant financial losses, the emotional toll on victims is equally concerning. The Nebraska Attorney General’s Consumer Affairs Response Team encourages Nebraskans to report any suspicious emails they receive. They can assist in identifying scams and offer guidance on how to report them. If you suspect you have been targeted by this scam, you can reach the team at 402-471-2682.

In this scam, the extortionist specifically demanded payment in Bitcoin. Although not all cryptocurrency transactions are scams, consumers are urged to be cautious with payments in digital currencies like Bitcoin, as they are difficult to trace and reverse. Scammers often prefer these methods, as well as gift cards, wire transfers, and digital payment apps.

To protect yourself from scams, the Nebraska Attorney General’s Office suggests the following:

• Report scam emails to your email provider.

• Report suspicious crypto wallets and addresses to online crypto scam databases, such as Chainabuse and Bitcoin Who's Who.

• Be alert for common red flags, such as unfamiliar charges, poorly formatted emails with grammatical errors, and investment opportunities that seem too good to be true.

By staying vigilant and reporting scams, Nebraskans can help protect their communities from falling victim to such fraudulent schemes.

For more information, visit the Nebraska Attorney General’s Office website.