Sextortion victims allegedly scammed out of $60 million by company promising to catch blackmailers

US regulators have sued a cybersecurity company accused of exploiting sextortion victims by charging thousands of dollars for investigative services it allegedly never delivered, sometimes using fabricated evidence and fake customer reviews.

People desperate to prevent intimate images from being leaked online may have fallen victim to a second scheme while seeking help. The Federal Trade Commission (FTC) says a company promising to identify online blackmailers and stop sextortion attacks instead collected at least $60 million from victims, often without delivering the services they paid for.

Key takeaways

• The FTC has sued Digital Forensics Corporation and its owner, Dmitry Belkin, over an alleged $60 million sextortion assistance scheme
• Victims reportedly paid between $1,499 and $20,000 for services that were often never delivered
• The company allegedly fabricated investigative findings, suppressed negative reviews and generated thousands of fake positive reviews
• A federal court has temporarily halted the company's activities
• Authorities urge sextortion victims to stop communicating with blackmailers, avoid paying and report threats to law enforcement

A company promising to fight sextortion allegedly exploited its victims

According to the FTC's Oct. 13 announcement, Digital Forensics Corporation LLC, owner Dmitry Belkin, and several affiliated companies targeted people already experiencing sextortion.

Sextortion is a form of online blackmail in which criminals threaten to distribute intimate images or videos unless the victim pays money or meets other demands. Some attackers possess genuine compromising material, while others simply bluff.

Digital Forensics advertised itself as a solution to this problem, claiming it could track down perpetrators, prevent intimate material from being published and provide evidence to law enforcement.

The company allegedly used advertising on Google, YouTube and X to reach people searching for urgent assistance.

Once victims made contact, they were offered a so-called Phase 1 package, priced between $1,499 and $20,000.

For that price, the company said it would identify the blackmailer's location, communicate with the perpetrator, prepare an investigative report and notify law enforcement.

However, the FTC alleges that the company frequently failed to perform these services. In some cases, it simply blocked the blackmailer on the victim's social media accounts, fabricated chat transcripts or supplied made-up investigative information.

Customers were subsequently pressured into purchasing additional Phase 2 services, supposedly involving ongoing monitoring and reporting to authorities. Those promises also allegedly went unfulfilled.

Fear tactics, fake investigations and thousands of bogus reviews

The FTC complaint describes a business model that allegedly relied on amplifying victims' fears to persuade them to pay.

Telemarketers reportedly tailored their sales pitches to each victim's personal circumstances.

Military personnel, for example, were allegedly warned that sextortion could lead to a dishonorable discharge. Married victims were told their spouses and relatives might be targeted.

These claims were designed to make customers believe that immediate intervention was necessary, according to regulators.

The FTC also accuses the company of manipulating its online reputation to appear more trustworthy.

Employees in India allegedly wrote fake positive reviews, while Uber drivers who had never used the company's services were reportedly paid to post favorable testimonials.

Some customers were allegedly pressured into leaving positive reviews before receiving any assistance. Negative feedback was suppressed.

When dissatisfied customers requested refunds, the company allegedly failed to honor its own refund policy.

The FTC says the defendants violated several federal laws, including the FTC Act, the Telemarketing Sales Rule, the Reviews and Testimonials Rule, and the Gramm-Leach-Bliley Act.

A federal court in Ohio has temporarily halted the company's activities while the case proceeds. The allegations have not yet been adjudicated.

When seeking help becomes another opportunity for exploitation

Sextortion relies heavily on fear, embarrassment and a sense of urgency. Criminals know that victims may be willing to pay significant amounts to prevent compromising material from reaching friends, relatives or employers.

Those same emotions can leave victims susceptible to questionable recovery services promising immediate results.

A company claiming to possess sophisticated tracking technology or the ability to guarantee that intimate images will never be shared should be treated with caution.

Even legitimate cybersecurity professionals can’t guarantee that material in a criminal's possession will never be distributed.

What to do if someone threatens to leak intimate images

The FTC has published additional guidance for sextortion victims, emphasizing that people facing these threats should not feel compelled to pay either the blackmailer or a company promising a quick fix.

Here are some practical steps to protect yourself:

1.     Don't pay the blackmailer. Paying doesn't guarantee the material will be deleted. Criminals may simply demand more money.

2.     Stop communicating and block the perpetrator. Preserve relevant evidence, including usernames, messages and payment demands, before blocking and reporting the account.

3.     Report the incident. In the US, contact local police or the FBI through IC3.gov. If a minor is involved, report the incident to the National Center for Missing & Exploited Children's CyberTipline.

4.     Use free image-protection resources. Adults can use StopNCII.org to help prevent participating platforms from distributing intimate images without consent. For images taken when someone was under 18, Take It Down offers a similar service.

5.     Be skeptical of paid recovery services. Research the company independently, look for complaints and avoid anyone promising guaranteed results or demanding immediate payment.

6.     Secure your accounts. Change compromised passwords, enable multi-factor authentication and review social media privacy settings, especially if the blackmailer has gained access to an account.

The best defense is usually a healthy dose of skepticism: whenever someone demands money, personal information, or urgent action, verify first.

It also helps to use a security tool.

When in doubt about an unsolicited phone call, text or social media interaction, consider using a scam detector like Scamio or Scam Radar, two scam-fighting solutions integrated across our consumer security suite.

It's also important to tell someone you trust. Sextortion thrives on isolation. Involving a friend or family member can help victims make informed decisions rather than acting out of panic.

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