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In recent years, the rise of international cybercrime led by organised crime groups has raised increasing concern for international governments across the globe. One form of cybercrime, known as “financial sextortion,” has resulted in individuals being blackmailed into transferring money, often cryptocurrency, to prevent the release of sexually explicit material, both artificially created or actual imagery, of the victims.
Sextortion is a form of online blackmail in which criminals threaten to share sexual images, videos, or information to coerce victims into making payments. This practice, referred to as “financial sextortion,” is often carried out by organised crime groups based in West Africa and South East Asia. These criminals may claim to possess sexually explicit material, sometimes fabricated using artificial intelligence (known as “deepfakes”) or may obtain such content by deceiving victims into sharing such images. Typically, perpetrators pose as friends or romantic interests and initiate contact through social media platforms, dating websites and apps, or email, using fake identities to build trust.
Joanna Bailey who heads the Financial Services and Crypto Litigation Department, commented, "the perpetrators of these scams depend on their victims being embarrassed to come forward and make a complaint. This, in turn, allows the scammers to be able to target others."
Taylor Talley, a researcher of online child exploitation patterns and their effects in the United States commented, “sextortion is a fairly new crime with lifelong implications on its victims, not only due to financial harm, but the irreversible sharing of the victims’ images online.” Taylor further commented, “victims often feel helpless as law enforcement have struggled to prevent and punish these perpetrators, who avoid the legal consequences.”
Anyone can become a victim of sextortion; however, young children between ages 14 to 17 and adults under the age 30 are the most vulnerable. ‘Sextortion Guides’ are being sold on social media, offering step-by-step instructions on how to impersonate young men or women online and manipulate victims into sending explicit content. These guides promote tactics including the using anonymous payment methods, such as cryptocurrency or prepaid gift cards, creating fake accounts and using untraceable phone numbers
Reported behaviours commonly experienced by victims of sextortion include:
To reduce the risk of falling victim to sextortion, individuals are encouraged:
For victims, including parents of teenage victims, who believe they may have been affected by sextortion, the following actions are encouraged:
Report the activity to the authorities: It is important to report the incident to your local police force. If there is an immediate risk of harm to you or to your child, call the emergency number. If there is no immediate risk, you can report the crime in person at the police station, or online.
Legal Action: In specific cases, it may be possible to pursue legal proceedings against the perpetrator that defrauded and blackmailed a victim, providing sufficient evidence of their actions is retained. The National Crime Agency in the United Kingdom has warned cybercriminals operating abroad that it could seek to extradite those targeting young people in the United Kingdom and attempting sextortion.
Giambrone and Partners' fraud litigation lawyers are highly experienced in assisting victims of fraud and scams and can play a vital role in offering legal advice, protecting their rights. Our lawyers can guide victims through the process of reporting the crime to the appropriate authorities. In some cases Giambrone and Partners assist with injunctions or restraining orders to prevent further contact or harassment. Our lawyers also have extensive expertise in pursuing civil remedies to seek compensation for emotional distress or reputational damage.
Joanna Bailey heads our banking and financial fraud litigation department.
Joanna frequently leads the litigation against financial institutions involved in cryptocurrency trading disputes, as well as Forex
investment issues and regulatory investigations and has some considerable success in retrieving our clients' funds lost in fraud.
She has developed a range of strategies both to find the assets of the individuals perpetrating the fraudulent schemes and restore the funds to our clients. As well as recognising culpability in the organisations facilitating (but not associated with the fraud), by failing to undertake adequate due diligence.
Joanna led the first case in Europe where proceedings were served on Persons Unknown connected with two digital wallets over the blockchain by non-fungible token or ‘NFT’ in a cryptocurrency fraud. Following this ground-breaking case Joanna was named as Lawyer of the Week in the Financial Times.
Joanna is highly experienced in high-value out-of-court settlement negotiations and has in-depth knowledge of the Civil Procedure Rules as well as English common law..
If you have been a victim of sextortion and would like to know more about how to report the scam and seek compensation please please click here.