“Password Was Compromised Through A Legitimate Website” Scam Explained

Have you received an email claiming your password was obtained through a legitimate website, leading to your device being infected with malware? This type of email is a scam designed to extort money from victims through threats and deception.

Overview of the Scam

The “Password Was Compromised Through A Legitimate Website” email scam is a form of sextortion scam that has recently emerged. It starts with an email containing fake claims that the recipient’s password was acquired through a legitimate website. Supposedly, this allowed the sender to infect the victim’s device with malware and spyware to access their microphone, camera, and personal data.

The email states that compromising the password led to a successful malware attack on the recipient’s system. It installed a backdoor virus granting access to all the device’s contents and control over the microphone and camera.

While not directly stated, the email implies that explicit videos and photos of the victim were recorded and compiled into an “archive.” It threatens to leak the indecent content unless the demanded ransom is paid.

This gives the false impression that the recipient’s intimate activities were observed and documented. The extortion fee is usually requested in Bitcoin, a cryptocurrency offering increased anonymity.

Breakdown of the Scam Email Components

Here are the key components contained in a typical “Password Was Compromised” sextortion scam email:

• Subject Line – Usually urgent titles like “Warning” or “Important” to entice opening.
• Backstory – Claims the recipient’s password was obtained through a legitimate site.
• Malware Attack Story – States this password access enabled a malware attack on the victim’s device.
• Webcam/Microphone Access – Says malware provided access to microphone, camera, and personal data.
• Implicit Blackmail – Suggests inappropriate videos/images were recorded and archived.
• Ransom Demand – Demands payment, usually $500-$1000 in Bitcoin, to avoid data leaks.
• Threats – Threatens to release intimate content if payment isn’t received in 1-2 days.
• Fake Technical Jargon – Uses made-up hacker terms like “backdoor virus” to seem credible.
• Sense of Urgency – Short deadline given to pay the ransom and avoid assumed leaks.

Goals of the Scammers

The primary objectives behind this scam include:

• Extorting Money – Defraud victims out of ransom payments by exploiting fear/embarrassment.
• Installing Malware – Trick users into downloading malware by posing as legitimate notifications.
• Harvesting Personal Data – Attempt to collect personal information like passwords through phishing techniques.
• Damaging Reputations – Threaten to harm victims’ reputations by releasing fabricated explicit content.

This scam combines social engineering manipulation with technological deception for maximum psychological impact. The extortion targets basic human emotions like fear and shame.

Here is how the “Password Was Compromised Through A Legitimate Website” email scam looks:

Subject: Careful, it’s important

Hi.
I have very bad news for you. Unfortunately, your private data was compromised.

Your password was compromised through a legitimate website, and that led to events that I will explain to you now.
Using your password, our team gained access to your email. We analyzed all data and after going through found a vector for an attack.
That attack was a success. The result was that your machine was infected with a virus/backdoor. Our team uses individual approach to every victim, our success rate is very high.

We have gained access to the data, but the most interesting part that we are able to control your webcam and microphone.

And you are correct. We have a nice archive with exploding video content.
It’s all good, but we are here to make money. So if you don’t want those videos to be leaked, please follow the instructions.

You pay $750 USD, and there will be nothing to worry about. No chats, no photos, nothing. Every single file will be deleted and virus removed from your machine

Use Bitcoin to make the transfer. Wallet address is 1J7RYCYp8D7zYoAAR4HQDXujaRU6D9tDbf , it’s unique and we will know that you made the payment immediately.
You have 2 days to make the transfer, that’s reasonable.
Take care.

How the Scam Works

The “Password Was Compromised” sextortion scam operates through a sequence of deceptive techniques to defraud and extort money from victims. Here is a step-by-step breakdown of how this scam works:

1. Obtaining Email Addresses

The first step for scammers is compiling a list of target email addresses. These are gathered through illegal data dumps, malware infections, phishing and more. The broader the recipient pool, the higher chance of snaring victims.

2. Crafting Deceptive Emails

Scammers put significant effort into making the email content seem convincing. The backstory about a compromised password aims to seem plausible, as do the technical explanations of malware infections.

Including the victim’s password in the email often lends credibility since it implies their account was hacked. But in reality, these are typically passwords leaked online previously.

3. Executing Mass Spamming

The crafted scam emails are then distributed en masse to the compiled list of recipients. Mass spamming enables scammers to reach thousands of potential victims rapidly.

Email distribution methods like botnets and spoofed addresses help evade anti-spam filters. This facilitates delivery to inboxes rather than spam folders.

4. Sit Back and Wait

After blasting out the emails, scammers simply monitor the provided Bitcoin wallet addresses for any ransom payments. The broader the recipient pool, the more likely some will become convinced and pay up.

5. Follow-up Extortion

If the initial email doesn’t prompt a payment, scammers might send follow-up threatening messages. These emphasize the impending consequences if the ransom isn’t paid immediately.

6. Transfer and Withdrawal

Once ransom money lands in the provided Bitcoin wallet, the scammers swiftly transfer it elsewhere and eventually withdraw it into normal cash. This rapid laundering makes reversing transactions nearly impossible.

7. Damage Control

For recipients submitting payments, scammers generally cease all contact after withdrawing the funds. Those who don’t pay may have their email addresses sold to other scammers to endure recurring sextortion attacks.

This sequence demonstrates how the “Password Was Compromised” scam strategically exploits human psychology and technological tools to defraud at scale. Awareness of the techniques is key to recognizing and avoiding it.

What to Do If You Are Targeted

If you receive the “Password Was Compromised Through A Legitimate Website” sextortion email or any similar scam message, stay calm and take the following actions:

Do Not Panic

The email is meant to instill fear and urgency to pay without thinking. But rest assured, the claims of malware infections, extortion archives and imminent data leaks are completely fabricated. There is no reason to panic or act hastily.

Do Not Reply

Replying will simply confirm your email address is active. Instead, ignore and delete the message then block the sender. Do not try reasoning with scammers or asking questions, as this achieves nothing constructive.

Do Not Pay the Ransom

No matter how convincing or threatening the email seems, never pay the ransom demand. Doing so will likely spur repeat extortion attempts while funding criminal enterprises.

Run a Malware Scan

Run a scan with updated antivirus software as a precaution, even though infections claims are fake. This can identify any actual malware picked up from other sources.

Change Online Passwords

Consider changing passwords for online accounts, particularly any reused on multiple sites. Use unique, complex passwords for each account and enable two-factor authentication where possible.

Contact the Website

If the email references a legitimate website from which your password was allegedly obtained, contact the site to make them aware of potential vulnerabilities being exploited.

Report the Email

Forward the scam email to the Anti-Phishing Working Group at phish@apwg.org and to the Federal Trade Commission at spam@uce.gov. Report it as phishing to your email provider.

Monitor Accounts

Keep closer watch on online accounts named in the scam message for any suspicious activity. Review credit card and bank statements for unknown charges.

Warn Contacts

Let colleagues, friends and family know about this scam if you think they could also be targeted. Share awareness to prevent them from being deceived.

Remaining calm and avoiding reactionary decisions denies scammers the satisfaction of profiting off the scam. Take smart steps to actively protect yourself instead.

Is Your Device Infected? Check for Malware

If your device is running slowly or acting suspicious, it may be infected with malware. Malwarebytes Anti-Malware Free is a great option for scanning your device and detecting potential malware or viruses. The free version can efficiently check for and remove many common infections.  

Malwarebytes can run on Windows, Mac, and Android devices. Depending on which operating system is installed on the device you’re trying to run a Malwarebytes scan, please click on the tab below and follow the displayed steps.

Frequently Asked Questions

What is the “Password Was Compromised” email scam?

This is a type of sextortion scam where recipients are sent an email claiming their password was obtained from a website, leading to malware infections and recordings of explicit videos through their webcam. The email threatens to leak the supposed videos unless a ransom is paid.

Is my device really infected with malware?

No, the claims of malware infections enabling access to your microphone and camera are completely fabricated in this scam. It is just a tactic to scare recipients.

Were inappropriate videos actually recorded of me?

No, the scammers do not really have any intimate videos or recordings of you. This is just implied as leverage for extortion.

Should I pay the ransom?

No, you should never pay the demanded ransom. It will likely lead to more extortion attempts, and there is no actual evidence to eliminate by paying.

How did the scammers get my password?

They most likely did not. Scammers use passwords leaked in previous breaches to give the illusion of having “hacked” your account, when the passwords are actually publicly available.

Can this email really infect my device?

Simply opening or reading the email will not infect your device with malware. Scammers may include malware download links, so don’t click anything within the email.

How can I protect myself from this scam?

Use unique passwords on all accounts, enable two-factor authentication, run antivirus software, and be cautious of any unsolicited emails demanding money. Never pay ransoms to scammers.

What should I do if I receive this email?

Do not reply to the email, pay the ransom or click any links. Report the scam to anti-phishing groups, forward it to your email provider, and delete it. You can also warn your contacts about the scam tactic.

Conclusion

The “Password Was Compromised Through A Legitimate Website” email scam displays the deceptive creativity of cybercriminals. It combines technical jargon, personal information and implicit threats to trick victims into paying ransoms out of fear and uncertainty.

Recognizing the underlying template and psychology illuminates that the claims are completely fabricated. There is no malware infection, no inappropriate videos being recorded and no reason to pay. Simply deleting the message thwarts the scam entirely.

This scam reminds us that human emotions like fear and embarrassment can easily overpower rational thinking. That is why we must remain vigilant for online extortion attempts aimed at exploiting those feelings. Developing awareness of common scam tactics allows identifying and responding appropriately to fraudulent messages.

With scam methods constantly evolving, continued education is essential. Pay attention to cybercrime alerts, implement robust security protections and think twice before trusting any unsolicited messages. Staying informed and proactive are the keys to protecting oneself and halting extortion scams in their tracks.