FTC Alleges Sextortion Help Firm Swindled Victims Out of $60 Million

The Federal Trade Commission filed a complaint on Tuesday accusing Digital Forensics Corporation, its owner Dmitry Belkin, and affiliated entities of defrauding sextortion victims. The agency alleges the Ohio-based company exploited panicked individuals by charging them for assistance it never provided, accumulating at least $60 million in revenue. According to The Record, the scheme operated from February 2023 through July 2026.

A federal judge has issued a temporary order halting the defendants’ business activities while the litigation continues. The FTC claims the company misled victims into paying between $1,499 and $20,000 for a “Phase 1” service package. This package promised to track criminals, produce investigative reports, and notify law enforcement, but the agency says the firm performed none of these tasks.

Deceptive Practices and Fabricated Evidence

Instead of conducting genuine investigations, Digital Forensics allegedly changed victims’ account settings to block the blackmailer, effectively ending the threat themselves. The company then fabricated chat transcripts and presented pre-saved coordinates, often in Nigeria or the Philippines, as proof of locating the perpetrator. According to the FTC, these actions were designed to create the illusion of progress and justify the high fees charged to desperate customers.

Sales staff reportedly used scripted calls to manipulate victims, tailoring their language to exploit specific fears. For instance, military personnel were warned of dishonorable discharge, while married victims were told their spouses could be targeted. The firm allegedly discouraged victims from simply blocking their attackers, contradicting standard advice from law enforcement and cybersecurity experts.

Who Is Affected and How They Were Targeted

The company targeted individuals searching for help with sextortion through advertisements on Google, YouTube, X, and other platforms. Victims facing threats to share intimate images were particularly vulnerable, as they sought ways to stop the harassment. The FTC notes that while many sextortion emails are mass-bluffs, some involve real threats, leaving victims feeling trapped and willing to pay for any perceived solution.

The allegations have not yet been decided by the court. The Record reports that the FTC’s complaint details how the firm falsely portrayed itself as a digital forensics expert capable of coordinating with law enforcement. In reality, the company allegedly told victims that law enforcement would not assist them, isolating them further.

What should you do?

If you are currently facing sextortion threats, preserve all evidence, including messages and usernames, before blocking the offender. Do not pay the blackmailer or provide access to your devices. Report the crime to local police and, in the US, to the FBI or the National Center for Missing and Exploited Children if a minor is involved. If you paid a fraudulent service, keep all receipts and report the experience to the FTC via ReportFraud.ftc.gov.

Background: Digital forensics

Digital forensics provides concrete evidence of compromise scope and attacker tactics. It cannot reconstruct deleted data or guarantee identification of the threat actor. Its value depends on whether you need legal proof or operational containment.

Read the full guide: Digital Forensics: Real Benefits and Hard Limitations

What to do and how to stay safe: Digital Forensics Corporation

• Preserve all threatening messages and account details by taking screenshots or saving copies before blocking the offender.
• Stop all communication with the blackmailer and do not pay any demands or grant access to your devices.
• Report the incident to local law enforcement and relevant federal agencies such as the FBI or NCMEC CyberTipline.
• If you paid a third-party service, retain all contracts and receipts and file a complaint with the FTC.

Step-by-step guide: Social Engineering Warning Signs and How to Respond

General security guidance from the Threat Times newsroom. It is not confirmed advice from the organisations named in this story.

Frequently asked questions

Did Digital Forensics Corporation actually track down the sextortionists?

No, the FTC alleges the company fabricated chat transcripts and used pre-saved coordinates to deceive victims.

How much money did the FTC say the company collected?

The FTC alleges the company and its affiliates collected at least $60 million from victims.

Is the company still operating?

A federal court has temporarily halted the defendants’ activities while the legal case proceeds.