Mysterious Letter Demanding Bitcoin Is Scam: DA's Office

SANTA CLARA COUNTY, CA — A mysterious letter claiming the recipient is hiding an illicit activity is reportedly being mailed to some Santa Clara County residents, authorities advised Tuesday. One version of the letter starts with the statement, "I’m going to cut to the chase. I know about the secret you are keeping from your wife and everyone else," according to the Consumer Mediation Services division of the Santa Clara County District Attorney's Office.

The letter has no return address and is intentionally vague to cover all kinds of behavior, officials with the DA's office said in a statement. To avoid having the alleged secret revealed, the letter demands a large payment.

"This recent crop of letters brings a digital currency twist to a very old scam," authorities said. "The new angle is to demand payment with Bitcoin, a type of cryptocurrency that is difficult to trace."

Because Bitcoin is not tied to a bank or national government and can be redeemed all over the globe, the scammer and the victim’s money are often outside the reach of U.S. law enforcement.

"The scammers most likely know nothing about the intended victims," authorities said. "They hope that by casting a wide net, they will either reach someone with a guilty conscience or an innocent person who does not want to deal with a false, but embarrassing allegation. Once a victim falls for the scam and makes a payment, the blackmail seldom stops. The first payment will likely be followed by more – and increasing – demands."

The DA's Office said residents who receive such letters should disregard them.

Anyone who has fallen victim to such a scam should contact the U.S. Postal Inspector’s Service at 877-876-2455 or their local police department.

The DA's Consumer Mediation Services can be reached at 408-792-2880 with any further questions or concerns about scams such as the letter.

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