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They work to a prepared text to coax victims.'We tease them to get them comfortable and we work to a prepared text.' The 'chatter' then captures the victim performing a sex act on camera and uploads the video to an unlisted You Tube page.

The impact of this scam can range from mild embarrassment and a sense of humiliation to extreme emotional harm with some victims around the world taking their own lives.In many cases, an individual is lured into taking part in an online video chat session after making a new friend on a social media website or after receiving a message via a dating app or Skype chat.The internet has opened up new ways to communicate with friends and family overseas and many New Zealanders rely on webcams to stay in touch, using Vo IP video calling services such as Skype, Google Hangouts and other services on various devices including mobiles, computers and internet capable TVs.Webcam blackmail has evolved as a new way to trick unwitting victims into parting with money after chat sessions are recorded and threats made to publish recordings online.In some cases, the victim has allowed the blackmailer into their social network and threats are made to publish the video to Facebook or another site where friends, family and work colleagues could see the video.

The old Facebook blackmail SCAM is back but with some twist this time.

Victims of Caparas's gang in North Hills Village – a poverty-racked village with a population of 1,500 – are believed to include a millionaire Asian pop star and a tycoon's son who paid £150,000 in repeated blackmail demands before going to police.

Former slum dweller Caparas, who was arrested for a second time in September, denies being the gang's ringleader, insisting that she was just a 'chatter' and not the syndicate boss.'Chatters': Maria Caparas, pictured centre in red t-shirt, admitted that she worked as a 'chatter' herself, adding '[they]are mostly young girls and transgender men'.

“It was the first time we heard of parents using their children,” said the middle-aged woman.

Authorities considered that operation in 2011 to be a one-off case.

At the other end of the room stood the mother of two of the children – the third was her niece – and her eldest daughter, aged 13, who was typing on a keyboard.