Gambling firm blackmailed

"Internet extortionists yesterday threatened one of the leading UK online betting companies with a child pornography smear campaign unless it paid out several thousand euros," reports the Financial Times.

"The threat to Blue Square takes attacks by cyber criminals on internet companies to a new level."

"Blue Square's website was inaccessible for five hours on Monday morning as hackers began bombarding the site. The company was then sent an email demanding that 7,000 euros (£4,860) be paid to an online website... on Tuesday morning the blackmailers followed up with a phone call, threatening to send child pornographer emails in the company's name unless the money was paid within two days."