Davey describes something that I’ve seen myself, and know others have seen as well.
“The perpetrator will suggest that they are a successful hacker who has not only gained access to your computer but installed malware to record your activity, including taking control of your webcam. What’s more, to validate their hacking credentials, they will present you with a username and password that you will likely recognize as being one that you use. This is the point at which the recipient panics and sends me an email asking what they can do. I’ll share the answer here, so if you experience this, you can skip sending me an email.”
In my case, the password shared with me was one from years, and years ago that I know had been part of at least one data breach. It was one I used for a few accounts where I wasn;t storing anything useful, and didn’t care if it got taken. (Various forums sites, for example, or sites that make you register to leave a comment, etc.)
Plus the behavior they claim to have recorded, I knew I hadn’t done, so I knew it was just a scam and ignored it.
Not everyone would, I realize. So go read up and learn some things, and don’t panic.