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Users who fall in love with phishing e-mail are invited to enter their user name, password, e-mail address and Instagram birth date, which allows hackers to take control of their accounts.
Trend Micro said it has seen hackers threaten to delete an account unless the user pays a ransom or sends nude photos or videos.
The company said it had to look for emails containing "questionable font styles," incorrect grammar, and punctuation.
Although no one knows who is behind the hacking, the company said they appeared to be Turkish speakers.
Trend Micro said it had unveiled its findings to Instagram and its parent company Facebook, but had not heard them yet.
In a statement sent to CNN Business, Instagram warned users to be wary of any communication purporting to come from the company.
"We will never send you a proactive email on verification, and we will never try to sell you this verification." Beyond the ads, Instagram does not sell any product or service and will not make any offers by email. ", the statement said.
The company said it was advising its users to implement two-factor authentication to make the accounts even more secure.
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