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Thank you for your question. I appreciate that this can be very distressing.
This type of 'scam' is very common. The victim normally receives an email stating that hackers have obtained access to their computer, found something on there, and threaten to circulate this to friends and family. The details of what they have found are normally vague because it is normally just a ruse to try and extract money from the victim. Please reassure your relative that this is highly likely to be a scam and NOT to agree to send any money or even to respond to the email received, as this will then alert them to the fact they might have a willing victim. Often these emails are sent to large mailing lists in the hope they reach someone vulnerable who believes them and they can then manipulate them into sending money.
My advice would be to ignore all requests and ensure any email passwords are updated. Chances are his email has been obtained from a mailing list somewhere and they are trying their luck.
Very frustrating and upsetting for the recipient but sadly very common.
I hope this helps to reassure you and your relative.