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Horny New Zealanders taking part in naked video chat sessions only to find their activities have been recorded are being blackmailed, as a new report shows Kiwis lost $4.4m last year due to internet scams.

According to findings from security website Net Safe, online users across the country have fallen victim to internet stings, with technological blackmail taking centre stage.

Last year alone, seven Kiwis reported losses of more than $100,000, with the average cyber incident more than doubling to $7,854.

"Over the last 12 months, almost $1.3m was reported lost to dating and romance fraud – this category of scam has previously shown the largest losses recorded over the last two years," Cocker says.

Reported for first time this year, the new scam places a technological spin on blackmail.