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"The victim is contacted shortly after by the perpetrator who claims they have videoed the event and demands money.
The victim is told that the video will be posted to their friends and family via social media if they do not pay the money." Men are approached on various sites but "predominantly" through friend requests on Facebook.
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His first alleged target ended up naked and carrying out a sex act, a detective told Limavady Magistrates Court.
At least one other woman engaged in a similar action.
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Victims are told to pay hundreds of pounds or footage of them will be posted to their family and friends, detectives said.
Hertfordshire Police, which raised the alarm after receiving 20 reports so far this year, said it believes the con is being carried out around Britain.
In some cases money has been transferred, including sums in the region of £500, police said.
Detective Inspector John Hazeldine said: "This is a scam which we believe is taking place across the country, and not confined to Hertfordshire.