How did an email porn spammer get my password?

So you got one of those spam emails that said "we took control of your webcam while you were watching porn and if you don't pay up we'll release the video ... to prove we know it was you, here's your password ..."

How do they know your password?

Well, when you register for a site (or an app) they have a database containing all the usernames, email address…

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