Daniel Perry, from Dunfermline, Fife, is thought to have fallen victim to a scam where internet users are lured into online chats and then blackmailed.

It is being reported that the 17-year-old is said to have believed he was talking to a girl of around the same age in the US state of Illinois for several months.

Daniel is thought to have taken his life on July 15 when he was told the conversations would be shared with friends and family unless he paid up.

It is understood he was sent a message which warned that his life would not be worth living unless he deposited money into a named account.

According to reports, his mother Nicola described her son as a "happy" boy who was not depressed. "Knowing him as I do, he has felt embarrassed, horrified and thought he's let everyone down," she was quoted in the Daily Telegraph as saying. "But he wasn't doing anything wrong, just what anyone his age might do."

Police confirmed the case was being investigated and urged anyone who feared they were being targeted to contact them.

The case follows that of Hannah Smith, 14, who was found hanged in her bedroom at the family home in Leicestershire after she was allegedly bullied online.

It happened on the website Ask.fm, which has been increasingly criticised for not doing enough to prevent abuse.

Ask.fm released a statement on Thursday night, saying it was delaying an announcement on changes it planned to implement out of respect for Hannah.

Hannah's funeral has been taking place in Leicestershire this morning. Over four hundred mourners have arrived at St Mary's Church in the town dressed in bright clothing and onesies - at the family's request.