Paedophiles create fake online personas to pose as children, even geographically researching the areas where they wish to target victims, and persuade them to share sexual images or perform sex acts on camera.
They then threaten to share the pictures or footage with the victim's family or friends, and force them to perform more extreme sex acts on camera, and even harm themselves.
Ceop deputy chief executive Andy Baker said:
Children as young as eight are being targeted, being blackmailed, being extorted, being forced, being coerced, to perform slave-like acts through the internet, on webcam.
It is sexual and degrading, some are being forced to cut themselves and write on their naked bodies.
There has been an increase in children self-harming, seriously self-harming, and seven children in the last couple of years have taken their lives.
Hundreds of British children - some as young as eight - are being blackmailed into performing sex acts online by paedophiles.
Hundreds of British children are being blackmailed into performing sex acts online by paedophiles, an investigation has found.