Child abuse material was sent to a NSW man's mobile phone as part of an alleged extortion attempt, police say.
The 21-year-old from West Wyalong, in the state's central west, received and deleted a number of messages containing the graphic material earlier this month.
He then received a series of messages via a social media account threatening to tell police about the child abuse material unless he paid money into a private bank account.
The man contacted detectives on Wednesday and revealed the alleged extortion bid.
They arrested three people on Thursday - a 17-year-old woman and a 24-year-old man in West Wyalong and a 19-year-old man at nearby Ungarie.
The trio were charged with extortion-related offences.
The 19-year-old man was also charged with impersonating a police officer.
The woman was due to appear at Wagga Wagga Children's Court on Friday and the two men were bailed to appear at West Wyalong Local Court on June 27.
The alleged scam comes after police in Victoria revealed two men were threatened with having sexual footage of themselves released unless they paid money into an overseas bank account.
In the separate incidents, the men believed they were communicating with a woman online and engaged in sexual behaviour via Skype.
The unknown woman then told the men they had been recorded and demanded cash be paid into a Moroccan bank account, otherwise the footage would be released publicly.
Detectives have warned social media users to be careful about interacting and sharing information online.