The Badger Game

For reasons that I will not divulge, I was doing some research into scams. By happy accident, I came across this Wikipedia entry on a con called "the badger game":

There are several variations of the con; in the most typical form an attractive woman approaches a man, preferably a lonely, married man of some financial means from out of town, and entices him to a private place with the intent of maneuvering him into a compromising position, usually involving some sort of sexual act. Afterward an accomplice presents the victim with photographs, video, or similar evidence, and threatens to expose him unless blackmail money is paid. 

The woman may also claim that the sexual encounter was non-consensual and threaten the victim with a rape charge. It can also involve such things as the threat of a sexual harassment charge which may endanger the victim's career. 

In the days before photography or video, the accomplice would usually burst into the room during the act, claiming to be the woman's husband, father, older brother, etc., and demand justice. The con was particularly effective in the 19th and earlier 20th century when the social repercussions of adultery were much greater. A famous person known to have been victimized by the scheme was Alexander Hamilton, whose adulterous affair with Maria Reynolds was used by her husband to extort money and information from him. 

Variants of the con involve luring the mark with homosexual acts, underage girls, child pornography, bizarre sexual fetishes, or other activities deemed to have a particular social stigma.

In case you were wondering, the con may take its name from the Badger State:

There are two competing explanations for the origin of the term badger game. One explanation is that the term originated in the practice of badger baiting. Another says that it derives its name from the state of Wisconsin (the Badger State), where the con allegedly either originated or was popularized. 

There is no citation for the speculation that the con was "popularized" in Wisconsin. But Wisconsinites are an enterprising people, so you never know.