Both blackmail and extortion involve getting money from persons using threats.
we talk about extortion if a person obtains money or other valuable from another person through coercion. It often, but not necessarily, includes the threat of violence.
Extortion very often involves the abuse of power or authority by someone in a governmental or business position for the purpose of getting money from such persons in exchange for a favour or the avoidance of an action. The person engaged in extortion will only do something is he/she received a certain sum of money.
Blackmail is a direct threat to commmit a crime if the other person does not act in a certain way or does not pay a sum of money to the other. In practice, blackmail often involves a threat to reveal potentially embarrassing, socially damaging, or incriminating information about the other person or his/her family members, unless such persons pays a certain amount of money.
In most jurisdictions, both blackmail and extortion are offenses prosecuted by the state. In most cases it constitutes a felony, which is the highest degree of criminal conduct, and usually sanctioned by a term of incarceration.
Extortion and blackmail are similar in concept, and both are serious crimes, but there are differences between the two.
The term extortion refers to the unlawful taking by a government official of money or property – either by threats, or simply in return for performing some official act (for example for taking money in return for approving licenses).
Blackmail, in contrast to extortion, is when the offender threatens to reveal information about a victim or his family members that is potentially embarrassing, socially damaging, or incriminating unless a demand for money, property, or services is met. Even if the information is true or actually incriminating, one can still be charged with blackmail.