Blackmailers are using pictures of pupils' faces on school websites to create sex abuse images, experts have warned.
The UK's National Crime Agency (NCA) and child safety experts have warned that criminals are using AI to manipulate photos of children before demanding huge sums to not publish them.
They are urging educational institutions to remove identifiable images of children on their websites and social media accounts.
The Internet Watch Foundation (IWF) said a UK secondary school has been subjected to a blackmail attempt after criminals turned pictures of students into child sexual abuse images.
The blackmailers sent the manipulated pictures to the school and threatened to publish them if they weren't sent money.
The IWF said 150 images used in the blackmail attempt could be classified as Child Sexual Abuse Material (CSAM) under UK law.
The incident, which happened last year, is not the only blackmail attempt involving distorting school website or social media account photos in the UK, the watchdog said.
It is not naming the school involved or the police force that was contacted to help block the distribution of the images.
Jess Phillips, the minister for safeguarding and violence against women and girls, said the situation was a 'deeply worrying emerging threat'.
'We will not hesitate to go further if necessary and make sure our laws stay up to date with the latest threats,' she told The Guardian.
A UK advisory body on tackling online harms, the Early Warning Working Group (EWWG), has issued guidance to schools on protecting pupils from blackmailers.
It has recommended that schools remove images that show a student face-on and warned against publishing names or faces of students.
The EWWG created a checklist of actions that schools should take.
This included regularly seeking re-signing of image consent agreements and regular audits of children's images on websites, social media accounts and promotional material.
If the incident occurs, the group - which includes the NSPCC charity, the IWF, the Welsh government, Education Scotland, the Safeguarding Board for Northern Ireland and the NCA - said schools should immediately contact the police, remove the original images and retain any criminal images.
Leora Cruddas, chief executive of the Confederation of School Trusts said: 'As educators we instinctively want to celebrate children's achievements and that includes sharing photos and videos of all the good things that go on in our schools - it is deeply depressing that in doing so we potentially have to contend with threats from abusers and scammers.'
This form of blackmailing is known as sextortion - a crime that has become more common with the increased use of AI tools.
Sextortion involves manipulating a child or adult into sending intimate images of themselves and then threatening to send it to people they love or release them online if the victim doesn't send them money.
Some schools have already taken action against the increasing threat of AI.
Last year, the Loughborough Schools Foundation removed recognisable images of pupils from the websites of the three private schools they represent.