Daniel Perry, 17, was pulled from the Firth of Forth a day after police said blackmailers threatened to disclose the chats unless he paid money into a bank account, The Guardian reported Friday.
Despite efforts to resuscitate him, Perry died shortly afterward.
An apprentice mechanic from Dunfermline in Fife County, Perry is believed to have been lured into the web cam chats with someone he believed was an American girl.
His mother said she believes Perry killed himself because he "thought he's let everybody down."
"However, he wasn't doing anything wrong, just what anyone his age might do, but this scam is all about exploiting young people," she added.
A police spokesman said the teen's death would be thoroughly investigated.
"Police Scotland treats any instances of cyber bullying, online threats or blackmail very seriously," he said.
Investigators found Perry had received anonymous messages on the website ask.fm telling him to "kill yourself mate" and "you need to let a blade meet your throat."
LGBT community has 'bullied the American people': Bachmann
McPhee, Cokas 'working on their marriage' after affair