Iphone camera recording and phishing email

Hi, so I was recently clearing out my junk mail and I saw an email that looked to be from a real person and not junk so I opened it. It was a phishing email, usually I just delete them but they knew one of the passwords I often use for websites that aren't important. They were claiming to have a recording of me, is this possible at all? My phone is almost always up to date, I mostly use private browsing, I was already in self isolation (COVID-19) when the email was sent and therefore wasn't on public wifi, my phone isn't jailbroken. I'm mostly just worried because they knew my password and are claiming that they will send a video of me doing whatever it is I was doing to random people in my contacts list and I need to know if I should be getting the police involved because they may have a recording of me or if this person is just trying to find a way to get money from teenagers.

Thanks in advance!