e-mail and iphone camera hacked?

I was looking through my spam and saw that I had received an email saying that they had hacked my e-mail and installed a software onto my device so to record me using my camera and tired to use blackmail to extort money from me. They had written the wrong password so I ignored it.

I then received a very similar email from what appears to be my own email address with much the same information. Only, unlike the first email, they didn't write what my password was. They wrote a specific software that they used to make it seem credible. I permanently deleted their emails and I immediately changed my password for that email on a separate device.

My question: Is this possible? Have I been hacked? Also if they can mirror my device to see what I am looking at, why didn't they just send themselves the money they requested from my bank account themselves?