Can my pixel 2 camera be hacked?

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Android Central Question

I recently received an email saying that they know a password i have been using and they presented a correct passwrod that i actually have been using, then they said to transfer money to an acct and that the sender had access to my camera and will send a video to all my contacta if i didnt transfer.

Of course im not transfering but was questioning the security of my device and if it is actually possible for someine to hack the camera and gain information, also how he was able to find one of the passwords i used?
 
Immediately - using a different device, a PC or a laptop - change ALL your passwords, on ALL your accounts, websites, etc! Then change the password you use to unlock the phone. (In that order.)

If you use the same password all over, or there are too many to remember, install something like KeePassDroid on your phone and Keepass on a PC (and keep the data file on Google Drive, so all your devices can use the same file). Use at least a 20 character upper and lower case, digits and special character password for each one. That way, if someone does hack into a website and gets your password, that's the password to only that site. But guessing a 20 random character password, or trying different "dictionary" attacks, wouldn't pay. (Unless you're wealthy enough to hire a full-time IT security expert, in which case you wouldn't be asking here.)