It's not even always a case of being evil. Large institutions/companies are full of polices and processes designed to protect the system at all costs and some nice people will turn their brain off and strictly follow those policies either because they feel they have to, because it's the easiest thing to do, or because they know that as long as they stick to the policies (or what they think the policies are) they'll be safe.
Your bank's website might have shit accessibility and usability, but it's not because the developers suck, it's because they aren't paid to do more than the minimum that they're paid for, and it's stupid for them to incur that cost or scope risk just because they're altruistic. If they spent 5 hours on a Wednesday optimizing a thing for screen readers, but there's literally no measurable reason to do so, that's a mark against them if there's anything else to do that does.
The same pattern is true across other jobs. It's not the admin's job to have empathy or to decide whether a policy should exist, it's there job to enforce arbitrary policies. It's also not the job of a University to educate people, that's now a University typically makes money, it's only even tenuously their job to get people between having no measure of knowledge, and having a measure of knowledge, but not necessarily to have any specific impact on that.
This. Always protect yourself, even when operating in good faith. You may only interact with someone professionally, but you never know what kind of person you are really working with. Sometimes people may seem nice, but are pure evil.
In this particular case, it is likely the people in charge are completely unaware of the people doing the blackmailing. This may even be criminal, so it might be worth just talking to the police.