diff --git a/test/api/v3/integration/chat/POST-chat.flag.test.js b/test/api/v3/integration/chat/POST-chat.flag.test.js
index d2e01398b5..f7e13dcfbe 100644
--- a/test/api/v3/integration/chat/POST-chat.flag.test.js
+++ b/test/api/v3/integration/chat/POST-chat.flag.test.js
@@ -5,144 +5,181 @@ import {
 import { find } from 'lodash';
 
 describe('POST /chat/:chatId/flag', () => {
-  let user, admin, anotherUser, group;
-  const TEST_MESSAGE = 'Test Message';
+  context('Flags a Group Chat', () => {
+    let user, admin, anotherUser, group;
+    const TEST_MESSAGE = 'Test Message';
 
-  beforeEach(async () => {
-    user = await generateUser({balance: 1});
-    admin = await generateUser({balance: 1, 'contributor.admin': true});
-    anotherUser = await generateUser();
+    beforeEach(async () => {
+      user = await generateUser({balance: 1});
+      admin = await generateUser({balance: 1, 'contributor.admin': true});
+      anotherUser = await generateUser();
 
-    group = await user.post('/groups', {
-      name: 'Test Guild',
-      type: 'guild',
-      privacy: 'public',
-    });
-  });
-
-  it('Returns an error when chat message is not found', async () => {
-    await expect(user.post(`/groups/${group._id}/chat/incorrectMessage/flag`))
-      .to.eventually.be.rejected.and.eql({
-        code: 404,
-        error: 'NotFound',
-        message: t('messageGroupChatNotFound'),
+      group = await user.post('/groups', {
+        name: 'Test Guild',
+        type: 'guild',
+        privacy: 'public',
       });
-  });
-
-  it('Allows players to flag their own message', async () => {
-    let message = await user.post(`/groups/${group._id}/chat`, {message: TEST_MESSAGE});
-    await expect(user.post(`/groups/${group._id}/chat/${message.message.id}/flag`)).to.eventually.be.ok;
-  });
-
-  it('Flags a chat', async () => {
-    let { message } = await anotherUser.post(`/groups/${group._id}/chat`, {message: TEST_MESSAGE});
-
-    let flagResult = await user.post(`/groups/${group._id}/chat/${message.id}/flag`);
-    expect(flagResult.flags[user._id]).to.equal(true);
-    expect(flagResult.flagCount).to.equal(1);
-
-    let groupWithFlags = await admin.get(`/groups/${group._id}`);
-
-    let messageToCheck = find(groupWithFlags.chat, {id: message.id});
-    expect(messageToCheck.flags[user._id]).to.equal(true);
-  });
-
-  it('Flags a chat when the author\'s account was deleted', async () => {
-    let deletedUser = await generateUser();
-    let { message } = await deletedUser.post(`/groups/${group._id}/chat`, {message: TEST_MESSAGE});
-    await deletedUser.del('/user', {
-      password: 'password',
     });
 
-    let flagResult = await user.post(`/groups/${group._id}/chat/${message.id}/flag`);
-    expect(flagResult.flags[user._id]).to.equal(true);
-    expect(flagResult.flagCount).to.equal(1);
-
-    let groupWithFlags = await admin.get(`/groups/${group._id}`);
-
-    let messageToCheck = find(groupWithFlags.chat, {id: message.id});
-    expect(messageToCheck.flags[user._id]).to.equal(true);
-  });
-
-  it('Flags a chat with a higher flag acount when an admin flags the message', async () => {
-    let { message } = await user.post(`/groups/${group._id}/chat`, {message: TEST_MESSAGE});
-
-    let flagResult = await admin.post(`/groups/${group._id}/chat/${message.id}/flag`);
-    expect(flagResult.flags[admin._id]).to.equal(true);
-    expect(flagResult.flagCount).to.equal(5);
-
-    let groupWithFlags = await admin.get(`/groups/${group._id}`);
-
-    let messageToCheck = find(groupWithFlags.chat, {id: message.id});
-    expect(messageToCheck.flags[admin._id]).to.equal(true);
-    expect(messageToCheck.flagCount).to.equal(5);
-  });
-
-  it('allows admin to flag a message in a private group', async () => {
-    let privateGroup = await user.post('/groups', {
-      name: 'Test party',
-      type: 'party',
-      privacy: 'private',
+    it('Returns an error when chat message is not found', async () => {
+      await expect(user.post(`/groups/${group._id}/chat/incorrectMessage/flag`))
+        .to.eventually.be.rejected.and.eql({
+          code: 404,
+          error: 'NotFound',
+          message: t('messageGroupChatNotFound'),
+        });
     });
-    await user.post(`/groups/${privateGroup._id}/invite`, {
-      uuids: [anotherUser._id],
+
+    it('Allows players to flag their own message', async () => {
+      let message = await user.post(`/groups/${group._id}/chat`, {message: TEST_MESSAGE});
+      await expect(user.post(`/groups/${group._id}/chat/${message.message.id}/flag`)).to.eventually.be.ok;
     });
-    await anotherUser.post(`/groups/${privateGroup._id}/join`);
-    let { message } = await user.post(`/groups/${privateGroup._id}/chat`, {message: TEST_MESSAGE});
 
-    let flagResult = await admin.post(`/groups/${privateGroup._id}/chat/${message.id}/flag`);
+    it('Flags a chat', async () => {
+      let { message } = await anotherUser.post(`/groups/${group._id}/chat`, {message: TEST_MESSAGE});
 
-    expect(flagResult.flags[admin._id]).to.equal(true);
-    expect(flagResult.flagCount).to.equal(5);
+      let flagResult = await user.post(`/groups/${group._id}/chat/${message.id}/flag`);
+      expect(flagResult.flags[user._id]).to.equal(true);
+      expect(flagResult.flagCount).to.equal(1);
 
-    let groupWithFlags = await anotherUser.get(`/groups/${privateGroup._id}`);
-    let messageToCheck = find(groupWithFlags.chat, {id: message.id});
+      let groupWithFlags = await admin.get(`/groups/${group._id}`);
 
-    expect(messageToCheck).to.not.exist;
-  });
-
-  it('does not allow non member to flag message in private group', async () => {
-    let privateGroup = await user.post('/groups', {
-      name: 'Test party',
-      type: 'party',
-      privacy: 'private',
+      let messageToCheck = find(groupWithFlags.chat, {id: message.id});
+      expect(messageToCheck.flags[user._id]).to.equal(true);
     });
-    let { message } = await user.post(`/groups/${privateGroup._id}/chat`, {message: TEST_MESSAGE});
 
-    await expect(anotherUser.post(`/groups/${privateGroup._id}/chat/${message.id}/flag`))
-      .to.eventually.be.rejected.and.eql({
-        code: 404,
-        error: 'NotFound',
-        message: t('groupNotFound'),
+    it('Flags a chat when the author\'s account was deleted', async () => {
+      let deletedUser = await generateUser();
+      let { message } = await deletedUser.post(`/groups/${group._id}/chat`, {message: TEST_MESSAGE});
+      await deletedUser.del('/user', {
+        password: 'password',
       });
-  });
 
-  it('Returns an error when user tries to flag a message that is already flagged', async () => {
-    let { message } = await anotherUser.post(`/groups/${group._id}/chat`, {message: TEST_MESSAGE});
+      let flagResult = await user.post(`/groups/${group._id}/chat/${message.id}/flag`);
+      expect(flagResult.flags[user._id]).to.equal(true);
+      expect(flagResult.flagCount).to.equal(1);
 
-    await user.post(`/groups/${group._id}/chat/${message.id}/flag`);
+      let groupWithFlags = await admin.get(`/groups/${group._id}`);
 
-    await expect(user.post(`/groups/${group._id}/chat/${message.id}/flag`))
-      .to.eventually.be.rejected.and.eql({
-        code: 404,
-        error: 'NotFound',
-        message: t('messageGroupChatFlagAlreadyReported'),
+      let messageToCheck = find(groupWithFlags.chat, {id: message.id});
+      expect(messageToCheck.flags[user._id]).to.equal(true);
+    });
+
+    it('Flags a chat with a higher flag acount when an admin flags the message', async () => {
+      let { message } = await user.post(`/groups/${group._id}/chat`, {message: TEST_MESSAGE});
+
+      let flagResult = await admin.post(`/groups/${group._id}/chat/${message.id}/flag`);
+      expect(flagResult.flags[admin._id]).to.equal(true);
+      expect(flagResult.flagCount).to.equal(5);
+
+      let groupWithFlags = await admin.get(`/groups/${group._id}`);
+
+      let messageToCheck = find(groupWithFlags.chat, {id: message.id});
+      expect(messageToCheck.flags[admin._id]).to.equal(true);
+      expect(messageToCheck.flagCount).to.equal(5);
+    });
+
+    it('allows admin to flag a message in a private group', async () => {
+      let privateGroup = await user.post('/groups', {
+        name: 'Test party',
+        type: 'party',
+        privacy: 'private',
       });
+      await user.post(`/groups/${privateGroup._id}/invite`, {
+        uuids: [anotherUser._id],
+      });
+      await anotherUser.post(`/groups/${privateGroup._id}/join`);
+      let { message } = await user.post(`/groups/${privateGroup._id}/chat`, {message: TEST_MESSAGE});
+
+      let flagResult = await admin.post(`/groups/${privateGroup._id}/chat/${message.id}/flag`);
+
+      expect(flagResult.flags[admin._id]).to.equal(true);
+      expect(flagResult.flagCount).to.equal(5);
+
+      let groupWithFlags = await anotherUser.get(`/groups/${privateGroup._id}`);
+      let messageToCheck = find(groupWithFlags.chat, {id: message.id});
+
+      expect(messageToCheck).to.not.exist;
+    });
+
+    it('does not allow non member to flag message in private group', async () => {
+      let privateGroup = await user.post('/groups', {
+        name: 'Test party',
+        type: 'party',
+        privacy: 'private',
+      });
+      let { message } = await user.post(`/groups/${privateGroup._id}/chat`, {message: TEST_MESSAGE});
+
+      await expect(anotherUser.post(`/groups/${privateGroup._id}/chat/${message.id}/flag`))
+        .to.eventually.be.rejected.and.eql({
+          code: 404,
+          error: 'NotFound',
+          message: t('groupNotFound'),
+        });
+    });
+
+    it('Returns an error when user tries to flag a message that is already flagged', async () => {
+      let { message } = await anotherUser.post(`/groups/${group._id}/chat`, {message: TEST_MESSAGE});
+
+      await user.post(`/groups/${group._id}/chat/${message.id}/flag`);
+
+      await expect(user.post(`/groups/${group._id}/chat/${message.id}/flag`))
+        .to.eventually.be.rejected.and.eql({
+          code: 404,
+          error: 'NotFound',
+          message: t('messageGroupChatFlagAlreadyReported'),
+        });
+    });
+
+    it('shows a hidden message to the original poster', async () => {
+      let { message } = await user.post(`/groups/${group._id}/chat`, {message: TEST_MESSAGE});
+
+      await admin.post(`/groups/${group._id}/chat/${message.id}/flag`);
+
+      let groupWithFlags = await user.get(`/groups/${group._id}`);
+      let messageToCheck = find(groupWithFlags.chat, {id: message.id});
+
+      expect(messageToCheck).to.exist;
+
+      let auGroupWithFlags = await anotherUser.get(`/groups/${group._id}`);
+      let auMessageToCheck = find(auGroupWithFlags.chat, {id: message.id});
+
+      expect(auMessageToCheck).to.not.exist;
+    });
   });
 
-  it('shows a hidden message to the original poster', async () => {
-    let { message } = await user.post(`/groups/${group._id}/chat`, {message: TEST_MESSAGE});
+  context('Flags an inbox chat', () => {
+    let user;
 
-    await admin.post(`/groups/${group._id}/chat/${message.id}/flag`);
+    beforeEach(async () => {
+      user = await generateUser();
+    });
 
-    let groupWithFlags = await user.get(`/groups/${group._id}`);
-    let messageToCheck = find(groupWithFlags.chat, {id: message.id});
+    it('Flags a chat', async () => {
+      const messageToSend = 'messageToSend';
+      const receiver = await generateUser();
 
-    expect(messageToCheck).to.exist;
+      await user.post('/members/send-private-message', {
+        message: messageToSend,
+        toUserId: receiver._id,
+      });
 
-    let auGroupWithFlags = await anotherUser.get(`/groups/${group._id}`);
-    let auMessageToCheck = find(auGroupWithFlags.chat, {id: message.id});
+      const updatedReceiver = await receiver.get('/user');
+      const sendersMessageInReceiversInbox = find(updatedReceiver.inbox.messages, (message) => {
+        return message.uuid === user._id && message.text === messageToSend;
+      });
 
-    expect(auMessageToCheck).to.not.exist;
+      const flagResult = await receiver.post(`/chat/${sendersMessageInReceiversInbox.id}/flag`);
+      expect(flagResult.flags[receiver._id]).to.equal(true);
+      expect(flagResult.flagCount).to.equal(1);
+
+      const updatedReceiverAfterFlag = await receiver.get('/user');
+      const receiversInboxAfterFlag = _.find(updatedReceiverAfterFlag.inbox.messages, (message) => {
+        return message.uuid === user._id && message.text === messageToSend;
+      });
+
+      expect(receiversInboxAfterFlag.flags[receiver._id]).to.equal(true);
+      expect(receiversInboxAfterFlag.flagCount).to.equal(1);
+    });
   });
 });
diff --git a/website/client/app.vue b/website/client/app.vue
index 28d957bb51..055abf95cc 100644
--- a/website/client/app.vue
+++ b/website/client/app.vue
@@ -9,6 +9,7 @@ div
         h2 {{$t('tipTitle', {tipNumber: currentTipNumber})}}
         p {{currentTip}}
   #app(:class='{"casting-spell": castingSpell}')
+    report-flag-modal
     amazon-payments-modal
     snackbars
     router-view(v-if="!isUserLoggedIn || isStaticPage")
@@ -118,6 +119,7 @@ import SelectMembersModal from 'client/components/selectMembersModal.vue';
 import notifications from 'client/mixins/notifications';
 import { setup as setupPayments } from 'client/libs/payments';
 import amazonPaymentsModal from 'client/components/payments/amazonModal';
+import reportFlagModal from 'client/components/chat/reportFlagModal';
 
 export default {
   mixins: [notifications],
@@ -131,6 +133,7 @@ export default {
     BuyModal,
     SelectMembersModal,
     amazonPaymentsModal,
+    reportFlagModal,
   },
   data () {
     return {
diff --git a/website/client/components/chat/chatCard.vue b/website/client/components/chat/chatCard.vue
index f588ac8a5f..9f29c18e4e 100644
--- a/website/client/components/chat/chatCard.vue
+++ b/website/client/components/chat/chatCard.vue
@@ -3,6 +3,7 @@ div
   .mentioned-icon(v-if='isUserMentioned')
   .message-hidden(v-if='msg.flagCount === 1 && user.contributor.admin') Message flagged once, not hidden
   .message-hidden(v-if='msg.flagCount > 1 && user.contributor.admin') Message hidden
+  .flag-message(v-if='msg.flags && msg.flags[user._id]') {{$t('youFlaggedThisMessage')}}
   .card-body
       h3.leader(
         :class='userLevelStyle(msg)',
@@ -23,7 +24,7 @@ div
           .svg-icon(v-html="icons.copy")
           | {{$t('copyAsTodo')}}
           // @TODO make copyAsTodo work in the inbox
-      span.action(v-if='!inbox && user.flags.communityGuidelinesAccepted && msg.uuid !== "system"', @click='report(msg)')
+      span.action(v-if='user.flags.communityGuidelinesAccepted && msg.uuid !== "system"', @click='report(msg)')
         .svg-icon(v-html="icons.report")
         | {{$t('report')}}
         // @TODO make flagging/reporting work in the inbox. NOTE: it must work even if the communityGuidelines are not accepted and it MUST work for messages that you have SENT as well as received. -- Alys
@@ -49,7 +50,7 @@ div
     top: -.5em;
   }
 
-  .message-hidden {
+  .message-hidden, .flag-message {
     margin-left: 1.5em;
     margin-top: 1em;
     color: red;
diff --git a/website/client/components/chat/chatMessages.vue b/website/client/components/chat/chatMessages.vue
index ddd2480197..065199a0a8 100644
--- a/website/client/components/chat/chatMessages.vue
+++ b/website/client/components/chat/chatMessages.vue
@@ -3,7 +3,6 @@
   .row
     .col-12
       copy-as-todo-modal(:group-name='groupName', :group-id='groupId')
-      report-flag-modal
   div(v-for="(msg, index) in messages", v-if='chat && canViewFlag(msg)')
     // @TODO: is there a different way to do these conditionals? This creates an infinite loop
     //.hr(v-if='displayDivider(msg)')
@@ -83,14 +82,12 @@ import findIndex from 'lodash/findIndex';
 
 import Avatar from '../avatar';
 import copyAsTodoModal from './copyAsTodoModal';
-import reportFlagModal from './reportFlagModal';
 import chatCard from './chatCard';
 
 export default {
   props: ['chat', 'groupId', 'groupName', 'inbox'],
   components: {
     copyAsTodoModal,
-    reportFlagModal,
     chatCard,
     Avatar,
   },
diff --git a/website/client/components/chat/reportFlagModal.vue b/website/client/components/chat/reportFlagModal.vue
index 96f847eeee..4b3fbe6f44 100644
--- a/website/client/components/chat/reportFlagModal.vue
+++ b/website/client/components/chat/reportFlagModal.vue
@@ -1,5 +1,5 @@
 <template lang="pug">
-  b-modal#report-flag(:title='$t("abuseFlagModalHeading")', size='lg', :hide-footer='true')
+  b-modal#report-flag(:title='$t("abuseFlagModalHeading")', size='lg', :hide-footer='true', v-if='user')
     .modal-header
       h4(v-html="$t('abuseFlagModalHeading', reportData)")
     .modal-body
@@ -49,7 +49,7 @@ export default {
   },
   created () {
     this.$root.$on('habitica::report-chat', data => {
-      if (!data.message || !data.groupId) return;
+      if (!data.message) return;
       this.abuseObject = data.message;
       this.groupId = data.groupId;
       this.$root.$emit('bv::show::modal', 'report-flag');
@@ -64,10 +64,18 @@ export default {
     },
     async reportAbuse () {
       this.notify('Thank you for reporting this violation. The moderators have been notified.');
-      await this.$store.dispatch('chat:flag', {
-        groupId: this.groupId,
-        chatId: this.abuseObject.id,
-      });
+
+      if (!this.groupId) {
+        await this.$store.dispatch('chat:flagInbox', {
+          chatId: this.abuseObject.id,
+        });
+      } else {
+        await this.$store.dispatch('chat:flag', {
+          groupId: this.groupId,
+          chatId: this.abuseObject.id,
+        });
+      }
+
       this.close();
     },
     async clearFlagCount () {
diff --git a/website/client/components/userMenu/inbox.vue b/website/client/components/userMenu/inbox.vue
index f32bb05af5..9489f0dbe7 100644
--- a/website/client/components/userMenu/inbox.vue
+++ b/website/client/components/userMenu/inbox.vue
@@ -239,6 +239,7 @@ export default {
           user: message.user,
           uuid: message.uuid,
           id: message.id,
+          flags: message.flags,
         };
 
         if (message.sent) {
diff --git a/website/client/store/actions/chat.js b/website/client/store/actions/chat.js
index e83adafc2a..f07ddf84d7 100644
--- a/website/client/store/actions/chat.js
+++ b/website/client/store/actions/chat.js
@@ -74,6 +74,12 @@ export async function flag (store, payload) {
   return response.data.data;
 }
 
+export async function flagInbox (store, payload) {
+  let url = `/api/v3/chat/${payload.chatId}/flag`;
+  let response = await axios.post(url);
+  return response.data.data;
+}
+
 export async function clearFlagCount (store, payload) {
   let url = `/api/v3/groups/${payload.groupId}/chat/${payload.chatId}/clearflags`;
   let response = await axios.post(url);
diff --git a/website/common/locales/en/messages.json b/website/common/locales/en/messages.json
index 9877ab39f2..2097f966c6 100644
--- a/website/common/locales/en/messages.json
+++ b/website/common/locales/en/messages.json
@@ -66,5 +66,6 @@
   "messageNotificationNotFound": "Notification not found.",
 
   "notificationsRequired": "Notification ids are required.",
-  "beginningOfConversation": "This is the beginning of your conversation with <%= userName %>. Remember to be kind, respectful, and follow the Community Guidelines!"
+  "beginningOfConversation": "This is the beginning of your conversation with <%= userName %>. Remember to be kind, respectful, and follow the Community Guidelines!",
+  "youFlaggedThisMessage": "You have reported this message to moderators. They will contact you about the issue soon."
 }
diff --git a/website/server/controllers/api-v3/chat.js b/website/server/controllers/api-v3/chat.js
index 88687c43c1..4172996ee7 100644
--- a/website/server/controllers/api-v3/chat.js
+++ b/website/server/controllers/api-v3/chat.js
@@ -11,6 +11,8 @@ import { removeFromArray } from '../../libs/collectionManipulators';
 import { getUserInfo, getGroupUrl, sendTxn } from '../../libs/email';
 import slack from '../../libs/slack';
 import pusher from '../../libs/pusher';
+import { getAuthorEmailFromMessage } from '../../libs/chat';
+import { chatReporterFactory } from '../../libs/chatReporting/chatReporterFactory';
 import nconf from 'nconf';
 import Bluebird from 'bluebird';
 import bannedWords from '../../libs/bannedWords';
@@ -22,7 +24,6 @@ const FLAG_REPORT_EMAILS = nconf.get('FLAG_REPORT_EMAIL').split(',').map((email)
   return { email, canSend: true };
 });
 
-const COMMUNITY_MANAGER_EMAIL = nconf.get('EMAILS:COMMUNITY_MANAGER_EMAIL');
 /**
  * @apiDefine MessageNotFound
  * @apiError (404) {NotFound} MessageNotFound The specified message could not be found.
@@ -40,22 +41,6 @@ const COMMUNITY_MANAGER_EMAIL = nconf.get('EMAILS:COMMUNITY_MANAGER_EMAIL');
 
 let api = {};
 
-async function getAuthorEmailFromMessage (message) {
-  let authorId = message.uuid;
-
-  if (authorId === 'system') {
-    return 'system';
-  }
-
-  let author = await User.findOne({_id: authorId}, {auth: 1}).exec();
-
-  if (author) {
-    return getUserInfo(author, ['email']).email;
-  } else {
-    return 'Author Account Deleted';
-  }
-}
-
 function textContainsBannedSlur (message) {
   let bannedSlursMatched = getMatchesByWordArray(message, bannedSlurs);
   return bannedSlursMatched.length > 0;
@@ -298,85 +283,51 @@ api.likeChat = {
  * @apiError (404) {NotFound} AlreadyFlagged Chat messages cannot be flagged more than once by a user
  * @apiError (404) {NotFound} messageGroupChatFlagAlreadyReported The message has already been flagged
  */
-api.flagChat = {
+api.flagGroupChat = {
   method: 'POST',
   url: '/groups/:groupId/chat/:chatId/flag',
   middlewares: [authWithHeaders()],
   async handler (req, res) {
-    let user = res.locals.user;
-    let groupId = req.params.groupId;
-
-    req.checkParams('groupId', res.t('groupIdRequired')).notEmpty();
-    req.checkParams('chatId', res.t('chatIdRequired')).notEmpty();
-
-    let validationErrors = req.validationErrors();
-    if (validationErrors) throw validationErrors;
-
-    let group = await Group.getGroup({
-      user,
-      groupId,
-      optionalMembership: user.contributor.admin,
-    });
-    if (!group) throw new NotFound(res.t('groupNotFound'));
-    let message = _.find(group.chat, {id: req.params.chatId});
-
-    if (!message) throw new NotFound(res.t('messageGroupChatNotFound'));
-    if (message.uuid === 'system') throw new BadRequest(res.t('messageCannotFlagSystemMessages', {communityManagerEmail: COMMUNITY_MANAGER_EMAIL}));
-    let update = {$set: {}};
-
-    // Log user ids that have flagged the message
-    if (!message.flags) message.flags = {};
-    // TODO fix error type
-    if (message.flags[user._id] && !user.contributor.admin) throw new NotFound(res.t('messageGroupChatFlagAlreadyReported'));
-    message.flags[user._id] = true;
-    update.$set[`chat.$.flags.${user._id}`] = true;
-
-    // Log total number of flags (publicly viewable)
-    if (!message.flagCount) message.flagCount = 0;
-    if (user.contributor.admin) {
-      // Arbitrary amount, higher than 2
-      message.flagCount = 5;
-    } else {
-      message.flagCount++;
-    }
-    update.$set['chat.$.flagCount'] = message.flagCount;
-
-    await Group.update(
-      {_id: group._id, 'chat.id': message.id},
-      update
-    ).exec();
-
-    let reporterEmailContent = getUserInfo(user, ['email']).email;
-    let authorEmail = await getAuthorEmailFromMessage(message);
-    let groupUrl = getGroupUrl(group);
-
-    sendTxn(FLAG_REPORT_EMAILS, 'flag-report-to-mods', [
-      {name: 'MESSAGE_TIME', content: (new Date(message.timestamp)).toString()},
-      {name: 'MESSAGE_TEXT', content: message.text},
-
-      {name: 'REPORTER_USERNAME', content: user.profile.name},
-      {name: 'REPORTER_UUID', content: user._id},
-      {name: 'REPORTER_EMAIL', content: reporterEmailContent},
-      {name: 'REPORTER_MODAL_URL', content: `/static/front/#?memberId=${user._id}`},
-
-      {name: 'AUTHOR_USERNAME', content: message.user},
-      {name: 'AUTHOR_UUID', content: message.uuid},
-      {name: 'AUTHOR_EMAIL', content: authorEmail},
-      {name: 'AUTHOR_MODAL_URL', content: `/static/front/#?memberId=${message.uuid}`},
-
-      {name: 'GROUP_NAME', content: group.name},
-      {name: 'GROUP_TYPE', content: group.type},
-      {name: 'GROUP_ID', content: group._id},
-      {name: 'GROUP_URL', content: groupUrl},
-    ]);
-
-    slack.sendFlagNotification({
-      authorEmail,
-      flagger: user,
-      group,
-      message,
-    });
+    const chatReporter = chatReporterFactory('Group', req, res);
+    const message = await chatReporter.flag();
+    res.respond(200, message);
+  },
+};
 
+// @TODO:
+/**
+ * @api {post} /api/v3/groups/:groupId/chat/:chatId/flag Flag a group chat message
+ * @apiDescription A message will be hidden from chat if two or more users flag a message. It will be hidden immediately if a moderator flags the message. An email is sent to the moderators about every flagged message.
+ * @apiName FlagChat
+ * @apiGroup Chat
+ *
+ * @apiParam (Path) {UUID} groupId The group id ('party' for the user party and 'habitrpg' for tavern are accepted)
+ * @apiParam (Path) {UUID} chatId The chat message id
+ *
+ * @apiSuccess {Object} data The flagged chat message
+ * @apiSuccess {UUID} data.id The id of the message
+ * @apiSuccess {String} data.text The text of the message
+ * @apiSuccess {Number} data.timestamp The timestamp of the message in milliseconds
+ * @apiSuccess {Object} data.likes The likes of the message
+ * @apiSuccess {Object} data.flags The flags of the message
+ * @apiSuccess {Number} data.flagCount The number of flags the message has
+ * @apiSuccess {UUID} data.uuid The user id of the author of the message
+ * @apiSuccess {String} data.user The username of the author of the message
+ *
+ * @apiUse GroupNotFound
+ * @apiUse MessageNotFound
+ * @apiUse GroupIdRequired
+ * @apiUse ChatIdRequired
+ * @apiError (404) {NotFound} AlreadyFlagged Chat messages cannot be flagged more than once by a user
+ * @apiError (404) {NotFound} messageGroupChatFlagAlreadyReported The message has already been flagged
+ */
+api.flagChat = {
+  method: 'POST',
+  url: '/chat/:chatId/flag',
+  middlewares: [authWithHeaders()],
+  async handler (req, res) {
+    const chatReporter = chatReporterFactory('Inbox', req, res);
+    const message = await chatReporter.flag();
     res.respond(200, message);
   },
 };
diff --git a/website/server/libs/chat.js b/website/server/libs/chat.js
new file mode 100644
index 0000000000..3554bc90ee
--- /dev/null
+++ b/website/server/libs/chat.js
@@ -0,0 +1,18 @@
+import { model as User } from '../models/user';
+import { getUserInfo } from './email';
+
+export async function getAuthorEmailFromMessage (message) {
+  let authorId = message.uuid;
+
+  if (authorId === 'system') {
+    return 'system';
+  }
+
+  let author = await User.findOne({_id: authorId}, {auth: 1}).exec();
+
+  if (author) {
+    return getUserInfo(author, ['email']).email;
+  } else {
+    return 'Author Account Deleted';
+  }
+}
diff --git a/website/server/libs/chatReporting/chatReporter.js b/website/server/libs/chatReporting/chatReporter.js
new file mode 100644
index 0000000000..148dbd4696
--- /dev/null
+++ b/website/server/libs/chatReporting/chatReporter.js
@@ -0,0 +1,36 @@
+import {
+} from '../errors';
+import { getUserInfo } from '../email';
+import { getAuthorEmailFromMessage } from '../chat';
+
+export default class ChatReporter {
+  constructor (req, res) {
+    this.req = req;
+    this.res = res;
+  }
+
+  async validate () {}
+
+  async notify (group, message) {
+    const reporterEmailContent = getUserInfo(this.user, ['email']).email;
+    this.authorEmail = await getAuthorEmailFromMessage(message);
+    this.emailVariables = [
+      {name: 'MESSAGE_TIME', content: (new Date(message.timestamp)).toString()},
+      {name: 'MESSAGE_TEXT', content: message.text},
+
+      {name: 'REPORTER_USERNAME', content: this.user.profile.name},
+      {name: 'REPORTER_UUID', content: this.user._id},
+      {name: 'REPORTER_EMAIL', content: reporterEmailContent},
+      {name: 'REPORTER_MODAL_URL', content: `/static/front/#?memberId=${this.user._id}`},
+
+      {name: 'AUTHOR_USERNAME', content: message.user},
+      {name: 'AUTHOR_UUID', content: message.uuid},
+      {name: 'AUTHOR_EMAIL', content: this.authorEmail},
+      {name: 'AUTHOR_MODAL_URL', content: `/static/front/#?memberId=${message.uuid}`},
+    ];
+  }
+
+  async flag () {
+    throw new Error('Flag must be implemented');
+  }
+}
diff --git a/website/server/libs/chatReporting/chatReporterFactory.js b/website/server/libs/chatReporting/chatReporterFactory.js
new file mode 100644
index 0000000000..50ac7e9e89
--- /dev/null
+++ b/website/server/libs/chatReporting/chatReporterFactory.js
@@ -0,0 +1,10 @@
+import GroupChatReporter from './groupChatReporter';
+import InboxChatReporter from './inboxChatReporter';
+
+export function chatReporterFactory (type, req, res) {
+  if (type === 'Group') {
+    return new GroupChatReporter(req, res);
+  } else if (type === 'Inbox') {
+    return new InboxChatReporter(req, res);
+  }
+}
diff --git a/website/server/libs/chatReporting/groupChatReporter.js b/website/server/libs/chatReporting/groupChatReporter.js
new file mode 100644
index 0000000000..58dee49e63
--- /dev/null
+++ b/website/server/libs/chatReporting/groupChatReporter.js
@@ -0,0 +1,97 @@
+import find from 'lodash/find';
+import nconf from 'nconf';
+
+import ChatReporter from './chatReporter';
+import {
+  BadRequest,
+  NotFound,
+} from '../errors';
+import { getGroupUrl, sendTxn } from '../email';
+import slack from '../slack';
+import { model as Group } from '../../models/group';
+
+const COMMUNITY_MANAGER_EMAIL = nconf.get('EMAILS:COMMUNITY_MANAGER_EMAIL');
+const FLAG_REPORT_EMAILS = nconf.get('FLAG_REPORT_EMAIL').split(',').map((email) => {
+  return { email, canSend: true };
+});
+
+export default class GroupChatReporter extends ChatReporter {
+  constructor (req, res) {
+    super(req, res);
+
+    this.user = res.locals.user;
+    this.groupId = req.params.groupId;
+  }
+
+  async validate () {
+    this.req.checkParams('groupId', this.res.t('groupIdRequired')).notEmpty();
+    this.req.checkParams('chatId', this.res.t('chatIdRequired')).notEmpty();
+
+    let validationErrors = this.req.validationErrors();
+    if (validationErrors) throw validationErrors;
+
+    let group = await Group.getGroup({
+      user: this.user,
+      groupId: this.groupId,
+      optionalMembership: this.user.contributor.admin,
+    });
+    if (!group) throw new NotFound(this.res.t('groupNotFound'));
+
+    let message = find(group.chat, {id: this.req.params.chatId});
+    if (!message) throw new NotFound(this.res.t('messageGroupChatNotFound'));
+    if (message.uuid === 'system') throw new BadRequest(this.res.t('messageCannotFlagSystemMessages', {communityManagerEmail: COMMUNITY_MANAGER_EMAIL}));
+
+    return {message, group};
+  }
+
+  async notify (group, message) {
+    await super.notify(group, message);
+
+    const groupUrl = getGroupUrl(group);
+    sendTxn(FLAG_REPORT_EMAILS, 'flag-report-to-mods', this.emailVariables.concat([
+      {name: 'GROUP_NAME', content: group.name},
+      {name: 'GROUP_TYPE', content: group.type},
+      {name: 'GROUP_ID', content: group._id},
+      {name: 'GROUP_URL', content: groupUrl},
+    ]));
+
+    slack.sendFlagNotification({
+      authorEmail: this.authorEmail,
+      flagger: this.user,
+      group,
+      message,
+    });
+  }
+
+  async flagGroupMessage (group, message) {
+    let update = {$set: {}};
+    // Log user ids that have flagged the message
+    if (!message.flags) message.flags = {};
+    // TODO fix error type
+    if (message.flags[this.user._id] && !this.user.contributor.admin) throw new NotFound(this.res.t('messageGroupChatFlagAlreadyReported'));
+    message.flags[this.user._id] = true;
+    update.$set[`chat.$.flags.${this.user._id}`] = true;
+
+    // Log total number of flags (publicly viewable)
+    if (!message.flagCount) message.flagCount = 0;
+    if (this.user.contributor.admin) {
+      // Arbitrary amount, higher than 2
+      message.flagCount = 5;
+    } else {
+      message.flagCount++;
+    }
+    update.$set['chat.$.flagCount'] = message.flagCount;
+
+    await Group.update(
+      {_id: group._id, 'chat.id': message.id},
+      update
+    ).exec();
+  }
+
+  async flag () {
+    let {message, group} = await this.validate();
+    await this.flagGroupMessage(group, message);
+    await this.notify(group, message);
+    return message;
+  }
+}
diff --git a/website/server/libs/chatReporting/inboxChatReporter.js b/website/server/libs/chatReporting/inboxChatReporter.js
new file mode 100644
index 0000000000..19966ad9eb
--- /dev/null
+++ b/website/server/libs/chatReporting/inboxChatReporter.js
@@ -0,0 +1,74 @@
+import find from 'lodash/find';
+import nconf from 'nconf';
+
+import ChatReporter from './chatReporter';
+import {
+  NotFound,
+} from '../errors';
+import { sendTxn } from '../email';
+import slack from '../slack';
+
+const FLAG_REPORT_EMAILS = nconf.get('FLAG_REPORT_EMAIL').split(',').map((email) => {
+  return { email, canSend: true };
+});
+
+export default class InboxChatReporter extends ChatReporter {
+  constructor (req, res) {
+    super(req, res);
+    this.user = res.locals.user;
+  }
+
+  async validate () {
+    this.req.checkParams('chatId', this.res.t('chatIdRequired')).notEmpty();
+
+    const validationErrors = this.req.validationErrors();
+    if (validationErrors) throw validationErrors;
+
+    const message = find(this.user.inbox.messages, {id: this.req.params.chatId});
+    if (!message) throw new NotFound(this.res.t('messageChatNotFound'));
+
+    return {message};
+  }
+
+  async notify (group, message) {
+    await super.notify(group, message);
+
+    sendTxn(FLAG_REPORT_EMAILS, 'flag-report-to-mods', this.emailVariables);
+
+    slack.sendInboxFlagNotification({
+      authorEmail: this.authorEmail,
+      flagger: this.user,
+      message,
+    });
+  }
+
+  async flagInboxMessage (message) {
+    let update = {$set: {}};
+    // Log user ids that have flagged the message
+    if (!message.flags) message.flags = {};
+    // TODO fix error type
+    if (message.flags[this.user._id] && !this.user.contributor.admin) throw new NotFound(this.res.t('messageGroupChatFlagAlreadyReported'));
+    message.flags[this.user._id] = true;
+    // update.$set[`inbox.messages.$.flags.${this.user._id}`] = true;
+
+    // Log total number of flags (publicly viewable)
+    if (!message.flagCount) message.flagCount = 0;
+    if (this.user.contributor.admin) {
+      // Arbitrary amount, higher than 2
+      message.flagCount = 5;
+    } else {
+      message.flagCount++;
+    }
+    update.$set['inbox.messages.$.flagCount'] = message.flagCount;
+
+    this.user.markModified('inbox.messages');
+    await this.user.save();
+  }
+
+  async flag () {
+    let {message} = await this.validate();
+    await this.flagInboxMessage(message);
+    await this.notify(null, message);
+    return message;
+  }
+}
diff --git a/website/server/libs/slack.js b/website/server/libs/slack.js
index fef4de93a5..09bef448b4 100644
--- a/website/server/libs/slack.js
+++ b/website/server/libs/slack.js
@@ -64,6 +64,42 @@ function sendFlagNotification ({
   });
 }
 
+function sendInboxFlagNotification ({
+  authorEmail,
+  flagger,
+  message,
+}) {
+  if (!SLACK_FLAGGING_URL) {
+    return;
+  }
+  let titleLink;
+  let authorName;
+  let title = `Flag in ${flagger.profile.name}'s Inbox'`;
+  let text = `${flagger.profile.name} (${flagger.id}) flagged a message (language: ${flagger.preferences.language})`;
+
+  if (!message.user && message.uuid === 'system') {
+    authorName = 'System Message';
+  } else {
+    authorName = `${message.user} - ${authorEmail} - ${message.uuid}`;
+  }
+
+  flagSlack.send({
+    text,
+    attachments: [{
+      fallback: 'Flag Message',
+      color: 'danger',
+      author_name: authorName,
+      title,
+      title_link: titleLink,
+      text: message.text,
+      footer: `<${SLACK_FLAGGING_FOOTER_LINK}?chatId=${message.id}|Flag this message>`,
+      mrkdwn_in: [
+        'text',
+      ],
+    }],
+  });
+}
+
 function sendSubscriptionNotification ({
   buyer,
   recipient,
@@ -137,5 +173,5 @@ function sendSlurNotification ({
 }
 
 module.exports = {
-  sendFlagNotification, sendSubscriptionNotification, sendSlurNotification,
+  sendFlagNotification, sendSubscriptionNotification, sendSlurNotification, sendInboxFlagNotification,
 };