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Pump-And-Dump Spam Invites Companies To Join Up
SecurityProNews
Staff Writer
2006-09-05
 Insider Reports RSS Feed
A new spamscam is making the rounds inviting recipients into organized crime. Sophos calls it a "pump-and-dump" stock spam campaign offering the chance, for a percentage fee, to manipulate stock prices.
The newest angle to this scheme is that the spammers aren't just offering up this service to would-be investors, they're inviting the companies themselves to get in on the action, at a lower percentage fee than they charge investors.
For a six percent fee, the senders claim they can boost the company's stock price before unloading it for a profit. Investors not affiliated with the companies are encouraged to by "underrated stock" just before the market price is artificially inflated, at a fee of 30 percent.
The spammers claim to be able to boost stock prices by up to 250 percent, and even offer a free one-day trial.
"Not only do these crooks boost their own share price by artificially playing the market, but now they have the audacity to try and get paid for it by the companies involved," said Graham Cluley, senior technology consultant for Sophos.
"This twist also sees the scammers offering information on upcoming stock manipulations to investors. By actively manipulating stock prices by sending bogus information out via junk email, they have an insight into which shares are likely to shift position next. Investors must avoid these offers at all costs, as they may find themselves caught out in a criminal sting which leaves them out of pocket."
Sophos reports that pump-and-dump stock campaigns account for approximately 15 percent of all spam, up from 0.8 percent in January 2005.
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