[funsec] Pump & Dump spamming works

Nick FitzGerald nick at virus-l.demon.co.uk
Thu Mar 8 17:05:14 CST 2007


Richard M. Smith wrote:

> Wow, almost a 150 fold increase in share volume after spam barrage.  It also
> looks like someone can make money on P&D stocks, if they get in early and
> then get out quickly.  ...

This is not news -- at least two fairly widely reported academic 
studies published last year put some numbers on what anyone with a 
brain and who looks at their spam already knew...

> ...  In this case, there was a 2-day window to "invest"
> and then unload.

That's still a fairly risky bet, as the spammers seem to jump out 
fairly early because they know there is no way of predicting the 
collapse point of these completely irrational stock price swings.

> http://online.wsj.com/article/SB117337878583331180.html?mod=technology_main_
> whats_news
>  
> 
> SEC Suspends 35 Small Stocks In Crackdown on Spam Hyping
> 
> Associated Press
> March 8, 2007 1:48 p.m.

As it's an AP item and not WSJ-specific, those without a WSJ sub yet 
interested in seeing the full story, try, for example:

   http://www.technologyreview.com/Wire/18318/


Regards,

Nick FitzGerald



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