Stock Spam
Stock spam is growing rapidly because, according to a study by Jonathan Zittrain, it works well:
Sophos, a Massachusetts-based supplier of software for protecting companies and consumers from online threats, reported in July that 15 percent of all junk e-mail messages are now stock spam, up dramatically from less than 1 percent 18 months ago.
The researchers discovered that if a spammer bought a stock a day before beginning heavy touting, then sold the morning after the first day of touting, the average return on investment was 4.9 percent. And more effective spammers saw a 6 percent return. On the other hand, if a victim were to invest $1,000 in a stock on the day of heaviest touting, that investment would be worth, on average, $947.50 in the two days following the spamming campaign.
“The thing that surprises most people is that the company [whose stock is being touted] is often not aware their shares are being manipulated in this way,” adds O’Brien. “They’re often just as much the victims.”
