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.”
August 25th, 2006 at 10:29 am
I have noticed a lot more stock spam lately in my own junk mail. I kinda prefer it to the normal cialis and nigerian scams. My favorites are the ones that are made to look like someone is leaking inside information, but accidentally sent it to your email address.
August 25th, 2006 at 10:37 am
I was thinking it would be fun to track the stock spams that make it through my SpamAssassin filter and keep track of them. The theory would be that if the sender is good enough to get an email through my Bayesian filter, then it might be something interesting.
It turns out someone already is.
August 25th, 2006 at 4:27 pm
I wonder if any hedge funds are using this strategy :>)
George
August 25th, 2006 at 6:16 pm
Richard: it becomes a problem when you have a stock market blog, because it is more difficult to tell what is spam and what isn’t
Dave: thanks for the link
George: I hope not
November 27th, 2006 at 1:27 am
I randomly check to see if the stock being spammed is up some 400%, but rarely…I just delete it all. As should everyone, don’t get suckered.