Spammers can manipulate stock markets

Posted on Sunday, August 27 2006 @ 8:18 CEST by Thomas De Maesschalck
BBC News reports a study has confirmed that spam messages that promote stocks and share can have real effects on the stock markets:
E-mails typically promote penny shares in the hope of convincing people to buy into a company to raise its price.

People who respond to the "pump and dump" scam can lose 8% of their investment in two days.

Conversely, the spammers who buy low-priced stock before sending the e-mails, typically see a return of between 4.9% and 6% when they sell.
It's estimated that about 15 percent of the 730 million spam e-mails that ere send eveyr weeks tout stocks. More info over here.

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