But for internet spammers there actually is some money to be made in offering up penny stock tips like this example below.
The BBC website provides a fascinating look at how these unsolicited e mailing spammers are collecting dividends on the old principle of buy low, sell high, in this case it’s more like buy low, spam high. Having forced the price of questionable stocks up by touting them unsolicited to the billions of users of the internet world wide, they then sit back and unload their stocks.
These folks typically buy their stocks, then the next day launch their massive bulk mailing of “hot tips” to those foolhardy enough to take a flyer on their folly. The one day burst of activity is good enough to push the stock price up ever so slightly, giving them a chance to cash in, move their stock and then move on to the next big tip and the next school of fish swimming in the internet ocean.
The spammers are making typically 4.9 to 6% gains on their stocks when they sell, while the responder to the mass mailings typically lose 8% of their investment in just two days. On average, those that take the "hot tip" and call up their brokers or click on a day trader website, lose $52.50 for every $1000 that they invest. That of course is the total on the stock, the broker fees to buy and sell tack on some more cost to the faint hopes of getting rich quick.
This on line form of stock phishing accounts for 15% of the 730 million spam e mails sent out weekly, though some observers say that is a rather low estimate of the amount of financial spamming going on these days. Suggesting that there are quite a number of folks out there in internet land willingly handing their money over to quick buck artists who are raking it in at the click of a mouse.
Best defence to keep your money close and your spamming tipsters at more than an arms length is simple. Before you hit reply and then send, hit delete.
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