[pchelpers] News:Pumping And Dumping Is Much Faster When You Can Do Both Yourself With Hacked Accounts

from the much-more-efficient-that-way dept
Back during the first dot com bubble, the stock pump and dump scam
worked by buying some stock, and then sending out a bunch of spam
promoting the stock, then quickly selling your own stock. While a lot of
the new deluge of spam seems to be trying that same thing (and,
apparently, it's working), some organized crime groups apparently found
a much more efficient way of doing things. As mentioned late last year,
some scammers hacked a bunch of accounts at various popular online
brokers for use in a pump and dump scam. The Washington Post has some
more details on exactly how it worked, as the SEC has brought charges
against one man involved in the scam. It's basically exactly what you'd
expect. The guy bought a bunch of a certain penny stock with his
account. Then logged into a bunch of other accounts, sold all their
stock and used the proceeds to buy the stock that he had just purchased,
pumping up the price. Then, quickly sell the stock in his own account
and cash out. The article details one example of this, where he cleared
about $13,000 in less than 2 hours.

More here:
http://techdirt.com/articles/20070126/010554.shtml
-- 
John Durham
Site http://modecideas.com
Server hosted on Ubuntu 4.10
Good advice is like good paint. It only works when applied.



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