Wednesday, April 12, 2006
How penny-stock spamming works
Two german scientists studied the effects of penny-stock spamming and published the first results.
From November 2004 till February 2006 Rainer Böhme (Dresden University of Technology) and Thomas Holz (University of Mannheim) analyized over 150 spam messages and the resulting chart of the promoted stock. They were able to prove that stock-spam results in significant rise of the prize and trading volume for a few days. After this the stocks usually crash when the spammers sell their assets. This first results were published at the CanSecWest/core06 conference
in Vancouver, the final paper is due for the Fifth Workshop on the Economics of Information Security
in Cambridge next June.