Spammers now send out tips to push up the price of shares that can then be sold at a profit.

Share price scams, also known as “pump-and-dump” schemes, involve mass-mailing misleading tips about “high-performing” companies. Victims are encouraged to invest in a company’s shares, pushing up the price artificially; the scammer then sells their own shares at a profit, before the price collapses.

Pump-and-dump mail has all the characteristics of spam. It is unsolicited commercial mail, usually distributed from “zombie” PCs that have been taken over by hackers, and it uses obfuscation techniques to avoid anti-spam software (e.g. the subject line may use “st0ck” instead of “stock”). These emails also make inaccurate claims, although they may include some genuine information from the featured company to appear more plausible.

These scams harm both investors and small companies. When the bubble bursts and share prices plummet, investors lose their money. The collapse in value can also be devastating for companies that have limited assets.

The advice for dealing with these scams is the same as for any other spam: don’t buy, don’t try, don’t reply.