MCLEAN, Virginia, May 22, 2013 /PRNewswire/ --
In March 2013, pump and dump spam struck back with a force not seen since 2008. It attempts to lure email recipients into buying cheap stock with a low trading volume which the spammers previously bought at a low price. Once enough users have bought shares and the stock price has risen, the spammers sell - resulting in gains for them and losses for other buyers. In the case of a typical pump and dump campaign launched on April 19, the spammers bought the shares for as low as $0.22 and then sold them for as high as $0.40, causing the stock to plummet to $0.20. In this way, the spammers gained more than 80 percent while the victims lost up to 50 percent (estimates based on analyses of the stock during the campaign).
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