SEC Cracking Down On Stock Spam

The SEC doesn’t like stock spam. They’ve suspended trading in three companies as part of an anti-spam initiative, meant to deter e-mail campaigns that defraud investors.

From Reuters:

The SEC earlier this year launched an initiative to cut the profit potential for stock-touting spam, and said on Thursday that spam-related complaints to its online complaint center have been cut in half.

The agency also noted that recent reports indicate a significant drop in the stock market spam getting to e-mail inboxes.

“Because of our aggressive enforcement efforts, there has been a reported 30 percent drop in financial spam, and that means fewer investors are getting ripped off,” said SEC Chairman Christopher Cox in a statement.

The Symantec Internet Security Threat Report released on Sept. 17 said the decrease “is due to a decline in spam touting penny stocks that was triggered by actions taken by the United States Securities and Exchange Commission, which limited the profitability of this type of spam by suspending trading of the stocks that are touted.”

Yay, get ‘em! So far the SEC has suspended trading in 39 different companies. “This initiative will continue, and we are going to pursue those behind these fraudulent campaigns,” said Bruce Karpati, the SEC’s assistant regional director in the New York office.

US SEC says its anti-spam efforts cutting fraud [SEC]
(Photo:MovieScreenshots)

Comments

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  1. Trai_Dep says:

    Yay!

    Tho feel sorry for the innocent holders of the stock. But I guess they’re okay once the spam wears off.

  2. cmhbob says:

    Per [www.sec.gov], you can forward any spams to enforcement@sec.gov

  3. deadsalmon says:

    Sigh… if someone is foolish enough to buy stock based upon spam, I can’t say that I have a whole lot of sympathy for them. Maybe the SEC should just let it ride and consider it stupid tax.

    I mean, we’re not talking about falling for submitting personal information to a convincing phishing site or mistakenly downloading a file with a virus hidden inside — this is about people who are getting an email from someone they’ve never heard of that suggests buying a random stock… and they go out and actually do it. To me, that’s just unthinkably stupid.

    But then, you know what they say about a fool and his money.

  4. FLConsumer says:

    @trai_dep: Having seen the stock spams, there won’t be many (if any) legitimate people hurt by the stock’s trading suspended for a few days/weeks. These are crap stocks, which is why they’re hyping them. In many cases, the SEC’s doing the pre-existing investors a deal by temporarily stopping the bleeding they were enduring.

  5. Rusted says:

    @Rosstafari: “Are soon parted.” No excuse for not doing the research. Stupidity tax is right, though it can hurt innocent bystanders.