AGMS Admits Falling Prey to Unsolicited Spam E-mails
Qwoter reported in the third week of June 2008 that the leading green computing solution provider Angstrom Microsystems Corp. (AGMS) revealed that it was aware of an illegitimate mail spam campaign that seemed to have extensively promoted the stock symbol of Angstrom Microsystems Corp. (AGMS).
Reports indicate that neither the firm nor its management was aware of the unwanted spam e-mail drive and since the company has never allowed such promotional drives, it was a fake scam.
This made AGMS the latest victim of the most recent stock spam. News updates further stated that early on June 1, 2008, a message reading "how to invest it" came to a Windows Live Hotmail ID.
As per researchers and stock spam experts, the message was promoting AGMS after the firm's May 30, 2008 announcement "Angstrom Secures Another Installation" on the Market Wire. In this unusual situation, real financial information or revenue realization was being made public.
Describing the stock spam, security experts alleged that at times, a stock manipulator purchases several low-cost shares. The spammer then deluges message boxes with hot tips regarding the said stock in order to increase the stock price. Some innocent investors purchase the stock, causing a sharp hike in stock prices.
The scammer then puts the shares in the open market at the pumped up prices, thereby leaving the regular investors high and dry, with their stock prices steadily dipping.
Occasionally, as in the case of Angstrom Microsystems, corporation insiders are involved in the scam.
According to the Boston-based Angstrom Microsystems Corp's Chief Executive Lalit Jain, nobody from his organization had approved the spam. Also, certain research suggested that the particular spam could be a Russian computer virus, reported Freep on June 22, 2008.
Reports indicate that Securities and Exchange Commission (SEC) has exposed numerous spam-related scams, consisting some related with fake news.
SEC gave the example of stock manipulator, Michael Saquella alias Michael Paloma, who was awarded a 10-year prison term in March 2008 for planning a pump-and-dump scheme for unlisted securities. The SEC advised online stock traders and net users to forward spam messages to firstname.lastname@example.org.
» SPAMfighter News - 09-07-2008