Spam Levels Plunge after US SEC’s Initiative
In an anti-spam measure by the US Securities and Exchange Commission, trading in three companies was suspended on October 4, 2007 for allegedly deterring e-mail campaigns defrauding investors.
The companies suspended till October 17 were Prime Petroleum Group Inc., Alliance Transcription Services Inc., and TW Christian Inc. The SEC move was in accordance to its seven-month long anti-spam Initiative.
The SEC revealed that all the three companies trading on the Pink Sheets are vulnerable to the spam stock promotion due to inadequate disclosure of business operations, assets, or/and management, current financial situation or/and financing arrangements over issuing shares of the companies.
Seattlepi on October 4, 2007 quoted Christopher Cox, Chairman, SEC, stating that, SEC is working against the stock market spam mails flooding their mail inboxes since too long. He added that due to their enforcement efforts, a 30% fall in financial spam has been registered, indicating that fewer investors are being defrauded.
Earlier in 2007, SEC started an initiative to slash the margin potential for the stock-related spam. On October 4, SEC announced that spam mails-related complaints to its online complaint center have reduced to half.
It also observed recent reports suggesting a huge fall in spam related to stock market reaching mail inboxes.
The SEC revealed that 100 Million messages from stock promoters each week promote small companies in a bid to profit from hikes in the share prices.
Symantec Corp, the leading name in security software globally, found a 30% slump in financial spam, number two mass mail category in the initial six months in 2007.
In its September 2007 report, the company attributed the decrease to the SEC crackdown. Symantec ranks spam promoting commercial products first in prevalence with health-related emails at third place.
Following the initiative, the SEC's suspension of securities trading affected 39 companies with a 30% drop in stock market spam.
Bruce Karpati, Assistant Regional Director, SEC, New York, declared that this initiative would continue, and they're going to track those behind these deceptive campaigns.
Related article: Spam Scam Bags a Scottish Connection
» SPAMfighter News - 23-10-2007