Penny Stock Spam Can Lead To ID Theft

I would imagine many people have been exposed to the original online stock scheme scam in which spammers send out stock picks on penny stocks, creating a buzz that artificially drives up the price of these otherwise worthless stocks.

penny-stock-spam

As the price rises,the spammers liquidate their own holdings and walk away with a handsome profit, leaving the buyers that they suckered in with worthless stock.

This scam is one of the oldest you will find online but now it has been recycled and modified in order to trap users of public computers, especially those who access the internet via hotels.

Sophisticated scammers utilise software known as ‘keyloggers’ that will track and record the key strokes of these computers, especially when guests are checking out their online portfolio accounts.

By stealing the guest’s accounting identity, the fraudsters are able to buy a large volume of these penny stocks, in order to drive up the price, then liquidate their position to make a big profit, whilst leaving the stolen account stuck with those stocks.

This type of securities fraud is becoming more common as the amount of people who engage in online trading is forever growing.

The best means of prevention is to ensure that you have a secure connection to the internet, and also to ensure that you do not have malware on your computer, by running virus scans and anti-adware applications.

About Lee Munson

Lee's non-technical background allows him to write about internet security in a clear way that is understandable to both IT professionals and people just like you who need simple answers to your security questions.

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