Select Page

Cyren Security Blog

The Cyren Security Blog is where Cyren engineers and thought leaders provide insights, research and analysis on a range of current cybersecurity topics.

Wolves of the Wall Street Internet

Where there is money to be made, you can be sure an Internet scammer/spammer will be there. Wall Street is no exception. In the latest pump and dump rendition, scammers acquire a large quantity of an inactive, inexpensive, “bioceutical” penny stock; in this case, 417,00 shares at $0.19 per share, spending $79,230. Then the email campaign starts, suggesting that the stock “RCHA” is on the move and now is the time to buy. Well-known investor and news outlet logos are added to the emails to suggest legitimacy.

Email sample

As unsuspecting (and likely undereducated) investors fall for the scheme and purchase the penny stock, the stock price rises. If we assume that the scammers sell at $0.34, then they’ve made a profit of approximately $63,000, although they may have acquired and sold additional stock along the way. That’s almost an 80% return on the initial investment. As Gorden Gekko might say “Not bad for a City College boy”.

Stock prices

Oakomont Stratton

For those of you familiar with Leonardo DiCaprio’s latest Academy Award-nominated film, The Wolf of Wall Street, you’ll be amused at this pump and dump schemers choice of pseudonym’s “Oakmont Stratton”. (Prosecuted in the 1990s for stock and investment fraud, the real owners of the firm Stratton Oakmont eventually pleaded guilty to 10 counts of securities fraud and money laundering.)

Download your copy of the Q1 2014 Internet Threats Trend Report here:

You might also like

Phishing with QR codes

Don’t Scan or be Scammed By Maharlito Aquino, Kervin Alintanahin and Dexter To In 1994, a type of the matrix barcode known as the Quick Response code, now widely known as QR code, was invented by Masahiro Hara from a Japanese company Denso Wave. The purpose of the...