Man accused of hack-pump-dump scam extradited to USA

Graham Cluley
@gcluley

If you were following security trends a few years ago you’ll have been very familiar with what is known as the pump-and-dump stock scam.

What happened was spammers would use junk email to pump up the price of a thinly-traded stock (generally by spreading fake good news about a company), only to make their fortune shortly afterwards when they dump their own holding.

The problem became so large that the US Securities and Exchange Commission (SEC) felt forced to suspend trading in a number of companies as they were found to be commonly referenced in pump-and-dump stock email campaigns.

Pump-and-dump scams, which had once accounted for some 25% of all spam, ultimately went the way of the vinyl record and are much less commonly encountered today.

Last September I reported on a new style of pump-and-dump share price manipulation scam. Thirugnanam Ramanathan, a native of Chennai, India, and legal resident of…

Read more in my article on the Naked Security website.

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Graham Cluley is a veteran of the anti-virus industry having worked for a number of security companies since the early 1990s when he wrote the first ever version of Dr Solomon's Anti-Virus Toolkit for Windows. Now an independent security analyst, he regularly makes media appearances and is an international public speaker on the topic of computer security, hackers, and online privacy. Follow him on Twitter at @gcluley, or drop him an email.