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Email scams, and how to detect them

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DIY Trader
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Just while I wrote a reply post on the subject, an email hit my inbox. If anybody is interested, let's analyse it and see if we can find some clues that should trigger our BS-Detectors.
Subject: Timing is Right
from: salim salim ([censored]@yahoo.com)
to: news@qualitystocks.net
Hello Traders,

The Next Gold Mining Breakthrough

This tiny gold company is about to rewrite the book on mining exploration...
And they're doing it just in time to catch the biggest gold bull market in a generation.
Make over 10,800% as this Canadian mining company breaks all the rules... and all the records.

Auric Mining Company (AUMY) is as an investment and management company involved in mining and natural resources projects. The company focuses its resources by investing in on-going projects to establish immediate cash-flow for the company and to provide profitability for its shareholders.

Dec. 16, 2011 /For Immediate Release / -- Auric Mining Company (OTC: AUMY.PK) (the "Company") reported that the Company has now proceeded with a preliminary deposit, in advance of a purchase and sale agreement, to purchase a gold property in the Abitibi Greenstone belt.

The Abitibi Greenstone Belt is where nearly a billion grams of gold have been produced to date and is near some of the largest gold reserves in Canada.
AUMY's claim is strategically situated to benefit from results of nearby operators. The main focus of gold mineralization is known as the Mile of Gold. The Company has both legal and financial obligations to complete before possession and any work can be started in the spring of 2012.
For obvious reasons, I can't get into too many details here... However it's no secret that getting in on big gold discoveries before they are announced to the public is a great way to make money...

Keep your eyes on AUMY at the open because it may be taking off with all the buzz and news. Definitely something to think about. As always, keep your eyes open for day trading opportunities during the day tomorrow as well on AUMY. Don't forget to book your profits while you're ahead.

View this Important Stock Report - http://finance.yahoo.com/q?s=aumy&ql=1
Quote of The Day

of hollow vessel filled with great stones, and fastened by a uninhabited, yet sufficient, by my labour, to furnish me with the For answer he nodded his head. One of the women jumped
Can you find more than these triggers?

  • I don't know this guy. Never heard of him.
  • He mails from an anonymous yahoo account.
  • Where have I heard that before? "biggest ... in a generation"
  • 10,800% is very specific: he "must know his subject"; I'd settle for an even 10,000%.
  • "Nearly a billion grams" - let's see: that's a Million kilograms or 1,000 tons. Really??
  • "I can't get into too many details here" - no, let's keep it hush-hush; how long is your mailing list?
  • "... at the open" - ever heard about "Amateurs open the Market"?
  • All the "Important Stock Report" tells me: AUMY exists; but nearly all categories are N/A
  • And then pay attention to the gibberish at the end: An often-used ruse to confuse automatic SPAM detectors. For some reason, that got it past mine as well.
And what might the purpose be? One reason comes to mind: This guy has a large holding, or intends to buy a few Million at 2c; dummies that fall for his shtick will help him drive the price up, so he can sell out at a handsome profit.
 

So_Cynical

The Contrarian Averager
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Its crap because it reads like someone trying to sell me something... that's enough for me....but its just what some others want and need.
 
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One immediate warning sign is where it is traded. It is a pinksheet stock (OTC:AUMY.PK). This is what Investopedia says about the pinksheets

OTC Markets
The pink sheets service is a loosely regulated over-the-counter, decentralized market. There are few requirements to being listed on this network, as companies do not have to file with the SEC nor keep updated financial information. The only major requirement to being listed is to have at least one market maker, who must be registered with the SEC and a member of the NASD. The market maker is responsible for quoting the latest trading price of the stock on the pink sheets network. This is a highly speculative and risky place to invest. Investores would be wise to only invest what they are willing to lose


I once owned a US Nasdaq listed stock that had few competitors. Then out of the blue, this PK stock announced it had developed a competitive product and had scored a huge deal with a major pacific rim manufacturer. I decided to do some checking and discovered this major pacific rim company didn't even exist. Everything about the company and the deal was bogus. Several letters by me and others to both the SEC and the Pinksheet regulators resulted in nothing. The company continued for another 10 years announcing bogus deals, declaring dividends (to pump the stock) that never got paid and many other tricks. No action was ever taken in spite of a myriad of complaints. I think the attitude was that anyone silly enough to believe what a PK says ought to be defrauded. Also, when the SEC won't go after the Enrons and other big fish because they haven't the resources, they won't have any interest in pursuing pinksheet companies.

Also, look at the message board for this stock on Yahoo. Mainly pumpers except for a few posters warning of it being a scam.

http://messages.finance.yahoo.com/mb/AUMY.PK
 

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One immediate warning sign is where it is traded. It is a pinksheet stock (OTC:AUMY.PK). This is what Investopedia says about the pinksheets

OTC Markets
The pink sheets service is a loosely regulated over-the-counter, decentralized market.
Thanks for that, Bellenuit;

I had been puzzled about the "PK", but never to the extent that I'd tried to research what it meant. :)
(I trade predominantly ASX, NSX; if an O/Seas share tickles my fancy, I use CMC CFDs.)
 
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I only need one clue - if the email is unexpected or not from a highly trusted verifiable party, then in the trash it goes.
 
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Another thing to check, particularly with Pinksheet stocks, is the source of any glowing reports.

Look at the (currently) 3rd entry on the Yahoo board for this stock

http://messages.finance.yahoo.com/mb/AUMY.PK

and go to that report:

http://growingstocksreport.com/?stock=AUMY.PK

Then click on the "disclaimer" shown at the bottom right hand corner to get here:

http://growingstocksreport.com/disclaimer.php

If almost everything stated there doesn't set alarm bells ringing, this extract should:

RDI may sell any shares of the Profiled Companies for less than target prices set forth in the Information and may profit by selling their securities while investors are purchasing during the same time RDI publishes the Information.

These scam companies typically give shares in their company to these so called research companies for free and both the scam company and the researcher sell into the orchestrated pump that the report and associated message board posts (by insiders) generate.
 
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According to my inbox, there cannot possibly be a global financial crisis because there's so much money (billions of pounds, euros, USD - you name it) sitting in trust accounts ,right around the globe, simply awaiting my acceptance. All I have to do is provide my identification and banking details and the relevant trustees will happily give me half! I've actually won more first prize lotteries than I've ever actually entered - isn't it great!

It's so wonderful that there are so many charitable people around the world - and to think that they're willing to share their fortunes with me - a total stranger! My faith in the integrity of the human race has been restored by these faceless altruists.

Anyway, I decided to pass on the good cheer. Since I didn't greatly need the money for myself I decided to supply the banking details of one of my neighbours instead (he's been a bit down on his luck lately). He'll be thrilled to bits when he finds out what a good turn I've done him.
 

tech/a

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Anyway, I decided to pass on the good cheer. Since I didn't greatly need the money for myself I decided to supply the banking details of one of my neighbours instead (he's been a bit down on his luck lately). He'll be thrilled to bits when he finds out what a good turn I've done him.
Friend of mine signed up another friend of his to " encyclopedia Britannica " as a practical joke.
Cost him a good friend as the delivery took place with the $3999 bill.
Took him ( the friend) 3 yrs to sort it out.
 

Julia

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From: "FBI OFFICE" <BlossomCraft@aol.com>
To: <undisclosed-recipients:>
Subject: WE THE FBI HAVE WARRANT TO ARREST YOU GET BACK TO US FOR YOUR OWN GOOD
Date: Thursday, 28 June 2012 5:55 PM
This arrived in my inbox today with an attachment which will doubtless lead to trouble.
Is it even remotely conceivable that, with all the warnings, anyone would respond to this sort of stuff?
 

prawn_86

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This arrived in my inbox today with an attachment which will doubtless lead to trouble.
Is it even remotely conceivable that, with all the warnings, anyone would respond to this sort of stuff?
An interesting story about this on the Tech report on Sky Business last week.

Basically the more ridiculous they make them, the more chance that the people who do reply are fully committed and beleive it, so they wont get a bunch of people umming and ahhing, just the completely stupid one.

Interesting way of looking at it i thought
 
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