stock-pumping via website cracking

Posted on: Fri, 11/03/2006 - 10:43 By: Tom Swiss

The Motley Fool reports on a stock-pumping fraud scheme involving a clever use of compromised on-line brokerage accounts:

The new breed of brokerage account hacker isn't looking to milk your account dry. There are safeguards against that, since account redemptions would be delivered in your name to your home. No, a broker hacker is simply after the ability to pump up a thinly traded stock's price by selling your stocks and then using the proceeds to snap up shares of a targeted speculative stock in your account.