Thanks for a great thread - I don't think it should die just yet so to add I googled like you suggested and found a mine of information. For those who question HC's stance on multi-nics then you should read the following:
http://ftp.sec.gov/investor/pubs/cyberfraud.htm
Bulletin Boards Online bulletin boards - whether newsgroups, usenet, or web-based bulletin boards - have become an increasingly popular forum for investors to share information. Bulletin boards typically feature "threads" made up of numerous messages on various investment opportunities.
While some messages may be true, many turn out to be bogus - or even scams. Fraudsters often pump up a company or pretend to reveal "inside" information about upcoming announcements, new products, or lucrative contracts.
Also, you never know for certain who you're dealing with - or whether they're credible - because many bulletin boards allow users to hide their identity behind multiple aliases. People claiming to be unbiased observers who've carefully researched the company may actually be company insiders, large shareholders, or paid promoters. A single person can easily create the illusion of widespread interest in a small, thinly-traded stock by posting a series of messages under various aliases.
Share promotions & 'hot tips' What are share promotion & ‘hot tip’ scams?
Warning signs 1. Protect yourself from share promotions & ‘hot tip’ scams 2. Do your homework 3. Decide 4. Report them
What are share promotion & ‘hot tip’ scams?
Share promotions and ‘hot tips’, also known as ‘share ramping’, are scams that usually come in the form of an email or a message on an internet forum. The messages usually encourage you to buy shares in a company that they predict is about to increase in value.
The person offering you this advice is usually either someone who wants to increase the share price so that they can sell their own shares for a profit, or a mass-marketing company paid by the scammer to send out thousands or even millions of emails.
These scams work by giving the impression of an ‘inside tip’ and stressing that you need to act quickly. The scammers are trying to boost the price of the stock so they can sell shares they have already bought and make a huge profit. The share value then goes down dramatically. The people who bought shares based on the advice in the messages can be left with large losses, or with shares that are just about worthless...............
Report them Please let ASIC know if you've seen a dodgy share promotion or ‘hot tip’. You should also spread the word to your friends and family to protect them.
