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Who Benefits from Spam, Anyway?

Elbowgeek asks: "I've noticed that the vast majority of spam emails I receive are barely literate, to the point that in some cases one can hardly discern the product or service being advertised. Since most people are savvy/jaded enough to detect these entities that are not filtered automatically, just where does the profit motive from these messages come from? Is it simply the theory that if you send enough spam messages you're very likely to hit enough gullible recipients to make an acceptable amount of money? Does anyone have any insight on this dark underbelly of Internet advertising?"

19 of 109 comments (clear)

  1. To many stupid greedy people. by jellomizer · · Score: 4, Insightful

    Well you can assume that some of the Spam is static used to detrain spam filters. But for most cases Spammers make money in sending the Spam, Not selling the services that goes with it. So say they charge $10,000 for a Million emails. So unexpecting company or some poor smuck think he is going to get rich quick with this stuff will pay the spamming companies so much to give the link to their website and sell a product. But there is no promise that they will sell the product they only promise to deliver a million emails. So what normally happens the Smuck goes bankrupt and the Spammer gets the money. If the Spammer can get past the Spam filters then they can promise better visibility.
    There is basically an endless pot of Smuck who think they can get rich quick by selling sex toys, Investing in stock tips...

    --
    If something is so important that you feel the need to post it on the internet... It probably isn't that important.
    1. Re:To many stupid greedy people. by oyenstikker · · Score: 3, Informative

      Bingo. Nobody actually needs to ever buy the product for spam to be profitable. Thats why it won't go away.

      --
      The masses are the crack whores of religion.
    2. Re:To many stupid greedy people. by John+Hasler · · Score: 4, Insightful

      > Investing in stock tips...

      Many of the stock tip spams are attempts to pump a stock. I suspect that they often work.

      --
      Warning: this article may contain humor, sarcasm, parody, and perhaps even irony. Read at your own risk.
    3. Re:To many stupid greedy people. by Pharmboy · · Score: 3, Insightful

      Many of the stock tip spams are attempts to pump a stock.

      Although not my experiences are more anecdotal than imperical, I HAVE taken the time over the last year to track at least a couple dozen stocks that I have received spam for, up to a week after I received the spam. (finance.yahoo.com) About half the time, I have seen quick pops followed by quicker declines, indicating enough people purchased to drive the stock up 5%-10% (or a little more), followed by a decline within 24 hours pushing the same stock to the original price or a little lower.

      Maybe 30-40% of the time, the price didn't seem to change much (maybe not enough emails were sent) or the fluxuation was inline with the stock's trends, so it couldn't be determined if the spam did anything. The remaining 10%-20 it seems the stock simply slid in price (say, 3-10%) with no rise at all.

      So I can see how someone could pump up stocks and on average make money from spamming but it isn't always a sure thing. I have NOT heard of the SEC or any other agency arresting anyone for this, which seems to be clearly illegal, spam or not.

      --
      Tequila: It's not just for breakfast anymore!
    4. Re:To many stupid greedy people. by bluu · · Score: 3, Interesting

      I did the same thing. I took a spam with a very clear disclaimer (although they used a tiny font):

      [...] We have received 250.000 free trading shares from a third party, not an officer, director or affiliate shareholder. We intend to sell all 250.000 shares now, which could cause the stock to go down. This company has : negative cash flow from operations, no revenues in its most recent quarter, an accumulated defecit, a negative net worth, nominal cash, a going concern opinion from its auditor and related party transaction. [...] This is a penny stock and is a high risk security. URGENT: Please, Please Read the Company's SEC filings before you invest.

      The stock was ASIQ.OB, before this spam, it was around $0.25
      So the 'third party' gave around $62.500 to the spammer in free shares. Few days after, the stock was priced around $0.75
      If the spammer sold everything at this price, he actually gain $187.500.

      The 'third party' bought probably a million or more of trading shares. Imagine how profitable this operation was for both of them.

  2. The short answer by jone_stone · · Score: 5, Insightful

    The short answer: yes. Send out a million emails and get a .1% response and it's more than worth it.

  3. So the question really is... by whoever57 · · Score: 3, Funny

    who benefits from all the badly formatted spam? Wasn't there a story about this a day or 2 ago: someone suggested that it wa an attempt to train baysean filters to accept spam?

    --
    The real "Libtards" are the Libertarians!
  4. Not everyone makes a profit... by Total_Wimp · · Score: 4, Insightful

    It's just like every other business out there. Some people don't know how to run them. Unfortunately, with spam, these idiots are able to make a major anoyance of themselves with their ill-concieved, badly run catastrophies.

    Trust me, the illiterate folks really don't make any money. But they're only part of your spam. The one where, you know, you can actually find some information on how to buy a product? They're doing ok.

    TW

  5. Don't you read Slashdot? by tommertron · · Score: 3, Insightful
    http://it.slashdot.org/it/06/08/09/1523207.shtml

    Apparently a lot of the 'gibberish' spam not trying to sell you anything is just there to try to untrain the spam filters so the next one that does try to sell you something might slip through. Or it negates the spam filters' effectiveness so much that people have to start looking in their spam filters for actual messages.

    Personally, I think there's a lot less of a greed factor right now than there is an 'us vs' them' factor. I really think it's just getting to be an elaborate game for these spammers now - all they're trying to do is thwart the filters, and they've forgotten all about trying to dupe people out their money.

    --
    Random rants about technology: http://technorants.blogspot.com
  6. There are two layers at work by MarkusQ · · Score: 3, Insightful

    There are two layers at work; the spammers and the "vendors" they spam for. The spammers are paid to spam, but they don't really care if the product sells or not. It's just like any advertising--magazines are paid to print your ads, but if they ads don't work, it's not their problem.

    If you extrapolate normal advertising out by a few orders of magnitude (dumber, cheaper, wider distribution, etc.) you get spam. If you don't extrapolate out far enough (and find yourself in direct mail or telemarketing), no worries. Just keep going in that general direction a while longer, and eventually you'll come to spam.

    --MarkusQ

    1. Re:There are two layers at work by MstrFool · · Score: 3, Insightful

      Not so, and he didn't say that none of the adds sold anything, he somply said that the spammer doesn't care if they do or not. Just as there are large numbers of people that do reply to spam, there is also a large enough group of people willing to pay spammers to spam for them. You get $10,000 from one guy and it cost you next to nothing. How long would you be willing to wait for the next sucker to ask you to spam for them? So the first guy got nothing and went broak, a little sweet talking and waving of numbers and you have a new person willing to pay you. Do that 10 times in 1 year and that's a nice $100,000 in your pocket for doing less then a days worth of work all year. In time, people will stopp falling for it, but by then the nest generation of idiots is jumping to pony up the cash. Some times I hate having ethics... I could really use that money my self.

      --
      Question reality.
  7. Which of course brings up the question . . . by Rachel+Lucid · · Score: 4, Interesting

    Is there any point left in spam but to keep spam-blocking companies in business? After all, Internet Security is quite the nice racket...

  8. Re:My theory by pilkul · · Score: 4, Insightful

    Um.

    1. Spam has never been used to advertise respectable products.
    2. The motive for virus writing nowadays is profit, same as spam. Viruses let you put up adware and create zombie hordes for spam forwarding or DDoS blackmailing.
    3. In the past, the motive for virus writing was not to hurt other people, but simply a kind of power trip or experiment. For proof, look at how very small the proportion of viruses that intentionally delete data is. The psychopathic "hurt as many people as possible" mindset is extremely rare.

  9. lots of kinds of spam by bcrowell · · Score: 3, Informative

    I think there are lots of different kinds of spam, and therefore lots of different answers to the OP's question. Examples:

    -A spam that they want you to click on in order to see porn. If you click on it, it really does lead to porn, and they get ad revenue.

    -A spam that's trying to find out whether your address actually receives mail. If you click on the opt-out link, they've verified that the address works. They then add your e-mail to a list that they send to other spammers.

    -The Nigerian scam. Yes, people really do fall for this. There was a famous case here in Orange County recently where a rich, elderly doctor blew hundreds of thousands of dollars on it.

    For a spammer who owns a botnet, the cost of sending a spam is zero. When your product costs zero to produce, you can come up with a lot of ways to sell it, and still make a profit.

  10. I get these too. by TheZorch · · Score: 3, Interesting

    My regular email address gets them from time to time but its my Final Fantasy XI PlayOnline email address that gets them the most.

    They are emails with gibberish for subject lines and gibberish for contents. They are sentences which make no sense what so ever, random words put together that have little meaning at all. There's no ad, no link, and the addresses they are sent from are bogus (I know, I tried finding them). A few of these emails have originating address of @ds1.yahoo.com or @server1.paypal.com or @ddl.amazon.com and so on and so forth. The actual address itself is made up of random letters and numbers.

    My theory, like those suggested aboove, is that these emails are sent by "Botnets" to random email addresses in order to see which ones don't bounce. This can be in preparation for sending ad-like spam or a prelude to a virus infestation. Or, like someone else suggested it could be a form of coded communication which is widely broadcasted in order to prevent the authorities from find out its true intended destination.

    --
    Michael "TheZorch" Haney
    thezorch@gmail.com
    http://thezorch.googlepages.com/home
  11. Re:Not true by MarkusQ · · Score: 3, Informative
    Spammers are paid a percentage or flat fee based on what is sold with their referrer ID.
    I beg to differ. First, such a system would be all but unenforceable, and I can't see the spamers (who are the ones that will be risking prosecution, after all) saying, "Oh sure, you can pay me when you sell something; I can tell you guys are honest." But it also doesn't fit the data. Let's take a look at my in box, shall we?
    1. Some folks selling "C-i-a-l-l-i-s" (or trying to). Looking at the raw message, I see one http: link, to a .info domain, with nothing beyond the FQD. They could of course have a separate domain for each spammer they used, but given how specific their domain name is it doesn't seem likely.
    2. A blank spam. No subject, no body, no referrer ID.
    3. A note from my wife. No referrer ID.
    4. A pump and dump stock scam spam, no response info of any kind, and thus untraceable. No web bugs or other place to hide a refere ID.
    5. A question from one of my company's laywers. No referrer ID that I can see.
    6. A note from a psycho that believes the internet is spying on him. Spam, in a sense, but I think he's trying to warn us out of the goodness of his heart. No ID of any kind, and I suspect that if he knew his emails contain a message ID and a give an idea of the route they followed getting here, he'd faint.
    7. Image spam; quite possibly tracable (I don't know what they image is; I don't fetch 'em).
    8. Guttenspam. No payload.
    9. Another image spam.
    10. A note from my boss commenting on one of my earlier /. posts.
    11. Another anonymous stock tip.
    12. And another.
    13. Watch replicas, one link, with only a FQD.

    Sorry, I'm just not seeing the referrer IDs you speak of.

    --MarkusQ

  12. Re:Weird one word spam lately... by beadfulthings · · Score: 4, Interesting

    Eeuwh. Believe it or not, they can cause you many Maalox moments under certain circumstances.

    Take a close look at these. If (a) you have a website, and (b) they come in pairs, or especially if they come in threes, they can be a signal that somebody is evaluating you for a bit of cross-site scripting--or worse yet, that they have you. They may look as though the sender has forged and garbled your email address--but then again, they may not look like that. Little spates of one-word messages merit a second glance. They're like the odd little sounds you might hear if someone were trying the doorknobs of your house in the middle of the night.

    --
    "Here's what's happening. You're starting to drive like your Dad..." - Red Green
  13. Re:Microsoft has and would benefit from spam. by rk · · Score: 3, Funny

    "So Microsoft intentionally ships crappy software so that spammers will disrupt communication among open source programmers? Did I get that right?"

    No, silly! Microsoft intentionally ships crappy software so that spammers will disrupt communication among the Bilderbergers, The Freemasons, The Trilateral Commission, and the Council on Foreign Relations and then Microsoft sets up open source programmers as the bad guys creating the spam so that the Illuminati will hire the Knights Templar to kill off all the open source programmers.

    It's brilliant. Really.

  14. Google business plan? by Bill+Dog · · Score: 3, Interesting

    I'm beginning to think they must be paying Google to never tag their crap as spam.

    1) Offer free email with gobs of space to instantly become a major player in that area.
    2) Punch blatantly obvious holes in the spam filters for your biggest-budget customers.
    3) When people complain, simply remind them that it's still in beta.
    4) Profit!

    --
    Attention zealots and haters: 00100 00100