Unsolicited e-mail messages, also known as "spam," are one of the tools used by scam artists to spread false information about a company to manipulate share prices or to find investors for bogus investment schemes. The OSC has received complaints about unsolicited spam e-mail messages promoting US Bulletin Board stocks, and various "Hot" stock tips.

A person sending a spam message may have bought stock previously and wants to make a profit by sending the price higher. Spam messages often make it appear that the sender has information that a pending announcement will boost the price of a stock, or that the sender is an independent analyst who views the stock favourably and is setting a high target price. The spammer may also short the stock (borrow stock to sell at a high price, hoping it will drop, and buy it back at the lower price to make a profit) and attempt to lower the price by posting negative information or issuing a negative analysis.

Spammers try to capitalize on your willingness to act without having verified the validity information or analysis. When the price of a security rises on this type of speculation, market forces soon return the price back to realistic levels. When this happens, people who acted without properly researching the investment stand to lose some or all of their investment.

Be wary of opportunities that promise low or no risk, spectacular profits or guaranteed returns. No investment is risk free and sometimes the investment products touted do not even exist - they are scams.

If you receive an unsolicited message offering investment advice, ask yourself why you received the message and why the person who sent it is trying to remain anonymous by failing to include a legitimate name and contact information. Do your own research and be wary of acting on rumours.

Contact the Ontario Securities Commission toll free at 1-877-785-1555 for further information.