Chumping and dumping Google Trends

 

Tired of Making Chump Change Online?

Just judging from recent “Spicy” ratings from Google Trends system, it wouldn’t be out of the realm of possibility that a few people might be trying the “Chump and Dump” technique of building buzz.  This method could be inspired by earlier Google Trends gaming pranks.  It might not be unreasonable to speculate that those who “game” Google Trends to build buzz might apply these techniques to more nefarious purposes–pump and dump stock schemes or some such buzz-dependent financial crimes.  Buzz building manipulation might pose a big problem for Google because it allows manipulation of their search results indirectly through innocent third parties’ actions.  That’s what makes it tricky.

None of this novel.  An earlier variation of “buzz”-based stock manipulation schemes involved spammed “investment advice” touting penny stocks on “the verge of breakout”.  Remember those annoying emails back in 1996?  Google Trend gaming would just be a more up to date, Web 2.0-specific incarnation of the same tired but injurious scam.

The bottomline is:  Don’t become a victim of “buzz” stock manipulation schemes.

Here’s how (we think) it works:

1) Scammers run many bots at differing IPs.  All enter the same search term at differing times.
2) The search term (company or stock symbol) is searched so much that it appears on Google Trends’ “spicy list”

Here’s where it gets tricky:

3) Other sites like inquistr and other blogs that deliberately blog about trends based on Google trends start blogging about the “hot trend” topic.  They follow Google Trends carefully so they can ride the surge in interest in particular “hot topics”.  These guys are completely innocent third parties.

4) The stock manipulators/buzz scammers bought stock in the company or launched a new company and are looking to get funding

The payoff

5) The buzz generated by this technique either lifts the junk stock (penny stocks) because of Internet buzz or,  in the case of startup funding scams, get more leverage when trying to raise funding from investors.  As you know, “buzz” on the Internet often equates to real money when it comes to startup internet businesses.

Be on the lookout for such shady ‘buzz building’ tactics.  Do not become a victim.

WARNING:  “Pumping and Dumping” stocks is ILLEGAL in many jurisdictions.  This blog post is purely for informational and consumer protection purposes only.  In no way shape or form do we advocate nor condone such practices.  All items discussed in this post are matters of speculation and opinion only. Bottomline:  Do not become a victim of the (theoretical?) scheme as detailed above.  Make sure the “buzz” about a stock is based on what’s real–it’s earnings and/or actual potential.

Besides, the dramatic criminal dimension discussed, this (theoretical?) buzz building technique probably might work for more legit and legal purposes such as generating hype/buzz for upcoming movies or other similar product launches.  As always, whatever you do, make sure your actions conform to controlling regulations and sites’ Terms of Service rules.

Comments

  1. What an interesting and educational article. I use google trends religiously. I had no idea that it was used this way. I need to rethink my platform. I use it for hot topics and to get idea’s on what to blog about at times but never ever did I think it was a spammy way to get idea’s.

    Seriously thank you for this eye opener.

    Garret’s last blog post..This just in ufo sightings in….

  2. Amy@Penny Stocks says:

    I like Yahoo! Answers as well. With Google Trends, you can see the geographic location of the keywords people use to search. With Yahoo Answers!, you can ask question about your target market, or pose a question directly to your target market and get their opinions or buying patterns.

  3. Carl @ Probate Law Chicago says:

    Google trends are amazing! Have you seen the Google flu prediction? I wonder what else they can figure out with their data?

  4. Jessica D. Covington says:

    great post, i’ll be sure to comeback to this website again for some more informative articles. btw does any one know if this site that says i can

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