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Evict the Spammers from Your Inbox
by: Paul Judge, CTO, CipherTrust, Inc.
Block Spam and Other Email Threats From Entering Your Gateway
Spam, commonly defined as unsolicited commercial email, is a powerful advertising channel for many products and services. As a result, spamming has become a profitable business, driven by the low cost of sending email compared to other direct marketing techniques. The high return on investment for spammers has resulted in an overwhelming volume of unwanted messages in personal and business email boxes. Consider this: Conducting a direct mail campaign costs an average of $1.39 per person, meaning that a response rate of 1 in 14 is necessary just to break even on a product with a $20 gross profit. Selling the same item via unsolicited spam email costs only $0.0004 per person, meaning that a response rate of 1 in 50,000 gets the seller back to break-even; anything above that is gravy. With profit margins like these, it’s easy to see why spammers will try anything to get past anti spam technology to deliver their messages to your inbox.

Types of Spam Threats
The recent onset of fraudulent spam variants such as phishing and spoofing pose an even greater risk than the spam volume clogging email servers. Spammers use techniques such as phishing and spoofing to fool users into opening messages that, at first glance, appear innocuous.

Phishing
Phishing is a specific type of spam message that solicits personal information from the recipient. Phishers use social engineering techniques to fool end users into believing that the message originated from a trusted sender, making these attacks especially dangerous because they often con victims into divulging social security numbers, bank account information or credit card numbers. In one six-month period from November 2003 to May 2004, phishing attacks increased in frequency by 4000%, and the trend continues upward.

An example of phishing is an email that appears to come from a bank requesting that users log into their account to update or correct personal information. When the users follow a link embedded in the email, they are redirected to a site that looks and behaves like the expected bank website. However, unbeknownst to the soon-to-be identity theft victims, the site is actually controlled by the scam artists who sent the email; any and all information entered by the victim can now be used in a variety of ways, none of them good.

Spoofing
Spoofing is a deceptive form of spam that hides the domain of the spammer or the spam’s origination point. Spammers often hijack the domains of well-known businesses or government entities to make spam filters think the communication is coming from a legitimate source.

Today’s spammers are more crafty than ever before and have begun blending elements of both phishing and spoofing into their messages, further spinning their web of deception. The toxic combination of spoofing and phishing presents a major threat that can trick most anyone into providing personal information to a stranger.

Toothless Legislation
On January 1, 2004, President Bush signed into law the “Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003,” or “CAN-SPAM” Act. While well intentioned, CAN-SPAM has done little or nothing to curb the flow of unwanted email. In fact, an estimated 97% of all spam email sent in 2004 violated the Act, and the United States still dwarfs other nations in terms of the origin of spam, with CipherTrust research revealing that an astonishing 56.77% of all spam comes from U.S.-based IP addresses. While CAN-SPAM was designed to decrease the overall volume of spam, the exact opposite has happened: in 2004, spam accounted for approximately 77% of all email traffic, and phishing attacks continue to increase exponentially, with studies showing an increase of 4000% from November 2003 to May 2004.

Anti Spam Software for the Desktop
The dramatic increase in spam volume has prompted a corresponding surge in stand-alone anti spam software solutions for the desktop, all with varying levels of effectiveness. Some anti spam software uses text filtering to screen incoming messages for known characteristics of spam, while other solutions rely solely on reputation systems that monitor and categorize email senders by IP address according to their sending behavior. Still other anti spam software uses “challenge/response filters” to block unapproved mail until the sender responds (manually) to a challenge email sent to their email account to verify his or her identity.

With so many different methods of filtering spam, no single software-based desktop anti spam solution is capable of effectively stopping spam before it reaches the inbox. The only way to successfully fight spam is to create an anti spam “cocktail” including reputation services, text filters, constant updates and a host of other best-of-breed spam blocking methods. Just as importantly, an effective anti spam solution should reside at the email gateway, not at the desktop. Without protection at the gateway, mail servers waste massive amounts of bandwidth and storage space processing every message, wanted or not, and end users face the unenviable task of deciding what to do with the countless spam messages that successfully reach them.

Take a Consolidated Approach to Anti Spam
Although it takes a person only a moment to process a message and identify it as spam, it is difficult to automate that human process because no single message characteristic consistently identifies spam. In fact, there are hundreds of different message characteristics that may indicate an email is spam, and an effective anti spam solution must be capable of employing multiple spam detection techniques.

In addition to effectively identifying spam, businesses must be assured that legitimate mail is not blocked in error. Even one false positive, or incorrectly blocked email, can have a significant impact on businesses today. Accurate spam blocking requires a combination of tools to examine various message criteria combined with real-time research and intelligence data.

By aggregating multiple spam detection technologies like text filtering, reputation services, traffic analysis and other best-of-breed techniques, and placing the solution at the email gateway in a hardened appliance, enterprises can retake control of the inbox.



About the author:

Dr. Paul Judge is a noted scholar and entrepreneur. He is Chief Technology Officer at CipherTrust, the industry's largest provider of enterprise email security. The company’s flagship product, IronMail provides a best of breed enterprise anti spam solution designed to stop spam, phishing attacks and other email-based threats. Learn more by visiting www.ciphertrust.com/products/spam_and_fraud_protection today.

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Tips to Build Your Email Address Database

WHY BUILD YOUR EMAIL ADDRESS DATABASE?

Gaining your customers' email addresses will:

  • Provide an additional channel for reaching your customers
  • Increase the ROI of your marketing investments
  • Significantly reduce your customer acquisition and marketing costs
  • Allow you to easily measure the impact of your marketing campaigns
  • Increase your customer participation and retention rates

With ongoing postal and telemarketing pressures impacting marketing budgets for many organizations this year, email marketing could become the "silver lining " for many marketers.   But how do you create a successful email marketing campaign if you do not have a substantial email database?  That question may be one of the largest Internet related challenges facing companies this year.

Research shows that the majority of organizations have email addresses for less than 10% of their postal files.  So how do you level the playing field and start to add quality permission - based email addresses to your database?

Here are some tips that you can use to cost effectively build your email address database and increase your customer participation and retention rates: 


START TO ASK FOR IT!  

Every communication or touch point with a customer should start or end with a request for an email address.   By utilizing the four points below, you should be able to add email addresses for 5% to 10% of your postal file over the course of one year.

1.  Direct Mail Collection

Think about how much time and money you spent for copy and design on your last new direct mail piece.  Most companies have started to ask their customers for their email address information within these mailings.  This is a great step forward. However, companies need to look at one major improvement if they want to increase their email address collection rates. 

To date, most requests for email address information have been pushed, shoved or jammed into whatever white space remains.  It should be no surprise that the success rate has been less than stellar.

To improve on these efforts, you need to provide your members with a reason to release their email addresses to you.  E-newsletters, purchase confirmations, petitions, and special discounts and offers are but a few of the benefits that will encourage your members to come on board.

2.  Web Page Collection

Many companies have an email address collection function in place via the web.  To improve your sign-up rates, add text below the email request box that informs your visitors of the special email benefits that they will receive (i.e. e-newsletters, purchase confirmations, delivery updates, etc.) upon registering.  You can also utilize a pop-up link to inform users of these special benefits.

Finally, your email address request function should be available on your home page. Don't make your users go and look for it.  Every click away from your home page reduces the chances of your users taking an action and providing you with their email address information.

3.  Existing Email Database Collection

Don't forget to ask the members of your existing customer base for email addresses of their friends, family and associates.  Viral marketing is a powerful tool to use and is extremely cost effective!  You could ask them either to provide you with additional addresses or simply to pass on your newsletter, email specific offers, or other information to others they feel have similar interests.

4.  Telemarketing Collection

Don't assume that your telemarketing agents are asking for email addresses from potential customers.  Ensure that your agents have an updated script, which outlines the previously described benefits to potential customers of providing their email addresses.

The suggestions above are a great start!  Yet they really should be viewed as a secondary plan for building your email database.  To exponentially and expeditiously grow your email database, please read on!


EMAIL APPENDING  

Utilizing an email appending service enables you to add email addresses for up to 25% of your postal file, all within 3-4 weeks.

Email Appending - is the process of adding an individual's email address to that individual's postal record in side your existing database.  This is accomplished by matching the postal database against a third party, permission based database of postal and email address information.

Best Practices - Email Appending is not a prospecting tool. The DMA (Direct Marketing Association) and its interactive arm AIM (Association of Interactive Marketing) have guidelines in place that dictate that email appending only be used to append email addresses to your existing opt-in postal record house file.

The Process - Your opt-in postal file is securely transferred to an email appending provider, who will do an initial gross email address match of your file against its opt-in database of postal and email address records.  Your appending provider will then send these matches a permission-based message prepared by you.  All bounces and opt-out requests will be removed from the list.  At that point a valid permission-based email address file of your customers will be delivered back to you. 

Cost - Less than the price of a postal stamp!


IN SUMMARY

The first step of any successful email marketing effort is to build a permission-based email address list of your customers.  The simplest, quickest and most cost-effective way to do this is through email appending, which will enable you to add email addresses for up to 25% of your postal file.  Secondary efforts of email address collection via focused direct mail, web, viral and telemarketing practices are also important and will enable you to add email addresses for an additional 5% to 10% of your base on an annual basis.

Best of luck in building your email address database.  As many companies have already learned, the ROI and cost savings to be achieved will far exceed your expectations.

Bill Kaplan
CEO
FreshAddress, Inc.

FreshAddress, Inc., The Email Address ExpertsTM, provides a comprehensive suite of industry leading database and email deliverability services to help companies increase their e-commerce revenues.  For more information on how we can help "Build and Update" your email list, visit http://freshaddress.com/biz or email biz@freshaddress.com.



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