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Hall of Shame – The Bad Boys of Email Spam
by: Paul Judge, CTO, CipherTrust, Inc.
The majority of Unsolicited Commercial Email (UCE) or “spam” is sent by a relatively small group of dedicated professional spammers. The Register of Known Spam Operations (ROKSO) indicates that 80% of all spam comes from just 200 known spam operations. This data is in line with research completed by CipherTrust research scientists, which indicates that most spam originates from a relatively small group of tightly integrated spam networks. While we’re all very familiar with the spam messages we receive each day, it is interesting to take a look at who these spammers are – to put a “face” to the problem. Following are four of the most notorious and prolific spammers in the world.

Alan Ralsky
Mr. Ralsky is currently one of the most egregious spam senders in the world. His organization, based in Michigan since 1997, uses Chinese, European and US-based servers to host and send spam to millions of email boxes daily. But that’s not enough for Ralsky. Not only does he operate as a spammer, but he also provides hosting services to other spammers.

In 2002, Verizon sued Mr. Ralsky for causing their network to freeze twice. The lawsuit originally sought $37 million, but was settled out of court for an undisclosed amount. Ralsky is no longer allowed to send email over Verizon’s networks, but admits no wrongdoing in the case and has vowed to continue sending bulk email.

Mr. Ralsky was convicted in 1994 for falsifying documents to defraud two banks in Michigan and Ohio and was fined $74,000. In an unrelated case in 1992, Ralsky was sentenced to 50 days in jail and ordered to pay $120,000 in restitution for failing to deliver a contract involving unregistered securities.

While Mr. Ralsky sends millions of unsolicited email messages selling everything from diet pills to online gambling, he claims that his business is legitimate and that his emails are not spam. He also insists that he does not sell pornography. We’re sure he’s an absolutely charming fellow.

Scott Richter
Scott Richter’s Denver-based company, OptinRealBig, is responsible for sending out billions of spam emails. He is one of the most outspoken and notorious spammers in business today. Whereas most spammers attempt to keep a low profile, often denying any involvement in spam, Richter seems to enjoy the spotlight. In fact, Richter even attempted to start up a “Spam King” clothing line before Hormel (the company responsible for bringing delicious canned Spam to dining rooms around the world) put an end to his trademark-infringing idea.

Richter and his partners were named in a lawsuit filed by the New York Attorney General and Microsoft. That suit, filed in 2003, sought millions of dollars in punitive damages, but was settled out of court in mid-2004 with a paltry fine of $50,000. For quite some time, Richter regarded his legal entanglements as excellent advertising for his company which, he claimed, gains value each time he is sued.

Recently he has changed his story somewhat. Faced with prolonged lawsuits led by Microsoft as well as various state and corporate entities, Richter has now declared bankruptcy. As his father (who is also his attorney) said, "It’s the legal fees that are battering the company. OptIn is profitable but for these lawsuits."

Andrew Westmoreland
An apparent accomplice of Scott Richter, Westmoreland’s Texas-based company, Internet Access Group Inc., sends millions of spam messages pushing everything from gas to online diploma mills to auto loans and mortgages. His business also operates under the names Brilliant Marketing, Aphrodite Marketing, OptiGate Networks and Players Exchange Club.

Robert Soloway
Robert Soloway’s Oregon-based company, Newport Internet Marketing Corporation, has sent millions of spam emails and has been the subject of numerous complaints and lawsuits by class action groups and Microsoft.

Soloway’s spam messages often contain get-rich-quick schemes selling (what else?) spam software and “fresh” email addresses. Yes, that’s right folks; you too can send spam to 15 million recipients for just $295. At least that’s what the ad says, but would you want to give your credit card number to someone like this?

Slam the Door on Spam
This is just a small sampling of the questionable characters who insist on clogging your inbox with junk email. While these may be some of the most egregious offenders, there are plenty more waiting in the wings who would like nothing more than to be considered equally offensive. As these new spammers rise through the ranks, we’ll keep you posted on who they are, and what kind of shady business they’re up to.


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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