A number of different tactics can be used online to commit securities fraud. Online fraud can happen when large quantities of SPAM emails are sent out, claiming to have insider trade secrets or tips to investing. These claims are often false or the companies are not legitimate. These serve as ploys to obtain an investor's funds. Another execution of online fraud occurs when a fictitious website claims to have services that can guide investors in the right direction.
Many times, the website will even follow up with counterfeit (yet realistic looking): documents, sponsors, photos, and other misleading information that would lead the investor to think this is a real practice. Once shares are purchased by the investor, the people behind the scheme tend to disappear with the victim's money.
Emails can also be distributed that claim to be "investment newsletters". In actuality, the "investment newsletters" are just another type of securities fraud to lure an investor into making a bad purchase. Posting illegitimate advice online (i.e. investment community bulletins, securities investment postings, and investment chat rooms) are also done as a means to commit securities fraud.