Email marketing firm smacked by the SEC

Yes, the SEC. Really.
Apparently the email marketing firm mUrgent, which provides services to the restaurant and hospitality industry also had a side business. According to the complaint filed by the SEC last month, they had an entire boiler room set up to sell shares for their non-existent IPO.
I’d never heard of this firm before, so I did a little digging. First step, check out their website.

Screen Shot of the mUrgent Website
mUrgent website
Overall, it looks like a fairly standard email marketing website. Pretty splash page, appropriate links, it even shares the names of the management team. So what is this with the SEC filing a complaint against the company? I kept doing some digging, and discovered that the principals behind mUrgent have a rather storied past.
In 2000, they were cited for violating securities laws in the State of Wisconsin. This also points out they were cited in 1996 and 1999 in Kansas and Pennsylvania respectively.
An ex-employee outed them on Scamchecker.
And they have their own page on entrepreneurs.about.com discussing how they’re an example of what not to do.
They are not the only email marketers out there that have been involved in scams, only the latest ones. But still, if you’d asked me to look a their email services page I would not have picked out that they were any different from any of the other hundreds of email marketing companies out there.

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Turn it all the way up to 11

I made that joke the other night and most of the folks who heard it didn’t get the reference. It made me feel just a little bit old.
Anyhow, Mickey beat me to it and posted much of what I was going to say about Ken Magill’s response to a very small quote from Neil’s guest post on expiring email headers last week.
I, too, was at that meeting, and at many other meetings where marketers and the folks that run the ISP spam filters end up in the same room. I don’t think the marketers always understand what is happening inside the postmaster and filtering desks on a day to day basis at the ISPs. Legitimate marketing? It’s a small fraction of the mail they deal with. Ken claims that marketing pays the salaries of these employees and they’d be out of a job if marketing didn’t exist. Possibly, but only in the context that they are paid to keep their employers servers up and running so that the giant promises made by the marketing team of faster downloads and better online experiences actually happen.
If there wasn’t an internet and there weren’t servers to maintain, they’d have good jobs elsewhere. They’d be building trains or designing buildings or any of the thousands of other jobs that require smart technical people.
Ken has no idea what these folks running the filters and keeping your email alive deal with on a regular basis. They deal with the utter dregs and horrors of society. They are the people dealing with unrelenting spam and virus and phishing attacks bad enough to threaten to take down their networks and the networks of everyone else. They also end up dealing with law enforcement to deal with criminals. Some of what they do is deal with is unspeakable, abuse and mistreatment of children and animals. These are the folks who stand in front of the rest of us, and make the world better for all of us.
They should be thanked for doing their job, not chastised because they’re doing what the people who pay them expect them to be doing.
Yes, recipients want the mail they want. But, y’know, I bet they really don’t want all the bad stuff that the ISPs protect against. Ken took offense at a statement that he really shouldn’t have. ISPs do check their false positive rates on filtering, and those rates are generally less than 1% of all the email that they filter. Marketers should be glad they’re such a small part of the problem. They really don’t want to be a bigger part.

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Be on the lookout

I’m hearing more rumors of ESPs seeing customer accounts being compromised, similar to what happened with The Children’s Place.

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ESPs leaking email addresses

Two of my tagged email addresses started getting identical pharma spam over the weekend. It is annoying me because I am now getting spam in a mailbox that was previously spam free. The spam is overwhelming the real traffic and I am having to make some decisions about what to do with the email addresses and their associated accounts with the companies I gave them to.
One thing I did notice, though, is that both companies use iContact as their ESP. A cursory check of my other mailboxes shows that none of my other tagged addresses are mailed through iContact. I don’t think it’s very likely that these two individual, unrelated companies made deals with the same spammers to sell address lists at the same time. It’s much more likely that there was a compromise somewhere and address lists were stolen.
Edit: Checked my other account and, likewise, I’m getting the same spam to a 3rd address serviced by iContact. I’ve sent mail to all 3 companies involved and we’ll see how they react.
And, as I was thinking about this, iContact just laid off a bunch of staff about the same time they announced their partnership with Goodmail. Based on past history with companies in this situation, it seems possible this is a disgruntled former employee. I’ve also seen reports from other people noticing spam to addresses given to iContact customers.

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