Beware of Domain Name Scams

Consumers and Domain Name Investors Alert

Tips to avoid Domain Name Scams, Rip-Offs and Cons

Always Verify Whom You're Buying a Domain Name From
Make sure you can write to the administrative contact email address listed in a domain's WHOIS information and get a response. Scam artists will attempt to represent domain names for sale they do not own. The first thing to check is the WHOIS database and see who the registered owner is, and send an e-mail to the administrative contact person.

Always Keep Your Own WHOIS Information Up to Date
An outdated email address can lead to someone taking control of your domain without your knowledge. An invalid address or phone information can be reported to ICANN and/or your registrar who may arbitrarily cancel your domain registration. If you are concerned about privacy issues, consider using a post office box and voice mail service for your admin phone contact information.

Never Purchase a Domain Appraisal at the Suggestion of a Potential Buyer
Domain Names are like real estate. If a buyer desires to purchase your property, they will acquire their own appraisal. When a buyer says they’re interested in purchasing a domain name that you own but they require you to order a paid appraisal from a company they recommend, kindly bid them adieu! It’s one of the hottest scams in the domain name industry. You purchase the appraisal, (from a company they usually own or are an affiliate of) and they immediately decline to proceed forward with the transaction.

Never Ignore Domain Transfer Notifications
Be advised, new ICANN rules state that if a domain transfer is not declined within five days of being started, IT MAY PROCEED. An unauthorized and unscrupulous third party can initiate a transfer for your domain name and gain control of your property if you ignore such notices.

Never Ignore Domain Name Expiration Notices From Your Registrar
In today’s highly competitive domain name market, if you ignore such a notice, you could lose your domain name before you know it. Currently, there are harvesting software applications that monitor expiring domain names. As soon as the domain legally expires, its grabbed and transferred to the new owner.

Use a Trusted Escrow Service Provider
At Domain Name Pros, we use three of the top escrow companies in the domain name business. Moniker.com, Sedo.com and Escrow.com. They act as third party intermediaries in domain name transactions to handle payments and release funds ONLY upon a successful domain transfer.

Beware of the Money Transfer Scams

When sellers insist on payment methods such as: bank drafts, money orders, cashier checks and checks drawn on foreign institutions, and Western Union and wire transfers, watch out! Especially if they demand transfer of ownership prior to the seemingly negotiable instrument clearing your bank. This type of aggressive transfer of ownership almost always involves domain name fraud and you may have little recourse if they do not deliver the domain as promised.

Avoid Foreign Bank Domain Name Transactions

When dealing with foreign banks, you literally have zero recourse in the event that you are the victim of domain name fraud. Let’s face it; many scam artist use foreign banks to pull of some pretty far flung and financially damaging schemes. To avoid this nightmare, simple use a reputable escrow service. Any person who has fallen prey to a foreign domain name scam will tell you that you essentially have no recourse. 

Beware of Scam Artists Using PayPal
This little known scam works like this. The deceptively cunning buyer agrees to purchase your domain name and handle the transaction through PayPal. On the surface everything seems fine. You receive the funds and then transfer the domain name to the new owner. The next thing you know, you’re being contacted by PayPal with a transaction dispute; the buyer is now claiming that you didn’t deliver the product, (i.e., domain name.). We have seen a number of cases in which the sellers proved transfer of ownership, but these fraudulent buyers trumped their irrefutable proof with bogus evidence and won the dispute. In order to avoid this nightmare, take these two crucial steps: (1) use an escrow service, or (2) have a potential buyer sign a specially crafted legally binding purchase agreement for domain name transactions handled through PayPal.  

Use Domain Lock

If your registrar doesn’t offer domain lock, you may want to consider moving your domain to a registrar that does. Domain Lock prevents anybody from transferring your domain without your authorization

The Domain Name Pros are dedicated to integrity, professionalism and ethical within the domain name community. Read the Domain Name Pros Code of Ethics.

Important things you need to know:

Steps To Purchase a Brandable Domain Name

How To Pay For Your Domain Name

How We Complete Your Domain Name Transfer With Godaddy.com