Scammers and rip-off artists are everywhere on the Internet. The domain name business is no exception. Here are some tips to help you avoid being scammed.
1. When buying a domain name, always verify who you're buying a name from. Make sure you can write to the administrative contact email address listed in a domain's WHOIS information and get a response. There are scam artists who attempt to represent names for sale that they do not own.
2. If a domain seller makes claims that a domain name has traffic, ask for screenshots of the domain's stats and primary sources of traffic. Always try to understand where the traffic is coming from and why.
3. Do a "mini-background check" on the domain's history by doing a Google search on both the domain itself and the email address listed in the WHOIS.
4. Search the popular domain name forums (namepros.com, domainstate.com, and dnforum.com) to see if the domain you are buying has been reported as stolen.
5. Never purchase a domain appraisal as the request of an unknown "buyer". There are widely perpetrated scams where appraisal companies have posed as highly-interested domain buyers ready to purchase your name for great prices, but first require you order a paid appraisal from a company they recommend. Don't fall for it.
6. Pay attention to domain transfer notifications. ICANN rules state that if a domain transfer is not declined within five days of being started it may proceed. An unauthorized third party can initiate a transfer for your domain and gain control of it if you ignore such notices.
7. Use DOMAIN LOCK if your registrar offers it. If they don't, consider moving your domain to a registrar that does.
8. When in doubt, use a trusted escrow service provider. Companies like Sedo.com and Escrow.com can act as a third party in domain transactions to handle payments and release only upon a successful domain transfer. Beware of sellers who insist on payment methods such as Western Union, as you may have little recourse if they do not deliver the domain as promised.
9. Be smart and use common sense when buying and selling domains. The old adage applies; when something sounds too good to be true, it probably is. Domain entusiasts are invited to join namepros.com where as a member you can stay informed of the latest scams targeting domain buyers and sellers in the Warnings & Alert forum.
10. Most importantly, keep your own WHOIS information up to date. An outdated email address can lead to a thief taking control of your domain. Invalid address or phone information can be reported to ICANN and/or your registrar who may cancel your domain registration. If you are concerned about privacy, consider getting a post office box and a voice mail service for your admin phone contact number.
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