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Scam Domain Names

Do you think buying something as simple as a domain
name means that industry is free from scams? If you do think again,
since everyday hundreds of people get milked out of their money thinking
they are going to get a perfect domain name. Granted, fraudulent
domain name companies haven’t received as much press as ‘work-at-home’
companies or other businesses of that nature, but they are still just as
deviant. The two main ways a domain name company goes about scamming
its customers involves either selling the domain name at a ridiculously
high price and/or not delivering the domain name as promised.

The typical price of a domain name ranges from being 0 dollars to
around $35. However, if a domain name company is shady they could
charge a price that is much higher. This fee could range from $300 to
over $2,000. And, unlike legitimate web hosting companies that might
charge such a fee, domain name companies of a shady vein do not offer
other services such as web hosting or marketing assistance. Their sole
sale is of the domain name. 

The second way fraudulent domain name companies
scam people is by not providing a domain name at all. This happens a
lot with so-called ‘free’ domain names, but can also happen with paid
ones of any price. The normal turnaround time for domain name
forwarding ranges from 1 to 7 days. If this timeframe has passed and a
customer has not received a domain name, they probably won’t receive
one.
What does a person do if they discovered they’ve
been scammed? Well, if they fall for the first scam where they pay
hundreds for a domain name, they may not be able to do much, if the
company does indeed deliver the domain name. At most they could try to
get a refund, but this is a long shot since companies that shady
probably won’t allow for such things. 
On the other hand, if a domain name hasn’t been
delivered at all, a person can first file a complaint with the Internet
Crime Center, (also known as IC3). This organization has a partnership
with the FBI and the National White Collar Crime Center. So, if they
think a domain name company has acted in a fraudulent manner, they could
use these entities to help conduct criminal investigations against
them.
Next, the jilted party needs to consider filing a
complaint with the Better Business Bureau. Although this organization
doesn’t have as many legal/governmental ties as the Internet Crime
Center, it still has a lot of power. This is because many people turn
to the BBB before they decide to do business with a company. By filing a
complaint with them, a person that has been scammed could protect
others from undergoing these same difficulties. 

Finally, there’s the option of reporting the
fraud to the credit card company or payment processor. If a credit
card company determines fraud has occurred, webmasters will at least get
their money back. If payment processors such as Paypal think fraud has
occurred, they will proceed with freezing the account of the domain
name company. When this happens they cannot do further business until
they clear up the discrepancy.

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Posted by on December 29, 2017.

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