Wednesday, March 10, 2010

Safe Domain Registration: Avoiding Potential Domain Name Scams

Domain registration is a relatively simple process and one that isn’t expensive at all. Most of the time you can get your domain name for between $10 and $20 annually. Of course, just like everything else on the internet, domain name registration has been opened up to scam artists.

Since domain name registrars are public information it’s not hard for someone to locate your email address and the domain you have registered. This also means that it is not difficult for them to contact you. Most domain scams take place via email, although there have been a few attempts to attract victims via websites. Email is much more anonymous and direct, and therefore it is more likely that you’ll be a victim of a domain registry scam in this fashion.

The basic idea of the most common scam is to convince you that your registration is ready to expire. Naturally, if that were true, you would want to take immediate action so that you could hold onto your success thus far and continue building on it. The scam artists have taken care to create an official looking invoice to encourage you to fix the pending problem right away. Of course, they make it seem as though this is all for your convenience.

The first thing you’ll notice is that the cost for renewal is well above the cost for the initial registration. Instead of $10 per year you will be opening an invoice that is set at ridiculously high prices for the industry. Most victims state the price was around $75 for the renewal. Obviously, those who have paid have ended up having to legitimately renew their registration for their domain name.

Of course, that’s not the only scam you’ll find online. Some are so finely tuned that they technically aren’t illegal. Domain name search engine registration is not the same thing as domain name registration. Official looking emails, professional looking invoices, and selective use of words like “final notice” and “urgent notice” give the illusion that you must take immediate action.

Some of these companies imply or directly state that a merger has taken place and they now control the company. From there, you are supposed to register and handle your renewals through them. If you register through these fraudulent companies the only thing you’re registering is the domain name search engine registration. DomainUSA is the most commonly known company running this barely legal scam. There are others, naturally.

We can’t ignore the infamous emails that are generally coming out of China that are willing to “help you out.” In this scam you are being made aware of “foreign companies” that are intentionally trying to sabotage your online business by buying up websites that carry your domain name and/or your trademark name. In all of their “concern” for the small business owner they want to give you the opportunity to protect your hard work by purchasing these competitive domains and trademarks names so that your brand will remain intact and under your control.

So how do you avoid these scams as well as others like them? There are some rather basic ground rules that can help keep your money actually going into your business and out of the hands of internet criminals.

Start by being aware of the going rate. If you are registering a domain for the first time, be sure to check out many prices so that you will notice when the charges are excessive. Usually you will find the preferred rates through the well known domain registries. Sites such as GoDaddy.com are very well known and only charge about $9 annually. Any time you need to renew or you want to make adjustments go to the site. Never pay for something through an email link. Always hand type the web address into the browser. It’s even better if you have the domain registry site book marked from your initial visit with them.

Know when your domain actually expires. If you paid your annual fee in August you don’t have to pay again until August of the following year if you’re dealing with a reputable company. If someone is trying to tell you that your year is over three months after you registered your domain name you are staring at the largest and most glaring red flag of all.

Unsolicited emails and faxes should always be looked at with great skepticism. It is illegal to contact you in these methods without your consent. Thus, doing business with anyone that ignores the laws for their own financial benefit is usually a good sign of a company with shady standards.

Pre-registration of a domain name can not give you the guarantee of any kind of special treatment. Those who are in the legitimate business of domain name registry aren’t specifically interested in guiding you toward one name over another. Their service is not to help you get ahead in your marketing efforts with a “special and personalized” domain name. Actual domain registry services are a first come, first served business.

Stay informed. Any time you receive correspondence that just doesn’t seem quite right, check it out. Any time a new company is asking you to pay an invoice you know nothing about, research it. Most of the time you can find lists of these scams all over the place. The consumer fraud website of choice is www.ftc.gov. Here, you’ll be able to confirm suspicions, learn about new scams, find answers, and report fraud if it is attempted. Staying informed is the best way to protect yourself against unscrupulous scam artists.

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