CarderPlanet
Professional
Domain Gang experts found out that scammers use the imperfection of the GoDaddy registrar's policy to acquire domain names at auctions for a song, in fact, by collusion and deception.
An investigation by network specialists has shown that the auctions of many long and short domain names, the registration of which was not renewed by the previous owners, on the GoDaddy site are actively exploited by fraudsters.
According to the hosting rules that have been established for several years, if the auction winner does not pay for the selected domain within the allotted time, then his bid is canceled, and the domain name goes to the bidder who made the second highest bid. Scammers started exploiting this situation en masse.
For some time now, the standard fraudulent scheme looks something like this: a domain worth $1000+is put up for auction by GoDaddy. One of the scammers registered at the auction puts $10 for it. Another user (an accomplice of the attacker) makes a higher bid, for example, about $10 thousand. Other market players prefer not to continue bidding for the domain, as it is clearly not worth the higher bids.
After the auction results are announced, the winner refuses to pay a standing bid, and the domain goes to the second bidder for only $10.
Domain Gang clarified that such situations have been repeated for some time without attention from GoDaddy.
For example, the bid for a domain X8Bet.com it was $67,666, and it sold for $10 dollars. Per domain FloHome.com The winning bidder offered $30,278, but it went to another bidder for $25 dollars. Domain Name MoonDog.com Instead of $12.5 thousand, I bought it for $10/
Representatives of the NamePros forum explained that the first attempts of such scams date back to 2019. According to them, recently such schemes have been used particularly actively.
According to relevant experts, GoDaddy, which is the world's largest domain registrar, still does not take any measures to correct this situation. In fact, the company loses large bids at auctions, since any of the domains listed above could have been purchased by a bona fide client for $1000+, and not for $10 or $25.
Other companies implement different ways to protect themselves from scammers, such as requiring auction participants to provide bank card details when registering and fixing a fine when refusing to bid. But GoDaddy does not draw conclusions because of its domain sales for a song.
An investigation by network specialists has shown that the auctions of many long and short domain names, the registration of which was not renewed by the previous owners, on the GoDaddy site are actively exploited by fraudsters.
According to the hosting rules that have been established for several years, if the auction winner does not pay for the selected domain within the allotted time, then his bid is canceled, and the domain name goes to the bidder who made the second highest bid. Scammers started exploiting this situation en masse.
For some time now, the standard fraudulent scheme looks something like this: a domain worth $1000+is put up for auction by GoDaddy. One of the scammers registered at the auction puts $10 for it. Another user (an accomplice of the attacker) makes a higher bid, for example, about $10 thousand. Other market players prefer not to continue bidding for the domain, as it is clearly not worth the higher bids.
After the auction results are announced, the winner refuses to pay a standing bid, and the domain goes to the second bidder for only $10.
Domain Gang clarified that such situations have been repeated for some time without attention from GoDaddy.
For example, the bid for a domain X8Bet.com it was $67,666, and it sold for $10 dollars. Per domain FloHome.com The winning bidder offered $30,278, but it went to another bidder for $25 dollars. Domain Name MoonDog.com Instead of $12.5 thousand, I bought it for $10/
Representatives of the NamePros forum explained that the first attempts of such scams date back to 2019. According to them, recently such schemes have been used particularly actively.
According to relevant experts, GoDaddy, which is the world's largest domain registrar, still does not take any measures to correct this situation. In fact, the company loses large bids at auctions, since any of the domains listed above could have been purchased by a bona fide client for $1000+, and not for $10 or $25.
Other companies implement different ways to protect themselves from scammers, such as requiring auction participants to provide bank card details when registering and fixing a fine when refusing to bid. But GoDaddy does not draw conclusions because of its domain sales for a song.
