AJPark

Domain names provide a system of easy to remember internet addresses which can be translated by the Domain Name System into numerical addresses (Internet protocol numbers) used by the network.

Business owners can be easy prey for fraudsters looking to extract money from them for unsolicited services, such as domain name renewals or domain name registrations. The issue is not unique to New Zealand. Domain name scams work internationally. You could receive a letter or even a phone call from a scammer operating in any country around the world.

For some time now, domain name holders have been targeted by fraudsters seemingly trying to help them get a domain name, in either Hong Kong or China, ahead of another party. It is not uncommon for some businesses to receive several scam letters in a week. And these letters come in many guises. They range from bogus invoice-like letters trying to fool the account payer into making a payment for a purported service, to letters that offer a new domain name similar to your existing domain name. Other letters may offer website hosting, redirecting or email services.

More recently, locals have been receiving phone calls from the United Kingdom or Spain asking for urgent instructions to register a number of domain names to prevent third parties from doing so.

Many businesses choose to register many different levels of their name to ensure that all versions lead to their main website so customers can easily find them.  It is this aspect of the domain name system that is exploited in some of the letters sent soliciting domain name registrations. The letters sent can look real, so if you are not on the alert you could find yourself either the victim of a scam or the owner of an unnecessary new domain name.

So how do you avoid being hoodwinked?

You can avoid getting caught out by a scam by:

• managing your domain names through a credible and reliable provider
• becoming familiar with the domain name registration and renewal process
• establishing good business practices.
   
  

What is a good business practice?

A good business practice does not need to be onerous. It can be as simple as:

• Reading the letter received carefully. Sometimes these letters are poorly written and do not make much sense – a huge clue that they are a scam!
• Keeping a record of your domain names – know what domain names you have registered, who your registrar is, and when each domain name falls due for renewal (you can outsource this function to someone else).
• Checking all details on any invoice or letter received.
• Checking the rates, terms and conditions on a renewal notice to see if they compare with those offered by your current provider.
• Checking the website address carefully. Scammers often set up fake websites with similar addresses.
• Assigning one person in the business to be responsible for making any payments in relation to domain names.
• Checking the service was ordered and delivered before paying an invoice.
• Checking the New Zealand Commerce Commission website(www.comcom.govt.nz).
• Checking Scamwatch (http://www.consumeraffairs.govt.nz/scamwatch/), an information service run by the Ministry of Consumer Affairs which gives details of current scams.
• Checking the Australian Competition and Consumer Commission’s Scamwatch website for current scams (http://www.scamwatch.gov.au/content/index.phtml/itemId/693900).  This is the campaign portal for the Australasian Consumer Fraud Taskforce (http://www.scamwatch.gov.au/content/index.phtml/itemId/694357/fromItemId/693926).

If you are not sure whether the letter you have received is legitimate, check it out with your service provider.  But make sure that you check before you pay the invoice or reply to the sender!  Once paid, the fraudster will be off.  And once you reply, it is very difficult to stop the flood of further letters you will receive.

Don’t fall foul to a scam – be alert to the fraudsters.

An edited version of this article was published in Her Business, April 2009.

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  Corinne Blumsky

  Partner