Fake domain name buyers

Started by Rakesh01, Oct 11, 2022, 12:48 AM

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Rakesh01Topic starter

Are there still many instances of people buying fake domains, or has this become less common since 2019?

It's hard to say for certain, but there have been some reports indicating that the prevalence of fake domain buyers may have decreased. However, it's important to remain vigilant and do your due diligence when selling a domain to ensure that you don't fall victim to a scam.

Last week, I received an offer on one of my domains for $2,000. I responded with a counteroffer of $34,000, and to my surprise, it was accepted the very next day. However, since then, there has been no further communication or action from the buyer.

Upon investigating the IP address associated with the offer, I discovered that it had been made through a proxy, which raises red flags about the legitimacy of the buyer. It's possible that this could be a case of attempted fraud.

Overall, it's important to exercise caution and thoroughly research potential buyers before agreeing to any transactions in the world of domain sales.
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Bubunt

It's a common occurrence in the world of domain sales for deals that have been agreed upon to later fall through. In fact, it's possible that up to 50% of such transactions end up being canceled for various reasons.

While it's true that a buyer using a proxy can be a red flag for potential fraud, it's important to consider other possibilities as well. For example, the buyer may have simply had a change of heart and decided not to follow through with the purchase.

Ultimately, there are many factors at play when it comes to domain sales, and it's important to remain vigilant while also being open to the possibility that things can change unexpectedly.
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jimmy0082

Yes, it's essential to be aware of potential fraudulent activities when engaging in domain transactions. The scenario you described does seem unusual, especially given the quick acceptance of a significantly higher counteroffer and then no follow up. This should indeed raise suspicion.

To protect yourself in such situations, consider utilizing established domain name marketplaces for your transactions. These platforms have built-in measures to reduce the risk of fraud. They ensure that the buyer has funds before the domain is transferred and that the seller indeed owns the domain to prevent fake listings. Examples include platforms like Sedo, GoDaddy Auctions, or Flippa.

As for cyber security, IP addresses coming from proxies are not definitively malicious, but they can be a red flag since some people use them to hide their true locations or identities.

It's also important to check the email address of the buyer, conduct a quick internet search for any reported scams related to the information given by the potential buyer, use WHOIS lookup services to verify buyer's contact information, and consider asking for a deposit from the buyer to confirm their commitment.


If you're looking for more ways to protect yourself from scam, here are a few additional tips:

Use a Secure Exchange Platform: In addition to using a reputable domain marketplace, transactions can be secured using an escrow service. An escrow service acts as a third-party to hold the buyer's payment until the terms of the sale are met. This can give both the buyer and selling peace of mind about the transaction.

Secure Payments: Always insist on secured forms of payment. Avoid wire transfers and check payments that could potentially be fraudulent. Using a secure payment method also provides you with a dispute mechanism should anything go wrong.

Trustworthy Communication: Avoid buyers who insist on communicating outside the platform where the domain is listed for sale. This form of external communication can leave you vulnerable to scams.

Stay Updated: Keep yourself fully informed on recent tactics and schemes used by scammers. Online forums, blogs, and news stuff can provide valuable insights on this.

Legal Counseling: If you are dealing with high-value domains, it is worth it to get legal advice to ensure the safety of you assets.

Verification of Buyer: Besides checking the IP and email address of the potential buyer, consider cross-checking their contact information with their known online presence, if any is available. LinkedIn, Facebook, other social media profiles, or a verified digital footprint can provide more validation.

Knowledge About Your Buyer: It's beneficial to understand the purpose of the buyer's purchase. Whether they are a domain investor, an end-user, or a business entity looking to safeguard their IP rights can give insights. Scammers could be less likely to provide a credible story.

Background Check: Websites like Scamadviser can provide some insights into a potential buyer. You can input their email address, website, or other contact information, and it will provide some information about the level of risk associated with the provided information.

Document Everything: Be sure to keep records of all conversations and data exchanged during the transaction process. This evidence can be beneficial if you have to report fraudulent activity.

Beware of Overpayment Scams: These are designed to fool the seller into sending the alleged 'overpayment' back to the fraudster before realizing that the original payment was fraudulent.

Remember, as the internet continues to grow and evolve, so does cybercrime. A decrease in domain-related scams does not necessarily mean online threats are diminishing. It may simply represent a shift in criminal activities to other more rewarding methods of fraud. Thus, it is crucial to be vigilant when conducting online businesses, especially in transactions involving significant amounts of money.
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