Warning: Plz be very careful when buying domains reg. with Godaddy

[Julian]

Recently, there are more and more buyers be scammed after bought domain(s) from members on different forums / domain marketplace. And almost in all cases, the bought domain(s) is reg. with Godaddy.

Normally, Buyer paid money, received domains pushed to his godaddy account, then the domain(s) be hold by godaddy in one a two days because of somebody raised Domain Ownership Dispute, and finally domain(s) be removed from buyer's godaddy account.

Buyer lost both money and domain(s) in this case, and some times involved in more trouble casued by scammers.

This kind of scam happens in two ways.

1) The buyer bought the domain from a domain thief
It is true that sometimes domain owners account be hacked for any reasons. Then the thief login right owner's account and push the domain to buyer... then right owner take action to raise dispute to Godaddy.
This is the situation we have heard times. But why there have so many Godaddy accounts be hacked so easy? Another interesting point is that if you ask domainers you know well in life / domain forums, acutally it is hard to find somebody's Godaddy account be hacked from the domainers you know. In another word, Godaddy account is NOT unsafety as reported.

But why there have so many reports from buyers to complain they lost their money and domain(s) after purchased domain(s) from Godaddy?

The answer is: in many cases, buyer was SCAMMed by another reason, which is NOT awared by most domainers

2) The buyer be scammed by a scammer group who use the hole of Godaddy's domain ownership dispute rule
How?

The Account owner (Let's call him as member A )give his godaddy ID and password to another member works for the group (Member B), then menber B sell the domains, take payments and login the account to push domains. Then member A raise Godaddy dispute.

In most cases, Godaddy helps the scammers take back domains because of they have prepared enough data in advance to prove the account was login without authorized. Only few cases be rejected by godaddy, or member A asks godaddy to stop investigations when they face Paypal dispute and may have trouble for Paypal account.

And the last step is Member C, who normally has "good reputation" and lots of "friends" in main domain forums to make noise later when all paypal funds are safety cleared, to force the buyer return the domain. (They have take money already so no lost at all for the few domains they finally connot take back). A typical way is member C starts a thread to call the buyer as domain thief with all dirty words but without any communication with the buyer in advance.

No matter the buyer is being scammed by which way, the result is buyer lost money and domain(s) in most cased.

To avoid this, we should be very carefully if going to buy a domain reg. with godaddy.

Maybe one way to avoid be scammed is asking for Auth code to transfer the domain out, and don't send payment before transfer completed.

If the seller doesn't agree transfer out but insists on pushing to your godaddy account, plz think it over and over before sending your money.


Take care! And hope all honest buyers can avoid being scammed by those dirty thief and scammer in domaining