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Old 23rd May 2010, 03:15 PM
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Re: $490 - NOT IDN

Originally Posted by seesawgame View Post
I have 3 / 8 was 300 dollars scam by

There are all at and use paypal
and Whois always update at post thread at domain forums
you can check out

I think the domain owner not found his domain was stolen
Do you think 1999 registed domain so cheap for sale?
When he push domain to you, and sucks will get it back!
My is that happen, I think has security problems or data turned staff ghost with hacker

I don't know what alway happen at, and fraudsters always take domainers money away and can't help us?

Sorry, I english poor.
Not sure this is a scam but there have been similar scams happening these days:

1. Seller sells the name at below market value

2. whois shows info of Seller

3. Seller can push the name to Buyer first before getting payment, so Buyer will trust them because it's 'risk free' (Buyer already got the names before making payment)

4. Seller requests Buyer pays by paypal cash

5. after Buyer make payment, registrar (usually godaddy) comes to Buyer informing Buyer that the names pushed to Buyer's account are reversed as the 'Original Owner' make complaints and registrar (usually godaddy) after 'investigation', finds the name was stolen and Original Owner's account was 'hacked' and 'names stolen'; no use to show evidence to godaddy which never listens

6. Buyer will make complaint to paypal. Paypal will 'open a case' and asks for a lot of things, for formalities, but finally Paypal will tell Buyer that paypal does not protect sales not conducted thru eBay and/or sales not involving tangible goods, so Buyer's complaint with paypal will be closed and Buyer loses money. Paypal will bullshit that they will watch closely the Seller's account (which they won't).

7. If Buyer pays by paypal credit card, Buyer may also approach his credit card co to apply for 'chargeback'. The credit card co will also 'open a case', but it's likely that finally the credit card co will return to the Buyer that there is a 'genuine transaction' as paypal is showing the invoices to the credit card co which is obligated to honour the payment. Actually the credit card co will ignore that fact that paypal is just a payment platform and ignore the fact that the counterparty of the transaction is the Seller not paypal. And during the 'investigation' period, paypal will freeze Buyer's account.

8. Lots of similar scams have these similiarites : a) godaddy b) paypal payment c) alledged 'stolen' names (pay attention to the word "alledged", which may be an arrangement only)

9. In fact you can make easy money with the following logistics:

a) open a godaddy account and transferred names there

b) then you deliberately transfer names to another party also with a godaddy account, S

c) S then sells name at forums, may even sell at below market value and push names to buyer's godaddy account before receiving payments

d) S insists buyer makes payment by paypal (if possible, by paypal cash, to avoid complication of buyer applying chargeback thru credit card co)

e) after Buyer pays, you (the original name owner) approaches Godaddy, tell them your email / domain names account is hacked and names are stolen, their Undo Dept (Legal Dept) will 'undo' the transfer, so you (the original name owner) will resecure the names, and S (in fact may be your 'avatar' only) gets the money

f) Godaddy not just being unhelpful, but even insults the Buyer that he should not buy stolen goods (yet whois confirms the names were registered and owned by Seller). Godaddy also advises that domain names sales should be conducted thru escrow and/or Godaddy, yet if the Seller really has hacked and stolen the names, escrow and Godaddy cannot change the fact that they are stolen goods, and after the payment is made, the 'original owner' can still make similiar complaint even it is transacted thru escrow and/or godaddy, so escrow and Godaddy's help in the transaction cannot eliminate the risk of such scams.

So best way is to avoid buying names in GD, there appears to be security and even inhouse integrity issues there. Their policies are scammers friendly which appears to be abnormal. Someones have well studied the policies of GD, paypal, credit card issuers, and are abusing them in scamming others.

We have learnt that many have been scammed and many (including us) have migrated all of their names out of GD, it's not safe to put names there, and it may also cause skepticism for buyers (so reduce your chance of selling) if your names are with GD.

Last edited by MDM; 23rd May 2010 at 03:48 PM..