Domain name cybersquatting is basically a cyber threat where the attacker targets a website with a domain that holds a good reputation in the market. They create an imposter domain of well-known brands and use it to deceive their users, potentially siphoning off traffic or damaging the brand’s reputation.

In this article, we will explain domain name squatting in detail. Businesses planning to register domain names should keep reading to improve their awareness.

What Is Domain Name Squatting

Domain name squatting is a type of cyber attack in which the attacker targets a well-established domain. Basically, the attacker registers a domain similar to or the same as the domain of an established brand to hold the real brand hostage. That is done in bad faith to get a ransom or to exploit the brand’s reputation for financial gain.

Domain cybersquatting can be considered a violation of intellectual property rights, but the intention of cybersquatting is absolute bad faith.

Examples of Domain Name Squatting

There are several real-life examples of domain name squatting.

1. Yahoo Inc versus Akash Arora, where the United States-based company Yahoo filed an injunction suit against Akash Arora, who registered a similar domain that was Yahoo.com (original: Yahoo. inc. was trademarked)
2. Walrmart44.com was registered to spread spyware and adware attacks.
3.  Facebookwinner2020.com was registered to attack users’ personal details in exchange for free prizes.
4. Xofnews.com was registered to attack the brand Fox News, which was used to sell weight-loss supplements.
5. Two men bought TikTok, anticipating the company’s growth and registering its URL. The company offered $145,000, but the offer was refused, and then a legal battle was fought, which they lost.

Legal Implications Domain Name Squatting

In countries like New Zealand, cybersquatting disputes are handled by the Domain Name Commission (DNC). The DNC was introduced to help the parties in dispute reach a legal, binding agreement based on the determination of who owns the domain name.

It also considers whether either party needs to make any payment to reach an agreement. Further, once the agreement is signed, the DNC can enforce it.

Different countries have different governing bodies depending upon the suffix. For example, for a globally used domain extension like .com, there is a Uniform Domain Name Dispute Resolution Policy in Place.

If the suffix .uk is used, the Nominet Dispute Resolution Service takes care of it. The .au domain is managed by the AU Domain Administration (auDA). For other domains across Asia, Asian Domain Name Dispute Resolution is the point of contact.

Cybersquatting Types

	Cybersquatting Attack	Details	Reasons
1	Identity Theft	In this, the attacker registers soon-to-be-expired domains to avoid renewals.	Works like Extortion
2	Name Jacking	In this, the attacker registers an authoritative and well-established domain to earn profit related to traffic	Earn Profit from their traffic
3	Reverse Cybersquatting	In this, the attacker wrongly accuses the real domain owner of squatting to force them to transfer their domain ownership to them.	Coercion
4	Typosquatting	Making use of different spellings of real websites and tricking their users into phishing.	Phishing Attack
5	Homograph Attack	Misusing visual similarities of domain letters and characters in the International Domain System. Domain squatters register addresses that mimic a domain using characters from a different language	Various Reasons
6	Homophone	Uses a similar-sounding domain name and redirects them to the wrong website.	Various Reasons
7	Top-Level Domain Squatting	Attack the same domain name with a different extension	Various Reasons
8	Combo Squatting	Adding a keyword to the actual website to falsely redirect them to their falsy made payment gateway	Financial profit

Best Ways To Prevent Domain Name Squatting

The best ways to prevent yourself from domain name squatting is-

1. When registering your domain name, try to target top-level domain names like .com, .org.net, etc.
2. If you come across a cybersquatter, file your complaint immediately with the Internet Corporation of Assigned Names And Numbers.
3. If you have NZ country-based website registered domain extension like .co.nz or .org.nz
4. Once you establish a business, immediately register your domain name.
5. Always prefer a reputable domain name registrar.
6. Trademark your domain name
7. Target different variations of domain extension.

Conclusion

When I use domain name and cybersquatting in the same sentence, I mean registering a domain name in Bath Faith. There are various ways of domain squatting; therefore, staying aware of each type will prepare you to protect your domain effectively.

Gain a deeper understanding of preventive measures to protect against cybersquatting and take steps based on your circumstances. Equip yourself with the knowledge to safeguard your brand and domain.