5 Ways to Recognize A Domain Broker is Scamming You
Buying and selling domain names has become a lucrative business with the most desirable domains costing hundreds of thousands, if not millions, of dollars. Unfortunately, this has given rise to a host of unscrupulous individuals posing as domain brokers.
Here are the best ways to tell that a domain broker is scamming you.
Be Wary of Cold Callers
For starters, beware of cold calls/messages from people who claim to be domain brokers. These could be in the form of a phone call, an email, or a letter. In most cases, scammers pressure you into taking immediate action by touting things such as once-in-a-lifetime opportunities.
When you come across outlandish claims or a broker in a hurry to have you close a deal as soon as possible, always practice caution.
Find Out Who Owns the Domain Name You Intend to Buy
A genuine domain broker will not hesitate from informing you who the owner of the domain you intend to buy belongs to. The owner can be:
- An individual who acquired the domain for personal reasons
- A company that intends to use the domain in the future
- A domain investor who’s hoping to sell the domain name for a profit
There are several online tools you can use to look up domain name owners, most of which are free. The most popular sites are Whois.net, LookWhoIs, and DomainTools.com. In addition to providing you with the name of the company or individual that owns the domain, DomainTools.com also shows how many more domain names the owner has.
Once you find out who owns the domain name, you can paste their website on The Google Safe Browsing Transparency Report. Provided by Google, this is a tool that gives you a report on whether a site is safe or not once you paste its URL on the field provided.
If the results show a person with hundreds or even thousands of domain names, the domain is most likely owned by an investor. If it is owned by a company, a simple Google search will help you know whether it’s a small startup, a big corporation, or a domain brokerage service.
Knowing who owns the domain not only helps you know if its genuine, but will also influence how you handle the negotiation process.
Check the Broker’s Email Address
Rarely will a domain broker use the email address of the domain they are selling. To verify whether an email is fake, hover the cursor over the information you intend to verify, particularly the sender’s email address. Scammers often spoof the name displayed so that it looks legitimate. Hovering the cursor over this name will display the real sender.
Inspect the sender’s email address to find out whether the spelling is correct. Scammers will normally try to replace, add, or switch out characters in a bid to look legitimate. For instance, an email address with the character “m” could be replaced with “rn.”
Also, check the email content and, specifically, the signature. Most scammers will provide you with an easy means of getting back to them.
Check the Broker’s Privacy Policy
A legitimate domain brokerage service should have a privacy policy that’s relevant to their organization. The privacy policy should describe why they collect personal information and how they use it. It should also outline the processes and procedures they use in collecting this information. Always verify the information provided in this segment.
Are They Hesitant About Using an Escrow Service?
An escrow service holds your money until the seller successfully transfers the domain to you. After the third-party escrow company affirms that it has the money, it gives the broker or seller the go-ahead to transfer the domain to you. Once this happens, the escrow service disburses the money to your seller.
If a broker is hesitant to use an escrow service, chances are very high that they are a scammer.
Trust Your Gut
Check the reputation of the broker you intend to use. Keep in mind that even the most reputable ones will likely have one or two disgruntled customers.
Most importantly, if the offer feels too good to be true, it probably is.
