Cybersquatting poses a serious threat for brands looking to build an online presence. By registering domains similar to famous trademarks, cybersquatters profit off the goodwill and reputation of established brands. Left unchecked, cybersquatting can divert customers, damage credibility, and result in major financial losses.
In this comprehensive guide, we will demystify everything brands need to know about detecting and protecting against cybersquatting.
What Exactly is Cybersquatting?
Cybersquatting refers to the unethical practice of registering, trafficking, or using domain names identical or confusingly similar to trademarks with the bad faith intent of profiting from the goodwill of the trademark owner.
The most straightforward example is when a cybersquatter registers cocacola.com before The Coca-Cola Company has a chance to do so. When the brand tries to register their trademark as a .com domain, they find it unavailable. The cybersquatter then tries to resell it to Coca-Cola at an inflated price.
Cybersquatting was especially rampant in the early days of the internet when speculators registered the domains of major brands before the brands even considered having an online presence.
Although rules and regulations like the Anticybersquatting Consumer Protection Act now discourage blatant cybersquatting, it remains a threat with cybersquatters using more sophisticated tactics.
The Typical Cybersquatting Business Model
Cybersquatters employ a range of tactics to profit from the domains they register in bad faith:
Resell at Inflated Prices: A straightforward tactic where the cybersquatter tries to resell the domain to the trademark owner at prices exponentially higher than registration costs. This trade relies on a lack of availability for the domain rather than any improvements made by the cybersquatter.
Ransom the Domain: Similar to reselling, but sometimes no actual sales price is quoted. The cybersquatter may ask for an unspecified "reasonable offer" before they consider transferring the domain. This introduces additional uncertainty and delays for the brand.
Run Pay-Per-Click Ads: Even if the brand does not purchase the domain, the cybersquatter can develop the site and display contextually targeted ads. If they choose popular trademarks, high search volume for those terms would drive traffic and ad revenue.
Spear Phishing Sites: More malicious cybersquatters use the domains to host convincing fakes of popular sites to steal login credentials or personal information from unsuspecting visitors.
For brands, the problem poses threats beyond just the financial losses from purchasing domains. Cybersquatting can also lead to lost web traffic and sales from customers ending up on squatters sites. It also severely damages brand credibility and trust if customers are phished.
Real World Examples of Cybersquatting Cases
Cybersquatting has impacted major global brands like Coca-Cola as well as small local businesses. Some high profile cases include:
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Dan Parisi registered madonna.com in 1994 before Madonna thought to register her name as a domain. After a lengthy legal battle, the domain was awarded to the pop star in 2000.
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In 2020, Google won a complaint against the registration of android.co.in. Android is a registered trademark of Google.
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PETA sued Michael Doughney for creating peta.org, a parody site critical of the animal rights group. The disputes site was ultimately ordered to be transferred to PETA.
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TikTok parent company ByteDance recently regained control of tiktok.com after it was registered in 2018 by an unrelated Australian app development firm.
For less established brands just building their online presence, the impacts of finding their trademark domain registered can be catastrophic. Cybersquatting threatens both profitability as well as credibility.
Different Types of Cybersquatting Attacks
Cybersquatters employ a variety of tactics beyond simply registering valuable domains. Some of the most common cybersquatting attacks include:
Typosquatting
Typosquatting relies on internet users mistyping the names of popular sites and landing on typo-versions registered by cybersquatters. For example, registring amzon.com to target visitors looking for Amazon.
Typosquatting domains display ads or install malware. And visitors may not even realize they are on an imposter site.
Identity Theft
Cybersquatters also monitor domain registries for upcoming expirations of valuable domains. If the brand neglects renewal, the cybersquatter quickly registers the domain.
With the original site contents and branding, visitors are unlikely to realize the site is now under new ownership. This facilitates phishing attempts.
Name Jacking
Cybersquatters register domains incorporating the real names of celebrities and public figures. For example, registering johnsmith.com without permission from the person named John Smith.
Proving bad faith intent is difficult, but personality right laws have provided recourse against unauthorized use of personal names.
Reverse Domain Hijacking
A deceptive tactic where the cybersquatter first identifies a desirable domain name currently in use. They then register a business name identical to the domain to assert trademark rights over the domain.
By claiming the domain infringes on their trademark, the cybersquatter may be able to legally gain control of the domain name.
Gripe Sites
While gripe sites like walmart-sucks.com may seem harmless on the surface, cybersquatters often use the domains to spread misinformation or undermine trust in the brand.
When gripped domains steer visitors to competitor sites, it presents a major threat beyond just criticism of the brand.
How To Detect Cybersquatting Cases
For established brands with existing domain portfolios, several steps can help uncover potential cybersquatting threats:
Check Where The Domain Name Goes
When attempting to register a new domain, if you receive notice the domain is unavailable check where it currently goes. Is there an active site? Under construction page? Blank page?
Active sites warrant further inspection. Blank or under construction pages may indicate a speculator seeking to resell the domain, but could also be a genuine buyer.
Seeing direct ads or competitors on the site confirms cybersquatting. But further verification of ownership is prudent before taking legal action.
Identify Typosquatting & Phonetic Versions
Typo versions of valuable domains are low hanging fruit for cybersquatters. Use domain search tools like Domaintools to identify potential typosquatting domains.
Phonetic versions are also popular, like using fidos.com instead of paypal.com. Search for phonetic matches of your trademarks.
Research Current Domain Ownership
WhoIS domain searches reveal the registration details and ownership contacts for a specific domain.
Review WhoIS records to identify patterns suggesting a single entity owns multiple domains related to your trademarks. This helps prove unlawful behavior.
By identifying the registrant, you also obtain the necessary contact information to further investigate or take legal action if cybersquatting is confirmed.
Options For Dealing With Cybersquatting
If your investigation reveals clear cases of cybersquatting, several options exist for regaining control of your domain names:
File Lawsuit Under the ACPA
The most formal approach is filing a lawsuit under the Anticybersquatting Consumer Protection Act (ACPA). The ACPA allows trademark owners to recover domains registered in bad faith. Financial penalties can also apply.
Pursuing a case under the ACPA requires hiring legal counsel experienced in trademark law. Cases typically take at least 12 months to settle.
File Complaint Under UDRP
The Uniform Domain Name Dispute Resolution Policy (UDRP) offers a streamlined domain dispute resolution process. UDRP cases are usually resolved within 2 months and do not require legal counsel.
If the UDRP panel finds in your favor, the domains are seized from the cybersquatter. However, financial restitution is generally not awarded under UDRP proceedings.
Send Cease & Desist Letter
A formal cease and desist letter from your legal counsel provides one last chance for the cybersquatter to voluntarily transfer the domains before facing legal action. Especially if acting in good faith, the letter may prompt cooperation.
However, sophisticated cybersquatters often ignore the letters knowing litigation costs outweigh domain value. Only send a letter if prepared to follow through with a lawsuit.
Preventing Cybersquatting Before It Starts
Beyond reclaiming domains already lost to cybersquatting, brands can take proactive measures to limit risks:
Register Trademarks
Formally registering trademarks with patent offices makes it easier to prove unlawful use in cybersquatting cases. Trademarks also deter bad faith use of protected terms.
Monitoring trademark registries can also help uncover if someone is seeking to registrar your brand name as their own trademark.
Lock Domains
Enable registrar locks and multi-factor authentication for account access to make unauthorized changes to domain registration details more difficult.
Also configure auto-renewal to prevent negligent expiration allowing cybersquatters to scoop abandoned domains.
Register Related Domains
Buy up alternative TLD, typos, and phonetic versions of primary domains to deny their use for cybersquatting. These domains can redirect to the real site.
Domain name suggestion tools like LeanDomainSearch generate multiple semantic variations to consider registering.
Specialized Anti-Cybersquatting Software
Dedicated anti-cybersquatting solutions provide ongoing monitoring for new domain names containing trademarks. Automated takedown processes reduce response time.
Top Anti-Cybersquatting Software Tools
Several software platforms provide specialized support to detect and stop cybersquatting.
ZeroFox Domain Monitoring
ZeroFox provides brands comprehensive protection for their digital assets across social media, domains, app stores, and the deep and dark web.
The ZeroFox platform gives users visibility across all domains containing their brands and trademarks. Users can setup intelligent alerts for suspicious new domains and automate processes for submitting takedown requests and UDRP complaints.
Pricing is tailored based on specific use cases and risk profile.
Comodo Brand Protection
Comodo Brand Protection software takes an AI and ML approach to identifying phishing sites, social media impersonators, fraudulent mobile apps, and typosquatting sites targeting brands.
The system can discover and submit takedown requests for thousands of risky domains every month. Automated workflows allow responding to threats at scale.
Comodo offers flexible risk assessment and implementation advisory services to go along with software subscriptions.
CSC Digital Brand Services
CSC Global offers comprehensive brand protection through proprietary monitoring technology and an in-house investigations team.
Digital Brand Services focuses specifically on phishing sites, brand impersonation social media accounts, and infringing domains. Detailed compliance audits measure effectiveness of brand protection efforts.
Subscriptions are priced based on projected volume of domain and social media assets monitored each month.
OPTEL Brand Compliance Manager
The Brand Compliance Manager platform from OPTEL continually surveys domains, social networks, marketplaces, and app stores globally for trademark violations and brand impersonation.
The software relies on both AI-based automated monitoring as well as human verification processes. Brand security analysts onboard new brands and ensure accuracy of monitoring and alerting capabilities.
Packages start at $5000 per year including analyst support.
Fraud Score from Ekata
Ekata Fraud Score examines elements beyond strictly brand compliance like suspicious site registrations details, hidden WHOIS data, and abnormal web traffic patterns.
By incorporating cybersecurity indicators beyond IP and trademarks, Fraud Score identifies high risk domains across the internet associated with phishing, spamming, or distributing malware.
Subscription plans have flexible pricing based on monthly search volume requirements.
Keeping Site Visitors Safe From Cybersquatting
Beyond protecting their own brands from exploits, businesses also need to consider how cybersquatting impacts customers. A few tips for visitors avoiding traps:
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Carefully double check URLs and validate site SSL certificates to confirm visiting legitimate sites. Watch for subtle typos.
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Refrain from clicking links in unsolicited communications like emails and texts as they may route to fake phishing sites. Manually enter site URLs whenever possible.
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Keep browsers, plugins, and antivirus software up-to-date to avoid exploitation of known vulnerabilities by malware installed by some cybersquatters.
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Confirm legitimacy of unexpectedly favorable offers that seem too good to be true, especially from brands soliciting financial or sensitive personal information.
Maintaining device hygiene through patching and antivirus goes a long way towards preventing successful cybersquatting attacks should a visitor accidentally navigate to a typosquatted domain.
Protect Your Reputation and Profits from Cybersquatting
Left unchecked, cybersquatting poses an existential threat for brands striving towards an online presence in today‘s digital economy. Besides directly siphoning customers, fraudulent domains damage credibility that undermines the marketing foundations modern businesses are built on.
With this comprehensive guide on understanding risks, identifying threats, and exploring software protections, brands can ensure cybersquatters do not jeopardize their domains. Saving customers from confusion and potential fraud remains paramount.
Aligning discovery through monitoring technology with defined response protocols empowers brands to consistently domain reclaim vulnerable domains before exploitation causes irreparable damage.
