The perfect domain name, and with so much traffic, excellent. How fortuitous to have found this domain name up for sale. Don’t miss out; you better buy before someone else gets there first, apparently there is great interest in this name. Healthy traffic stats and a fair price, what more could one ask?
Information regarding the amount of traffic visiting a domain is vital when valuing a domain name; you know this and unfortunately, so do scammers. Read the following article and learn how this scam works and the questions you must ask.
Scam #5 Pump and dump scam
This scam is so simple it may never go away. It begins with a devious seller and a cheap domain name; they manufacture an increase in traffic received, i.e. they ‘pump’ it up. This is achieved through various methods including link exchanges, ISP bots and spam emails inviting visitors to the website; regrettably there are companies that sell fake traffic with a randomizing function producing various keywords, origins and time-spans. Once the site/domain name is sufficiently pumped, thus appearing valuable, potential buyers are targeted.
Buyers beware
The fraudulent seller will approach buyers through a domain aftermarket, listing it for sale; it should be remembered that aftermarket sites are, for the most part, not part of the scam, they are merely used and abused by the fraudster. But, the fact that the aftermarket site has a reputable name helps to promote the sale as honest, and enables the fraudster to hide behind a trusted brand. Lest we forget, aftermarket sites are only acting as technical intermediaries; their terms and conditions always state that the site does not guarantee traffic stats, thus protecting themselves from possible recriminations.
The aftermarket platform reaches a large audience of unsuspecting buyers, unfortunately greedy fraudsters also target online forums; but this approach has its downside, astute domain investors ask too many questions and perform due diligence. Being unmasked as a fraudster will deter some from this method; but records on Whois can be altered (in violation of the registrar’s terms) and false identities created, buyers must remain alert.
Domain name sold, it has been ‘dumped’; sit back and watch the traffic disappear.
When buying a domain name… due diligence
Is there a way to avoid this scam? Yes indeed, it is called ‘don’t be gullible’. What the fraudsters are promoting is too good to be true; get-rich-quick schemes exist but do not, never have, and never will work.
It is up to you, the buyer, to investigate the history and stats of a domain name/website; never trust the traffic figures, always check they are genuine. If a domain name displays fantastic traffic but zero backlinks, ask yourself why. Always check whether the domain name listed in recognized directories?
Try to deal with sellers boasting positive feedback and a good sales history. Speak with the seller and ask questions, if they are reluctant to share information, walk away and save your money; an honest seller has nothing to hide.
Seek and ye shall find, if not… walk away
The best defence against the pump and dump scam is research; if the answers are hard to come by or you feel they are being hidden from you, walk away and save your money.
Oops, you’ve been dumped on
Not good, especially if you invested a large sum. If you are prepared for some hard work then all need not be lost, it is possible to turn your loss into a profit by monetizing your domain.
Do not be embarrassed to ask for help, email sales@eurodns.com or speak with your EuroDNS account manager; our team consists of domain name experts and fraud busters, who would be more than happy to help with your investigations.
Further reading – it’s a dangerous world out there
This article is part of the EuroDNS Scam Alarm series; we want you to be fully aware of all possible hazards and threats to your livelihood and property so we regularly publish advice, information and warnings. Please subscribe to the EuroDNS Newsletter which contains not only Scam Alarm articles but all the latest domain industry news and our regular promotions.
Scam #1 Domain slamming
Scam #2 Fake trademark protection
Scam #3 Search engine submission
Scam #4 Domain name appraisal
Information regarding the amount of traffic visiting a domain is vital when valuing a domain name; you know this and unfortunately, so do scammers. Read the following article and learn how this scam works and the questions you must ask.
Scam #5 Pump and dump scam
This scam is so simple it may never go away. It begins with a devious seller and a cheap domain name; they manufacture an increase in traffic received, i.e. they ‘pump’ it up. This is achieved through various methods including link exchanges, ISP bots and spam emails inviting visitors to the website; regrettably there are companies that sell fake traffic with a randomizing function producing various keywords, origins and time-spans. Once the site/domain name is sufficiently pumped, thus appearing valuable, potential buyers are targeted.
Buyers beware
The fraudulent seller will approach buyers through a domain aftermarket, listing it for sale; it should be remembered that aftermarket sites are, for the most part, not part of the scam, they are merely used and abused by the fraudster. But, the fact that the aftermarket site has a reputable name helps to promote the sale as honest, and enables the fraudster to hide behind a trusted brand. Lest we forget, aftermarket sites are only acting as technical intermediaries; their terms and conditions always state that the site does not guarantee traffic stats, thus protecting themselves from possible recriminations.
The aftermarket platform reaches a large audience of unsuspecting buyers, unfortunately greedy fraudsters also target online forums; but this approach has its downside, astute domain investors ask too many questions and perform due diligence. Being unmasked as a fraudster will deter some from this method; but records on Whois can be altered (in violation of the registrar’s terms) and false identities created, buyers must remain alert.
Domain name sold, it has been ‘dumped’; sit back and watch the traffic disappear.
When buying a domain name… due diligence
Is there a way to avoid this scam? Yes indeed, it is called ‘don’t be gullible’. What the fraudsters are promoting is too good to be true; get-rich-quick schemes exist but do not, never have, and never will work.
It is up to you, the buyer, to investigate the history and stats of a domain name/website; never trust the traffic figures, always check they are genuine. If a domain name displays fantastic traffic but zero backlinks, ask yourself why. Always check whether the domain name listed in recognized directories?
Try to deal with sellers boasting positive feedback and a good sales history. Speak with the seller and ask questions, if they are reluctant to share information, walk away and save your money; an honest seller has nothing to hide.
Seek and ye shall find, if not… walk away
The best defence against the pump and dump scam is research; if the answers are hard to come by or you feel they are being hidden from you, walk away and save your money.
Oops, you’ve been dumped on
Not good, especially if you invested a large sum. If you are prepared for some hard work then all need not be lost, it is possible to turn your loss into a profit by monetizing your domain.
Do not be embarrassed to ask for help, email sales@eurodns.com or speak with your EuroDNS account manager; our team consists of domain name experts and fraud busters, who would be more than happy to help with your investigations.
Further reading – it’s a dangerous world out there
This article is part of the EuroDNS Scam Alarm series; we want you to be fully aware of all possible hazards and threats to your livelihood and property so we regularly publish advice, information and warnings. Please subscribe to the EuroDNS Newsletter which contains not only Scam Alarm articles but all the latest domain industry news and our regular promotions.
Scam #1 Domain slamming
Scam #2 Fake trademark protection
Scam #3 Search engine submission
Scam #4 Domain name appraisal