Most domain name investors are familiar with the domain name appraisal scam. You get an e-mail from someone interested in buying your domain. When you agree to a price, they ask you to get an appraisal from a particular company so they can be sure of the value. The “buyer” is actually associated with the appraisal company and he is just trying to get you to buy an appraisal. See Anatomy of a domain name appraisal scam for details if you are unfamiliar with this scam.
It seems that domain name owners have caught on to the domain name appraisal scam, so the scammers are trying a new approach. They follow a similar approach to the appraisal scam, but instead ask you to get an independent trademark verification on the domain.
It follows the same pattern as the appraisal scam. The “buyer” claims to have researched the best trademark verification companies and suggests one that has a “reasonable price and comes highly recommended”.
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Here’s an example of an email from the buyer:
200 euro. Accepted. Thank you for giving me your quote. I think we should use escrow.com. They provide secure transactions. It’ll be safe for both of us.
There is another important issue for me. Some of my friends lost money after buying stolen names. Others had problems with trademarks. So I must be sure you are the real owner and your domain name has no trademark conflicts.
This is a serious problem for the whole domain industry. You can read about the problem at
http://www.stopscum.com/archives/i_j…_was_easy.html
http://gnso.icann.org/mailing-lists/…/msg02020.html
More information about trademark conflicts can be found at
http://www.patents.com/dno.htm
I hope now you understand why I need to verify this information before we go further.
Can you recommend an online service that can verify trademark problems and the ownership?
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After reassuring the buyer that there’s no need for a trademark search, you get the following email:
I made my online research and found two reliable services we could use to verify your domain name.
First service URL http://www.legalzoom.com
But their service “WorldScan U.S. and International Search $499.00” is very expensive for us.
I found a cheaper service – http://www.softforces.com/checkdomain.htm
These guys were recommended as Internet security professionals. Looks like this service is unique because I’ve not found anything similar in the Internet. They will verify your domain through the stolen names database and will run other tests. I’m not a lawyer and need professional opinion on the trademark issue. After we check your domain name we’ll proceed with www.escrow.com or other similar service.
This “check domain” service allows to split the fees 50% / 50% between buyer and seller. I thinks it’s fair.
They will verify your domain through the stolen names database and will run other tests. I’m not a lawyer and need professional opinion on the trademark issue.
I’ve already ordered my part and paid $49 fee. I specified your email address so you must receive a confirmation from them shortly. You should submit your information and they will check your domain name.
They will email us the results within 1-2 business days.
There are a couple things that stand out here that should tip your hat:
1. Someone wants to spend $100 to verify a 200 euro domain? That’s like paying $100,000 for an appraisal of a $250,000 house!
2. No buyer would go ahead and pay $49 without you agreeing to already pay the other half. I have to hand it to the scammers, though. This “I’ll pay half” thing is new and creative.
There will be other variations of this scam. I’m sure it works well because a number of domain name investors are excited to get offers on their domains. Always be suspicious, and try to work your sales through a reputable channel like Afternic or Sedo.
You can keep up-to-date on this scam on the following threads:
DNforum
WebhostingTalk
James says
This is truely an eye-poping caution !
I’m new to domain name sale, and got my domain parked via paid parking program.
How are we going to protect ourself from such scam, and more of similiar scams?
Editor says
James,
The are a number of warning signs in the buyer’s emails that this is a scam. The best thing to do is require offers be made through Sedo or Afternic. Although that will cost you 10%, the buyers will follow through with the deal. Be especially suspect of someone that says they found your domain for sale at Sedo and that’s why they’re contacting you.
Martin says
I added some more comments about this in the report I sent you Andrew. One thing I really don’t get about this is that the order for the Trademark verification service is on a real ecommerce provider like http://emetrix.com/ .
This deserves further investigation, because the company’s name used in the Scam, http://SOFTFORCES.com/ is a real merchant which exists in Emetrix database.
So indeed there are more people involved in this and it’s definitivaly good to research and report to the authorities.
Sebastian says
I have just received one of those from Klaus Henson – Opera Technologies. Stay Alert Guys!!!
Tom says
Just got a similar one also. Very glad I found this site. Name used this time was:
Paul Anestad Ph.D.
CEO
Opera Engineering
using email address:
[email protected]
SCAM SCAM SCAM!! Thanks again for the post.
Barney says
Received same emails…only with the name
James Ueland Ph.D.
Trying to get me to pay for appraisals.
Softforces.com and allfordomains.com is the same company.
Emetrix is just their online payment processor. Probably not involved but should be alerted.
king of cartoons says
Can anyone shed some light on a current situation I’ve encountered? I registered a seemingly random domain name that I wanted to save for a retirement business 20 years from now. I’ve done nothing with the domain and I was contacted recently by a small business owner who happens to be in the process of Trademarking the exact phrase I used in my domain name. They’ve asked if I wanted to sell the domain name and indicated it would be unusable if I held onto it. After doing some reading on ACPA it appears that I could be considered as having acted in “bad faith”, by simply naming a price for which this individual could purchase the domain, (which I have not yet done). But it seems like even if I do nothing this individual could still come after me for ownership of the domain and could potentially exact damages. Has anyone encountered a situation like this – where a domain was regsitered, not used and subsequently was trademarked by a 3rd party? Thanks in advance for any guidance.
DUI says
Has anyone seen this one? His return email is [email protected]. Minutes after new SEDO listing:
Hello, My name is Jeffrey Burnstein and I’m very interested in your domain. Investing in domains is a profitable business. Please let me know your price for the domain in the subject line. If you have other good names just send me the list with prices. Looking forward to do business with you. Regards,Jeffrey BurnsteinCEOOBS LLC
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Melissa Getz says
Son of an unhappy person! I had the exact same thing happen to me YESTERDAY! I thought there is no way someone would bother me to get me to spend a measly $50 (39 EUR) to get an appraisal done, but apparently THAT IS WHAT this punk is doing. My scammer’s name is David Rotman (he can rot for all I care) and his email address is: [email protected].
I Googled two sentences from his email, word for word, and they came back with links. This guy uses different names so be aware and Google the statements with poor English to see if they send up a warning.
So now, how worried do I have to be that he’s going to try to steal my identity or any of the domain names I told him I own? That is the only thing I regret. He knows the names of the domains I own and one day was hoping to make some money because I own them. (That has been a total waste of my savings.)