Comments on: Do Not Try This At Home: Domain Auction Scamming http://www.dotweekly.com/do-not-try-this-at-home-domain-auction-scamming/ Sun, 12 Feb 2012 21:29:56 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Jamie Zoch http://www.dotweekly.com/do-not-try-this-at-home-domain-auction-scamming/#comment-12207 Jamie Zoch Mon, 06 Sep 2010 14:01:21 +0000 http://www.dotweekly.com/?p=1843#comment-12207 @Bosh, That would make sense but the fake bidder would have to be the first bid! If they didn't see the domain until several bids were placed already.. they had to spend a little more money ($355) to be the highest bidder. Then the remaining high fake bids come in to push away other bidders so they do not have to pay any more. @Bosh,
That would make sense but the fake bidder would have to be the first bid! If they didn’t see the domain until several bids were placed already.. they had to spend a little more money ($355) to be the highest bidder. Then the remaining high fake bids come in to push away other bidders so they do not have to pay any more.

]]> By: Bosh http://www.dotweekly.com/do-not-try-this-at-home-domain-auction-scamming/#comment-12203 Bosh Mon, 06 Sep 2010 08:17:32 +0000 http://www.dotweekly.com/?p=1843#comment-12203 I think I'm missing something here. Why not cut out the "would they charge bidder #1 $10 or $20,100?" question completely, and do something along the lines of: bidder#1: $10 bidder#2: $20,000 And then that's it. Bid #2 is a no pay, and whether or not bids get disregarded it defaults to bid #1's $10. Right? I think I’m missing something here. Why not cut out the “would they charge bidder #1 $10 or $20,100?” question completely, and do something along the lines of:

bidder#1: $10
bidder#2: $20,000

And then that’s it. Bid #2 is a no pay, and whether or not bids get disregarded it defaults to bid #1′s $10. Right?

]]> By: Wallace http://www.dotweekly.com/do-not-try-this-at-home-domain-auction-scamming/#comment-12202 Wallace Mon, 06 Sep 2010 06:37:37 +0000 http://www.dotweekly.com/?p=1843#comment-12202 this is the true reason why we should not use Godaddy auction. this is the true reason why we should not use Godaddy auction.

]]> By: Quoc http://www.dotweekly.com/do-not-try-this-at-home-domain-auction-scamming/#comment-6370 Quoc Wed, 01 Jul 2009 07:23:38 +0000 http://www.dotweekly.com/?p=1843#comment-6370 Ouch, I've found a trustable source that unintentionally described exactly what and where could be done in real life, the scam in this fictional story. http://www.thedomains.com/2009/03/13/namejet-non-paying-bidder-policys-is-hurting-its-auction-and-its-bidders/ LINE 33, from top "... offers the domain to the second highest bidder, without regard to the non-paying bidders, bids..." So, the 10k domain can be taken for as little as 10 bucks is not impossible. Ouch, I’ve found a trustable source that unintentionally described exactly what and where could be done in real life, the scam in this fictional story.

http://www.thedomains.com/2009/03/13/namejet-non-paying-bidder-policys-is-hurting-its-auction-and-its-bidders/

LINE 33, from top
“… offers the domain to the second highest bidder, without regard to the non-paying bidders, bids…”

So, the 10k domain can be taken for as little as 10 bucks is not impossible.

]]> By: Huy Nguyen http://www.dotweekly.com/do-not-try-this-at-home-domain-auction-scamming/#comment-6364 Huy Nguyen Tue, 30 Jun 2009 22:25:55 +0000 http://www.dotweekly.com/?p=1843#comment-6364 The above story is fictional one! However, I know the true story like this: After the bidder won the domain with very high price, he tried to contact and bought the domain with very low price (compare to the bidding price) from the current owner. Because of the Godaddy auction policy, the current owner would still have about 7 days (or 5 days!) to pay the redemption fee (about $100) after the Godaddy auction and get the domain back. ...and I know this story is still happening! The above story is fictional one! However, I know the true story like this:

After the bidder won the domain with very high price, he tried to contact and bought the domain with very low price (compare to the bidding price) from the current owner. Because of the Godaddy auction policy, the current owner would still have about 7 days (or 5 days!) to pay the redemption fee (about $100) after the Godaddy auction and get the domain back.

…and I know this story is still happening!

]]> By: blargh http://www.dotweekly.com/do-not-try-this-at-home-domain-auction-scamming/#comment-6360 blargh Tue, 30 Jun 2009 21:21:45 +0000 http://www.dotweekly.com/?p=1843#comment-6360 I know who you are talking about, bidder #1 would have to pay $20,100 to get the domain, their highest bid. Only the non-payers highest bid is void I know who you are talking about, bidder #1 would have to pay $20,100 to get the domain, their highest bid. Only the non-payers highest bid is void

]]> By: Adam http://www.dotweekly.com/do-not-try-this-at-home-domain-auction-scamming/#comment-6357 Adam Tue, 30 Jun 2009 18:48:07 +0000 http://www.dotweekly.com/?p=1843#comment-6357 Jamie agree but obviously taking away all bidder #2's bids leaves the door open for the abuse that you described above. Additionally, I wouldn't just focus on the online auctions/expired domain auctions. What about the live auctions that we never hear about bidders who backed out or didn't pay? Some of these bidders may have been bidding up other auctions. Say I'm bidding on xyz.com and bidder #2 is as well (at the even or via pc) . They don't buy the domain but run the auction up another 10k. They later buy a few domains and then never pay for those names. Currently there is no method (or incentive for the auction houses for that matter) to track those bogus bids or account for them and refund the costs that these bogus bidders racked up on the unknowing bidders. Those bids shouldn't count either but you don't see anyone getting refunds. Hard telling if this has happened but there was an auction where a bidder backed out of dozens of transactions ( http://www.domainnamenews.com/domain-aftermarket/mobi-buyers-remorse/1300 ) and it was made public. There really was no way to know what else this bidder bid on and didn't win. This potentially cost buyers even more money. Make sense ? Jamie agree but obviously taking away all bidder #2′s bids leaves the door open for the abuse that you described above.

Additionally, I wouldn’t just focus on the online auctions/expired domain auctions. What about the live auctions that we never hear about bidders who backed out or didn’t pay? Some of these bidders may have been bidding up other auctions.
Say I’m bidding on xyz.com and bidder #2 is as well (at the even or via pc) . They don’t buy the domain but run the auction up another 10k. They later buy a few domains and then never pay for those names. Currently there is no method (or incentive for the auction houses for that matter) to track those bogus bids or account for them and refund the costs that these bogus bidders racked up on the unknowing bidders. Those bids shouldn’t count either but you don’t see anyone getting refunds. Hard telling if this has happened but there was an auction where a bidder backed out of dozens of transactions ( http://www.domainnamenews.com/domain-aftermarket/mobi-buyers-remorse/1300 ) and it was made public. There really was no way to know what else this bidder bid on and didn’t win. This potentially cost buyers even more money. Make sense ?

]]> By: Jamie Zoch http://www.dotweekly.com/do-not-try-this-at-home-domain-auction-scamming/#comment-6356 Jamie Zoch Tue, 30 Jun 2009 17:10:11 +0000 http://www.dotweekly.com/?p=1843#comment-6356 @Adam, I understand what your talking about, but not removing ALL of the "bad bidders bids" is silly and something in no way would I be paying. If the #2 bid was Fake (non-paying bidder), there is no reason for that bid to count or any bids from bidder #2. If the "second bid" forces bidder #1 to bid again via proxy bid or hard bid, why should bidder #1 have to pay the bid #3 price if there really isn't a "real" bid #2? ~ Consider it a Proxy bid, because that's what it really is. Without Bid #2, bid #3 would not have to take place. ~ Not removing <strong>ALL</strong> of the "bad bidders" bids would be like saying it's OK to "Shill Bid" and allowing "some" of those bids to stay. It just doesn't make sense. @Adam,
I understand what your talking about, but not removing ALL of the “bad bidders bids” is silly and something in no way would I be paying. If the #2 bid was Fake (non-paying bidder), there is no reason for that bid to count or any bids from bidder #2. If the “second bid” forces bidder #1 to bid again via proxy bid or hard bid, why should bidder #1 have to pay the bid #3 price if there really isn’t a “real” bid #2?
~
Consider it a Proxy bid, because that’s what it really is. Without Bid #2, bid #3 would not have to take place.
~
Not removing ALL of the “bad bidders” bids would be like saying it’s OK to “Shill Bid” and allowing “some” of those bids to stay. It just doesn’t make sense.

]]> By: Nashville Retail Space http://www.dotweekly.com/do-not-try-this-at-home-domain-auction-scamming/#comment-6355 Nashville Retail Space Tue, 30 Jun 2009 16:37:21 +0000 http://www.dotweekly.com/?p=1843#comment-6355 Very interesting article. I wonder how long it takes before all the online auction companies revise their policies. There could be a lot of money left on the table if people are really doing this. Very interesting article. I wonder how long it takes before all the online auction companies revise their policies. There could be a lot of money left on the table if people are really doing this.

]]> By: Adam http://www.dotweekly.com/do-not-try-this-at-home-domain-auction-scamming/#comment-6354 Adam Tue, 30 Jun 2009 14:28:38 +0000 http://www.dotweekly.com/?p=1843#comment-6354 I think you are offbase here. They do not void all the "bad bidders" bids... In my experiences having won domains that other bidders backed out of, the last bid I placed is what I bought the name at. Since bidder #1 bid up to 20,100 that bid would be their final bid and what they would be paying . . .at least in my experience. I think you are offbase here. They do not void all the “bad bidders” bids… In my experiences having won domains that other bidders backed out of, the last bid I placed is what I bought the name at.

Since bidder #1 bid up to 20,100 that bid would be their final bid and what they would be paying . . .at least in my experience.

]]> By: Jamie Zoch http://www.dotweekly.com/do-not-try-this-at-home-domain-auction-scamming/#comment-6351 Jamie Zoch Tue, 30 Jun 2009 12:17:40 +0000 http://www.dotweekly.com/?p=1843#comment-6351 @Quoc Since the auction in this story is an <strong>expired domain name</strong>, that means the registrar is selling the domain. As mentioned in the story, thousands of auctions end each day during auction, so ONE domain name auction doesn't always stick out more then another even if there is a non-paying bidder. @Quoc
Since the auction in this story is an expired domain name, that means the registrar is selling the domain. As mentioned in the story, thousands of auctions end each day during auction, so ONE domain name auction doesn’t always stick out more then another even if there is a non-paying bidder.

]]> By: Ross http://www.dotweekly.com/do-not-try-this-at-home-domain-auction-scamming/#comment-6345 Ross Tue, 30 Jun 2009 04:30:22 +0000 http://www.dotweekly.com/?p=1843#comment-6345 I am not exactly sure but it is possible to detect them. I had tried to purchase something online with a pre paid credit card just after christmas and it was declined because it was pre paid. Though after reading this i did some research on the TOS of a couple of auction houses and the ones i looked at had something to the effect of: Information provided must be accurate or its a breach of contract. So in all reality if this was to be pulled off i am sure that the auction houses would catch on at some point. Its not hard to catch these things going especially if it was often. All they have to do is call incorrect information and then i am sure the domain would then be re-auctioned. At the end of the day, i do get the point of the post and think in some cases it is ridiculous especially if the gap between bids is a large one. I am not exactly sure but it is possible to detect them. I had tried to purchase something online with a pre paid credit card just after christmas and it was declined because it was pre paid.

Though after reading this i did some research on the TOS of a couple of auction houses and the ones i looked at had something to the effect of: Information provided must be accurate or its a breach of contract.

So in all reality if this was to be pulled off i am sure that the auction houses would catch on at some point. Its not hard to catch these things going especially if it was often. All they have to do is call incorrect information and then i am sure the domain would then be re-auctioned.

At the end of the day, i do get the point of the post and think in some cases it is ridiculous especially if the gap between bids is a large one.

]]> By: Quoc http://www.dotweekly.com/do-not-try-this-at-home-domain-auction-scamming/#comment-6344 Quoc Tue, 30 Jun 2009 04:07:40 +0000 http://www.dotweekly.com/?p=1843#comment-6344 Can anyone confirm that when: The highest bidder was voided will put the actual bid price back down to $10. That the other bidder (the second highest biddder) will get that domain for only $10 - not paying at his second highest of $20,100 (lost to the highest bidder of $20,200? The auction owner in this fictional story couldn't be that dumb to let it happen? Can anyone confirm that when: The highest bidder was voided will put the actual bid price back down to $10. That the other bidder (the second highest biddder) will get that domain for only $10 – not paying at his second highest of $20,100 (lost to the highest bidder of $20,200?

The auction owner in this fictional story couldn’t be that dumb to let it happen?

]]> By: Jamie Zoch http://www.dotweekly.com/do-not-try-this-at-home-domain-auction-scamming/#comment-6343 Jamie Zoch Tue, 30 Jun 2009 02:40:58 +0000 http://www.dotweekly.com/?p=1843#comment-6343 @ross I use a Paypal debit card. I am not 100% sure if pre-paid credit cards are accepted at all domain name auction services, but I also question how one can tell if it's a pre-paid or not? http://www.ehow.com/how_4932785_use-prepaid-visa-credit-card.html read the #2.. that person used it for a domain name. (doesn't say auction or not) @ross
I use a Paypal debit card. I am not 100% sure if pre-paid credit cards are accepted at all domain name auction services, but I also question how one can tell if it’s a pre-paid or not? http://www.ehow.com/how_4932785_use-prepaid-visa-credit-card.html read the #2.. that person used it for a domain name. (doesn’t say auction or not)

]]> By: Jamie Zoch http://www.dotweekly.com/do-not-try-this-at-home-domain-auction-scamming/#comment-6342 Jamie Zoch Tue, 30 Jun 2009 02:34:32 +0000 http://www.dotweekly.com/?p=1843#comment-6342 @michael, I agree and the reason I wrote it. I know they read my blog ;) . I think a lot of things need to be changed with online auctions in general like "verified bidders". It seems that nearly anybody can bid with a credit card. @michael,
I agree and the reason I wrote it. I know they read my blog ;) . I think a lot of things need to be changed with online auctions in general like “verified bidders”. It seems that nearly anybody can bid with a credit card.

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