Alexis Kestler
Hi there!
Taking your business online opens new avenues for growth. You can serve multiple locations and cater to a large audience. But becoming a well-known brand online also makes you vulnerable to many cybercrimes that threat actors perpetuate to generate money by exploiting your brand‘s goodwill.
And one such crime that can seriously impact your business is cybersquatting. It can cause a loss of web traffic and revenue, damage your online presence, and negatively affect your brand‘s overall reputation.
So in this guide, I want to help you understand precisely what cybersquatting is, how you can detect it, and what you should do if your brand becomes a victim. Let‘s dive in!
What Is Cybersquatting?
Cybersquatting is an unethical act where someone registers, uses, or sells domain names that are identical or confusingly similar to famous brands and people. Their intention is to profit from the goodwill and reputation of the original trademark owners.
Threat actors also use cybersquatting techniques to deliver malware payloads or conduct phishing attacks by creating fake websites that imitate legitimate brands.
Cybersquatting, also known as domain squatting, first became popular in the early days of the commercial internet in the 1990s. At the time, cybercriminals registered domain names related to well-known companies and organizations, betting that the brand owners would want to buy back the domains later at inflated prices. And in many cases, this strategy worked.
But cybersquatting causes real damage to brands and is illegal due to the bad faith intent of the squatters. Thankfully, there are laws and regulations like the Anticybersquatting Consumer Protection Act to help protect organizations from cybersquatting incidents.
According to the World Intellectual Property Organization (WIPO), cybersquatting cases increased by 3% to 7,196 in 2022 compared to 2021. This shows cybersquatting is still a relevant threat for modern businesses.
How Does Cybersquatting Work?
Cybersquatters use a variety of techniques to either profit from your brand‘s reputation or cause harm to your business. Here are some of the common methods they use:
Buying your unused domain name
In this scenario, the cybersquatter searches online to identify businesses that don‘t yet have a website. They quickly register your company name as a .com domain before you do.
Later when you want to create your company website, you find your ideal domain is already taken. When you contact the domain owner, they demand an outrageously high price to sell it to you.
Registering typos or variations of your domain
If a cybersquatter cannot acquire your exact domain name, they will try to register common typos like googel.com instead of google.com. Or they might register variations like yourcompany.org or yourcompany.info.
The goal is to profit when users accidentally mistype your official domain name and end up at the typosquatted site instead. Those sites typically contain pay-per-click ads, phishing scams, or malware downloads.
Pretending to be your brand with a fake website
More sophisticated cybersquatters will build out entire fake websites on their squatted domains to fully imitate your company‘s look and feel.
Users who visit those imitation sites may be tricked into providing sensitive information through phishing forms. Or the site may attempt drive-by malware downloads to infect visitors‘ devices.
Redirecting traffic to competitor sites
Cybersquatters may also redirect their squatted domains to one of your competitor‘s websites. This tactic channels your potential customers to another business, harming your brand awareness and sales.
As you can see, cybersquatting can severely impact a company‘s revenue and reputation if not addressed quickly. Next, let‘s look at the different types of cybersquatting threats.
Types of Cybersquatting Threats
Cybersquatters use an array of tactics to either extort money from brands or damage their reputation and business. Here are the main cybersquatting threats to be aware of:
#1. Typosquatting
Also called URL hijacking, typosquatting relies on users‘ common spelling errors or typos. The cybersquatter registers misspelled versions of popular websites and brands.
For example, they may use googkle.com, amzon.com, or applle.com. When users mistakenly type the wrong URL, they end up at the typosquatting site instead.
This allows the cybersquatter to:
- Redirect traffic to a competitor site
- Generate pay-per-click ad revenue
- Install malware on visitors‘ devices
- Run phishing scams
- Resell the domain at an inflated price
Research by Recorded Future found 2.7% of the Fortune 500 companies deal with typosquatting issues. And domains hosting typosquatting content increased by more than 200% between 2020-2022.
#2. Identity Theft Cybersquatting
In this technique, the cybersquatter uses tools to identify domain names that are about to expire. If the current owner forgets to renew their registration, the cybersquatter quickly snatches up the domain.
They build out a copycat website that impersonates the previous legitimate business. Now when visitors arrive, they assume it‘s the original company‘s site. The imposter site can be used to display fake ads, distribute malware payloads, or capture users‘ personal information.
#3. Name Jacking
With name jacking, the cybersquatter registers domain names using the real names of famous celebrities and public figures.
For example, they could buy johnlegend.com or lebronjames.com. This makes it difficult for the celebrity to reclaim their name since the cybersquatter is not technically infringing on an existing trademark.
However, public figures can get around this by trademarking their personal names. This provides the necessary legal grounds to take action against the name jacker.
#4. Reverse Domain Hijacking
Also called reverse cybersquatting, this sneaky tactic turns the tables on existing brand owners. The hijacker first selects a popular website that they want to take over.
Next, they register an unrelated business name that just happens to match the target website‘s domain name. Then the hijacker files a dispute claiming the domain infringes on their trademarked business name.
If successful, this malicious complaint can result in the domain being seized from the original owner and awarded to the hijacker.
#5. Gripe Sites
While not as financially motivated as other cybersquatting attacks, gripe sites aim to damage a company‘s reputation.
The cybersquatter registers a domain using the brand name combined with negative terms like "[company]sucks" or "[company]scam." They populate the gripe site with content criticizing or spreading misinformation about the company.
Gripe sites leverage the brand‘s name recognition to achieve maximum visibility for their libelous claims. While gripe sites themselves may not be illegal, they often cross the line into malicious slander.
Now that you know how cybersquatting works and the common attack methods, let‘s look at some real-world examples of cybersquatting cases.
High-Profile Cybersquatting Examples
Cybersquatting can affect companies of all sizes and in all industries. Here are some notable cases of large brands falling victim to cybersquatting schemes:
Madonna
In 2000, an online entrepreneur registered madonna.com and planned to use the domain for a porn site. After a lengthy legal battle, ICANN ultimately ruled in Madonna‘s favor, and she regained control of the domain.
PETA
The animal rights group had its name typosquatted in 1998 when someone registered peta.org (the real site is peta.com). PETA sued the registrant and successfully reclaimed the domain.
Apple & Microsoft
In the 1980s and 90s, variations of apple.com and microsoft.com like applerecords.com, applecomputer.com, and microsoftcorporation.com were registered by opportunistic cybersquatters looking to later sell the domains at a profit. Both companies now own the relevant domains.
Nissan
The Nissan Motors company fell victim to a reverse hijacking scheme when a small computer business called Nissan Computer Corp filed a complaint to take over nissan.com and nissan.net. However, the World Intellectual Property Organization ruled Nissan Motors was the rightful owner.
Instagram and YouTube
Before video site YouTube and photo app Instagram were founded, their .com domains were registered by cybersquatters hoping to eventually sell them for a huge profit. The companies reportedly paid $1.5 million and $200,000 respectively to acquire their domains.
As you can see from these examples, big brands make attractive targets for cybersquatting scams. Even with their financial resources, reclaiming squatted domains can be an expensive and time-consuming process for companies.
Next, let‘s go over how you can detect cybersquatting targeting your own business.
How To Detect If Your Brand Is Being Cybersquatted
If your business wants to create a website but finds your ideal domain name is already registered, how can you determine if it‘s a case of cybersquatting?
Here are some tips to help you spot cybersquatting red flags:
Inspect where the domain redirects
Conduct a whois domain lookup to identify the registered owner. Then visit the domain to see where it leads.
If you encounter a "domain for sale" page with an exorbitant price, that‘s a potential sign of cybersquatting. Sites under construction may just mean a legitimate registration.
But if the domain redirects to a direct competitor, displays your brand‘s ads, or asks for sensitive information, it likely involves malicious cybersquatting.
Search for typosquatted versions of your brand name
Use online typosquatting checkers to generate and look up intentional misspellings of your domains. Tools like DNSTwister help uncover hidden typosquatting threats targeting your brand.
Monitor expiring domains
Domains are typically registered for just 1-10 years. Use domain monitoring services to check for domains expiring soon that may require defensive registrations to protect your brand names.
Research the registrant
Does a quick web search of the domain owner turn up any red flags? Are they clearly unaffiliated with your brand or industry? That‘s a clue it may be a cybersquatter exploiting your trademark.
With these detection techniques, you can proactively uncover cybersquatting risks and take steps to either reclaim or block malicious domain registrations.
Next I‘ll cover the actions you can take if you confirm your brand is being targeted.
How To Reclaim or Shut Down a Cybersquatted Domain
Discovering your brand name or trademarks are being exploited by a cybersquatter is frustrating. But thankfully there are actions you can take to reclaim your domain or shut down the offending website:
File a UDRP complaint
The Uniform Domain-Name Dispute-Resolution Policy is an arbitration process overseen by ICANN. It provides a faster and cheaper first option compared to court litigation.
If the UDRP panel agrees the domain was registered in bad faith, they can order it to be deleted or transferred to you. UDRP cases typically take about 2 months to resolve.
Pursue legal action under the ACPA
For more extensive cybersquatting disputes, the Anticybersquatting Consumer Protection Act allows you to sue offenders directly in court. This opens up the possibility of recovering financial damages.
But the downside is ACPA lawsuits tend to be slow and expensive compared to UDRP proceedings. You‘ll need to hire lawyers to build your case and prove the cybersquatter acted maliciously.
Report phishing & malware sites
If the domain is actively being used for phishing scams or malware distribution, immediately report it to web browser blacklists, cybersecurity vendors, hosting providers, and domain name registrars to initiate a shutdown.
Proactively monitoring for and addressing cybersquatting risks is key to protecting your brand online. Next I‘ll go over proactive anti-cybersquatting strategies.
How To Proactively Prevent Cybersquatting
The best defense is a good offense when it comes to combatting cybersquatting. Here are proactive tactics to lock down your brand‘s domains:
Register key brand name domains
Beat cybersquatters at their own game by preemptively registering all related domains you may want to use now or in the future. Consider different extensions like .com/.net/.org and common typos.
You can point the domains to your main site or set up simple landing pages. This constructive defensive registration makes it impossible for others to exploit those domains.
Add domain monitoring
Enabling domain monitoring services gives you an early warning system for domains at risk. Features like expiring domain alerts and domain name typo monitoring help you take preventative protective actions.
Use ICANN registrar lock
Enable ICANN‘s registrar lock that requires extra authorization before your domain settings can be altered. This adds an extra layer of protection against changes by unauthorized parties.
Automate domain renewals
Set your domain names to auto-renew each year so you never lose control due to an accidental lapse in registration. This prevents opportunistic cybersquatters from swooping in to steal recently expired domains.
Proactively securing your online domains from cybersquatters ensures they can never use your brand names against you.
Now let‘s look at the top specialized anti-cybersquatting software solutions available.
Top Anti-Cybersquatting Software
Specialized cybersquatting protection software and services can automate discovering and responding to domain-based threats. Here are some top anti-cybersquatting solutions:
ZeroFox
ZeroFox combines artificial intelligence and human analysts to detect and analyze threats across social media, domains, app stores, and the surface web.
ZeroFox Domain Monitoring helps you:
- Get alerts for newly registered domains using your brands
- Identify typo variations and parody domains
- Assess risk levels with threat reputation scoring
- Automatically submit takedown requests and UDRP complaints
DomainTools Iris
DomainTools Iris focuses specifically on domain and DNS monitoring. Key features include:
- Scans for trademark typosquatting to uncover hidden lookalike domains
- Alerts on registrations for high-risk domains and viral threats
- API integration allows automating domain dispute processes
- Tracks domain and DNS record history changes
CSC Digital Brand Services
Domain management company CSC offers a dedicated Digital Brand Services solution. It provides:
- Domain name monitoring across 400+ TLDs
- Missing domain recovery for lapsed domains
- Online brand threat analysis and notifications
- UDRP complaint assistance and representation
- Ongoing defensive domain portfolio registrations
Comodo Brand Protection
Comodo‘s all-in-one cybersecurity platform includes a Brand Protection module with features like:
- Domain infringement monitoring
- Domain content scraping to detect abusive sites
- Automatic reporting of malicious domains
- Domain portfolio management
- Domain brokerage services
MarkMonitor Brand Protection
MarkMonitor provides a wide range of brand and intellectual property protection services:
- Domain registrations and DNS management
- Phishing and piracy takedown services
- Social media brand monitoring
- Anti-fraud and anti-diversion solutions
- Custom domain dispute support
The right brand protection software solution provides invaluable visibility and automation for addressing the cybersquatting threat landscape.
I hope this guide gave you a helpful overview of today‘s major cybersquatting risks and how to safeguard your business against domain-based attacks. Remember to be proactive about monitoring and registering your brand‘s domains before cybersquatters can exploit them.
Let me know if you have any other questions!
