Secondary Market Buyers: Please Do Your Due Diligence!

By .CO Internet
.CO Internet

As with all business transactions online, there are certain people who will try to prey on the public through scams masquerading as legitimate business deals. The same is true in connection with the sale of .CO domain names on the secondary market.

It has come to our attention that someone is reaching out to potential domain investors and attempting to sell "fractional shares" of one or more high value .CO domain names for which they do not actually own the registration rights. By attempting to sell unregistered domain names to unsuspecting investors, they are committing fraud. Make sure they aren't committing a fraud on you!

So what can you do to protect yourself? Before you agree to purchase full or fractional ownership rights for any .CO domain name, please do your due diligence. First, make sure you are dealing with someone who actually has the legal right to sell the registration rights for the domain name.

To start, visit www.whois.co, and check to see that the seller you are working with is listed as the named registrant for the domain name, or is an authorized agent of the person listed. We also recommend that you memorialize any domain name purchase or sale with a basic legal contract that will protect your rights and interests.

Every day the .CO community is growing and the secondary marketplace is becoming more exciting and active. More .CO domain names are being bought and sold; More.CO websites are being built; and more new investments are being contemplated. It is only in the rarest of cases that some scammer will try to throw wrench into the fair and orderly functioning of the secondary market. But even if it's just one case — it is one too many for us.

So please, take the time to do your due diligence — and share this information with your friends and colleagues so they too will be protected.

Related topics: Cybercrime, Cybersecurity, Domain Names, Registry Services, New TLDs

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