We are seeing an increase in cybersquatting incidents. What is cybersquatting and how can it affect you?

According to Sentinel One, cybersquatting, or domain squatting, “involves the registration, selling, or use of an Internet domain name in bad faith to profit from the goodwill of a trademark that belongs to someone else.” Cybersquatting spoofs real brands to try to get consumers to click on a fraudulent domain to pay for goods or services that are counterfeit or never sent to the consumer after purchase, or obtaining advertising revenues through pay-per-click advertising, where the cybersquatter collects users’ information to make false purchases.

Cybersquatting is damaging to companies because it confuses consumers because they are unable to identify the real website for a brand. If a company is the victim of cybersquatting, consumers may refuse to purchase items online because they are unsure of the correct website. In addition, cybersquatting directs traffic to false sites, and when consumers purchase something from these sites or provide their credentials to the threat actor, they suffer a loss, and as a result, the consumer will no longer trust the brand, causing financial harm to the brand.

In addition, cybersquatting affects the reputation of a company when it is associated with fraudulent sites.

There are different types of cybersquatting, including domain warehousing, where cybersquatters register expired available domain names, then try to sell them back to the legitimate business. “Businesses should stay alert in renewing their domain registration to avoid such risks.”

Typo cybersquatting is when cybersquatters file domain names that are misspelled but similar to brand names to get consumers to click on the fake domain to launch phishing or malware campaigns.

Name jacking is when the names of celebrities or public figures are registered without the individual’s permission. The name jacker will use that individual’s name to impersonate them to make a profit or attempt to sell the domain at a high price.

Identity theft cybersquatting is when a cybersquatter files a domain that is a close variation to the real company’s domain (such as the name with a transposed letter or additional words attached to the company’s name) in an attempt to get consumers to click on the wrong domain and provide personal information or credentials to steal their identity or personal or financial information.

According to Sentinel One, there are several steps that can be taken in the event of a cybersquatting incident:

• Seek the services of legal experts to take legal action
• Make a complaint under the Uniform Domain Name Dispute Resolution Policy
• Send a cease-and-desist letter to the cybersquatter
• Buy the domain
• Use a domain monitoring company to track domain registrations and take down false domains
• Educate consumers

Cybersquatting incidents increased in 2024 and are expected to increase even more in 2025. It is crucial to understand how cybersquatters can damage your company so you can prepare and prevent your organization from becoming a victim.