Kitsap Peninsula Business Journal
10-10-2003
Major domain name scam hits
Network Solutions and eNom

A major security breach at Network Solutions has allowed some very valuable domain names to be transferred to eNom, and a new owner. ENom is one of the larger registrars in the fast growing domain name reseller market. The scam threatens the whole integrity of the domain name registration industry and the booming domain name reseller market.

The names in question have been pointing to the servers of a company called AIS, whose chairman is a world famous author and psychic with a long established track record of detailing future major earthquakes as well as acts of terrorism on the Internet in public forums such as Usenet, well before the events occur.

AIS runs over 200 developed content sites, many that specialize in conspiracy or anti-government news as well as paranormal related information besides the sites dedicated to domain names.

AIS also runs a famous eBook portal as well as a major eMovie portal and even an eMusic portal. Several of AIS’s content sites are domain name broker sites that are for the most part used to try to sell AIS’s own large portfolio of approximately 1000 domain names.

The Chairman of AIS was not directly involved in listing or selling these names, but when he was notified of the names being listed with his company he specifically asked his employees to make sure the names were registered to the person who listed them with the current registrar.

Domain names have been hijacked or stolen in the past, but there is usually a clear trail to the thief. Sex.com is one famous example where forged documents requesting an Ownership change was used by a person to take Sex.com from the rightful owner. Network Solutions was the only registrar at that time, and they fell victim to a conman.

Some of the domain names in question have been appraised at millions of dollars including Bill.com, You.com and Pharmacy.net. Bill.com is one example of a name that any major bank would want to run an on-line billing portal with. It has a tremendous value.

eNom is one of the new breed of registrars that is chipping away a large amount of the domain name registration business that Network Solutions once completely owned. Many so-called domain name resellers use eNom for bulk registrations. Some use eNom as a registrar when they buy domains from other owners. That is where the latest scam struck, eNom was used to transfer very valuable domain names from Network Solutions. There were no forged documents as in the Sex.com case, and one owner admits he willingly transferred the domain name to eNom to save money due to the high fees Network Solutions still charges for domain name registrations.

However, in this case the valuable domain names somehow ended up in the account of a person who was not the owner of the names at Network Solutions. That person is a John Connolly, he is still the current listed owner of Bill.com via a whois search of the eNom database. AIS demanded Connolly sign a notarized listing agreement before they tried to sell them. This is something no other Domain Name Brokers do.

For more information on this scam, visit www.domainnewsnet.com.