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  • News blog
  • 22 January 2025
  • European Innovation Council and SMEs Executive Agency
  • 10 min read

The Hidden Dangers of Unprotected Domain Names

In today's digital age, a company's most valuable assets exist as domain names—key to brand identity like trademarks. Yet, many fall prey to unprotected domains, risking hijacking and data theft. 

Risks of Not Protecting Domain Names

In the present digital age, a company's most valuable assets are not locked in a vault – rather they exist as strings of characters on a screen. Domain names, the internet's signposts, are now as crucial to a brand's identity as its trademarks and patents. Yet, many individuals and businesses fall prey to the perils of unprotected domain names, exposing them to risks. Case in point is the infamous panix.com incident of January 2005 which took the world by storm. That year, the New York Internet service provider, Public Access Networks Corporation (PANIX), fell victim to domain hijacking and data theft. 

From 2005 to the present, conversations around internet security have remained at the forefront of policymakers, security agencies, and stakeholders. This article joins in this discourse by considering the need to safeguard domain names and the risks of failing to protect them.

Meaning and Nature of Domain Names 

A domain name is a human-readable address that is used to access websites on the internet. It serves as a unique identifier for a specific location on the web. Simply put, it is the string of words a user types into a browser to reach a website. Domain names are managed by domain registries, which delegate to the Registrar the duty of registering and reserving domain names. Globally, there are over 300 million registered domain names. Domain names typically consist of two or three parts, with a dot separating each part. The last part of the domain name is called the top-level domain (TLD), which may be generic TLDs as in .com, .org, .net, or country-specific TLDs like ‘.uk’ for the United Kingdom, ‘.ng’ for Nigeria and ‘.de’ for Germany. 

However, in today’s interconnected world, a domain name is more than just an address on the internet; it is an asset that has become a critical component of a brand's identity, customer trust, and online presence. The digital revolution has ushered in a new era where a brand’s online presence holds immense value. Consequently, it has become imperative for brands to safeguard their online identity and a brand’s online identity is only as secure as its domain name.

Risks of Not Protecting Domain Names

A domain name is a valuable asset, and failing to protect this asset exposes brands to numerous risks with far-reaching consequences. The dangers of neglecting domain security are substantial, and some of these risks are discussed below.

  1. Domain Hijacking

Registering a domain name is essentially staking a claim on a piece of online real estate. Like physical property, this online territory needs protection from squatters and thieves. One of the most significant risks of not protecting a domain name is domain hijacking.

Domain hijacking refers to the wrongful taking of control of a domain name from the rightful name holder. Cyber hackers do this by gaining access to a domain account, changing the settings, or transferring the domain to another registrar. It is a common threat, often leading to dire consequences such as website downtime, loss of online identity, and reputational damage.

For instance, in 2020, Twitter (now called X platform) fell victim to a domain hijacking incident when attackers gained control of the company's domain name through social engineering techniques. The perpetrators manipulated internal tools and systems to take control of Twitter's domain and redirect visitors to a malicious website, leading to one of the most high-profile phishing scams in recent history.

  1. Cyber Squatting

Cybersquatting, also known as domain squatting, is a malicious practice involving the unauthorised registration and use of internet domain names that are identical or strikingly similar to trademarks, service marks, company names, or personal names. This practice is carried out with the malicious intent of profiting from the goodwill of the actual trademark owner, typically through financial gain, delivery of malware payloads, or stealing intellectual property. It is likened to buying a domain name similar to a well-known brand, with the hope of selling it to the brand at an inflated price or profiting from the traffic intended for the legitimate brand.

One of the earliest and most well-known cybersquatting cases is the domain "whitehouse.com." Due to the more common ".com" domain, users often mistakenly enter "whitehouse.com" instead of "whitehouse.gov," thereby diverting people away from the legitimate site. The explicit content on "whitehouse.com" makes it one of the most egregious examples of domain name misuse.

Cyber squatters often exploit unprotected domain names by registering variations of popular brands, leading to customer turnover, identity theft, data loss, damage to brand image, and financial loss.

  1. Phishing Attacks

The threat of phishing scams is more prevalent than ever. Unprotected domains are a goldmine and vulnerable entry point for cybercriminals who use them to create fraudulent websites that are designed to deceive unsuspecting victims into divulging sensitive information. But what exactly is phishing, and how do these scammers operate?

Phishing is a type of cybercrime where fraudsters pose as legitimate entities, such as banks, online retailers, or social media platforms, to trick victims into revealing sensitive information like login credentials, credit card numbers, or personal identifiable information. This can be done through email, text, or even direct social media messages. The goal is to create a sense of urgency, fear, or curiosity, prompting the victim to take action.

  1. SEO Impact

Failing to protect a domain name can have dire consequences on search engine optimization (SEO), which is crucial for maintaining online visibility and attracting web traffic.

In instances of domain hijacking or cybersquatting, the newly unauthorised owner can manipulate content or reroute traffic to alternative sites, frequently with malicious intent. Search engines may subsequently identify such websites as untrustworthy, resulting in an extended period of diminished search engine rankings. This circumstance can pose challenges in restoring online visibility, even after regaining domain control.

To avoid these catastrophic consequences, it's essential to prioritise domain name protection. 

The Importance of Domain Name Protection:

Examples from the Real-World   

In 1994, Joshua Quittner, an author for Wired magazine, bought mcdonalds.com for a story about the value of domain names. No one at McDonald's seemed to have any interest in being online. In the article, he invited readers to email their suggestions for using the domain to ronaldatmcdonalds [dot] com (ronald[at]mcdonalds[dot]com). To return the domain to McDonald's, the author persuaded the company to make a charitable donation to any cause of his choice.

Similarly, 2003, Canadian student Mike Rowe registered the domain name MikeRoweSoft.com for his part-time web design business, playing on the phonetic similarity to "Microsoft." Microsoft viewed this as trademark infringement and demanded that Rowe relinquish the domain. Initially, Microsoft offered to reimburse Rowe $10 for the cost of the domain registration, but Rowe countered with a request for $10,000. Microsoft rejected this offer, accusing Rowe of cybersquatting and sending him a cease-and-desist letter of demand.

In January 2004, the dispute was resolved out of court. Microsoft gained control of the domain, agreeing to cover all of Rowe's expenses, including those for setting up and redirecting traffic to a new site, MikeRoweforums.com, which is now defunct.

Another example is the Panix.com incident of 2005. It involved a case where the domain name of New York Internet provider Public Access Networks Corporation was hijacked, leaving customers without e-mail and Web access for a day and a half. This also led to the legitimate addresses for panix.com timing out of most people's nameservers and being replaced with the hijacker's records. The incident raised questions about the role of registrars in ensuring the security and integrity of domain names. 

The New York Times also experienced a domain hijacking incident in 2013 when cybercriminals gained unauthorised access to the registrar account and altered the domain's DNS settings. This led to widespread service disruption and underscored the serious repercussions of such breaches.

In 2005, the Hushmail service, operated by Hush Communications, experienced a security breach. The incident unfolded when an unauthorised individual manipulated the Domain Name System (DNS) configuration of Hushmail. This unauthorised party successfully altered the administrative email contact information in Hush's registration record. Subsequently, using the modified administrative contact email, the attacker initiated a password reset request for the Hush Communications account through Network Solutions, Inc. With access to the Hush Communications account secured, the attacker changed the password, allowing them to alter the DNS configuration. Specifically, the attacker redirected the domain A record to their server. As a result, visitors attempting to access Hushmail were redirected to a defaced home page, intentionally designed to embarrass Hush Communications and gain notoriety for the attacker.

Lastly, the Internet Corporation for Assigned Names and Numbers (ICANN) encountered a significant security breach in 2008 when hackers gained unauthorised access to ICANN's domain registration account at Register.com. The hackers manipulated the Domain Name System (DNS) configurations of multiple domains, including icann.net, iana-servers.com, icann.com, internetassignednumbersauthority.com, and iana.com. As a result of these alterations, visitor traffic intended for these domains was redirected to a defacement website hosted on free web hosting accounts provided by Atspace.com

These incidents underscore the critical need for robust security measures within the domain registration process and highlight the ongoing challenges in safeguarding against sophisticated cyber threats targeting prominent organisations like ICANN.

Solutions and Best Practices

There are several ways to protect domain names, and a few of them are discussed below.

A. Opt for a Trusted Domain or Hosting Service

It is crucial to avoid domain providers offering free domains or charging unusually low rates. While this may seem cost-effective, providers often compromise on essential security measures and utilise inexpensive hardware to store website and domain data. Consequently, there's an increased risk of sensitive information leakage or domain hijacking. Instead, a well-established domain provider with a national reputation is recommended to provide robust protection for the domain against potential hijackers. 

B. Strong Password and Two-Factor Authentication

A strong password is the first line of defence against cyber threats. It should be a complex combination of characters, numbers, and symbols, making it difficult for hackers to crack. A good password should be 12 characters long and include uppercase and lowercase letters, numbers, and special characters. Avoid using easily guessable information such as birthdates, names, or common words.

Furthermore, given the sensitivity of domain and email accounts, it is essential to use unique passwords for these accounts, distinct from those used elsewhere on the internet. Additionally, consider implementing two-factor authentication for both domain and email accounts. With various two-factor authentication methods available, this technology can be seamlessly integrated into security measures, even for large user populations.

Enabling two-factor authentication significantly increases the challenge of unauthorized access to these accounts, as it requires not only knowledge of the password but also possession of the security code sent to the registered email.

C. Activate Domain Privacy Protection

A common avenue for hackers to access information about a domain and its ownership is through the WHOIS directory, a publicly accessible database containing domain ownership details. Originally intended to facilitate legitimate domain transactions and advertising placement, the WHOIS directory has become a tool for hackers seeking to target domain owners by uncovering their personal information, including names and email addresses. Domain owners can safeguard their privacy by investing a nominal fee in Domain Privacy Protection, a service offered by domain providers. This feature ensures that your personal details remain concealed from public view in the WHOIS directory.

To enhance a domain's security, it is essential to review the domain account and ensure that Domain Privacy Protection is enabled. By taking this proactive step, information on such a domain would be prevented from exposure to potential threats when searched for in the WHOIS database.

Conclusion

The risks of failing to protect domain names can be immense, from lost revenue and damaged reputation to legal battles and intellectual property theft. Therefore, protecting your domain name, especially as a brand, is a commercial imperative. Cybercriminals increasingly exploit vulnerabilities in domain name systems, leaving businesses vulnerable to phishing scams, data breaches, and intellectual property theft. Organisations must prioritise domain name protection, investing in robust security measures and monitoring systems to mitigate these risks.

 

Details

Publication date
22 January 2025
Author
European Innovation Council and SMEs Executive Agency