GoDaddy and Paypal Horror Story
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Recent events have made it clear both PayPal and GoDaddy protect domain fraud, identity theft, and scam artists. PayPal and GoDaddy are huge in their respective market segments and domainers have used both for years. Domainers trust their domain sales and transfers with these two websites, but I do not think that can continue much longer. This is because, recently, scammers have been going to forums and starting sales and purchases of 4 letter .com (or LLLL.com) domain names.
The setup.
First, the scammer creates a new username at a forum or somehow hacks into an existing username and mimics another user. Next, the scammer sends private messages (PM) to users who have posted their domains for sale and offers to buy them. Then, a price is reached by both the seller and scammer. Finally, the scammer sends payment.
Currently, these scam artists only pay via PayPal. They only buy names registered at GoDaddy. Of course, this is for a reason.
The scam.
With an agreement reached, the scammer sends payment using a STOLEN or HACKED PayPal account. Believe this, it can happen to you. Let me just say, DO NOT click on ANY link in an email from Paypal. Once the domain name seller receives/confirms payment via PayPal, they transfer the domain (which is registered at GoDaddy, remember) to the scammer.
To complete the domain transfer, the buyer (scammer) must have the following information: Name, Address, City/State (US)/Postal Code, Country, Phone, and Email matching the GoDaddy account where the domains will be transferred. Usually, the scammer manipulates the GoDaddy account information to match the stolen Paypal account. This is to prevent suspicion from GoDaddy and Paypal.
So, the scammer sends payment using someone else’s money (through a stolen Paypal account), the seller checks their account and sees the funds. Then, the seller goes to their GoDaddy account and transfers the domain to the GoDaddy account of the scammers. Once the transfer has been completed, the seller sends a confirmation (e.g. email, PM) to the scammer saying everything is done.
The outcome.
The seller is happy and moves on to other things. Meanwhile, the scammer, within minutes of the confirmed domain transfer, initiates a chargeback on the stolen PayPal account. Supposedly, a chargeback triggers when an unauthorized purchase or fraudulent activity occurrs. PayPal immediately reverses the transaction, without question. After chargeback completes, the funds in the sellers PayPal account reduce by the chargeback amount. So, now, the scammer has the seller’s domains. The seller has lost both the money for the domain and the domain itself.
The Paypal ordeal.
This is where both GoDaddy and PayPal facilitate and condone the scammer’s getaway.
First, the seller calls PayPal and asks, “What happened to my money?”
PayPal’s response is, “Sir, we are sorry, but the funds you received for the following transaction were fraudulently acquired. The TRUE owner of the account denies initiating the transaction.”
Then, the seller asks, “Well, do I get my money back? Or, when do I get my domains back?”
PayPal responds with, “Sir, since domains are an INTANGIBLE item, they do not comply with the Seller Protection Agreement. Therefore, they are not covered by PayPal. Only TANGIBLE items are protected against chargebacks. We recommend you contact your registrar to see if they can help you.”
The seller says, “Ok, so the TRUE owner of the PayPal account gets his money back, the scammer gets my domain, and I am left with nothing! I don’t understand this! Can you at least tell me who the scammer is so I can contact them?”
PayPal responds, “Unfortunately, there is nothing we can do for you on our our end. Any information we find can only be provided by SUBPEONA. Your only recourse is to take legal action against the perpetrator.”
The seller, infuriated, says something along the lines of, “This is unethical. You will hear from my attorney. I will never use you again,” and hangs up.
The Paypal aftermath.
PayPal is step one in the scammer’s getaway. PayPal conceals the identity of the scammer despite easily accessing their location via a reverse IP lookup, to see who started the transaction. They are protecting the TRUE owner, who has a PayPal account, fine. But, they are also protecting the scammer, who does not have a PayPal account at the expense of the seller who DOES have a PayPal account.
The seller is the one paying the 3.2% fees. But why are they? Where are those fees going if they do not protect you. If the transaction is for intangible goods, why are you FORCED to pay their fees? PayPal wants you to pay the fee, but they do not want to provide you the protection.
The GoDaddy aftermath.
Having finished with PayPal and seeing how they are assisting the scam artist, next is GoDaddy. By now the seller is agitated but still feels their is hope with GoDaddy. The seller checks the domain information for the stolen domains. They see they are still registered to the scammer and remain in the GoDaddy system.
Surely, it would is easy to reverse the transfer. It should not be that hard. You have a valid GoDaddy email with all the other contact info used to transfer the domains…WRONG! You contact GoDaddy to see what they will do. After explaining your situation to them, they respond with, “Unfortunately, GoDaddy does not get interfere in third party disputes. This is why we have TDNAM, to let you sell your domains safely.”
TDNAM is an online auction site OWNED by GoDaddy. Here, the seller pays a yearly fee of $6.95 and Escrow fees.
Now, the seller says, “WHAT??! ?!? The domain was stolen from me and is in your system. They were just transferred hours ago yet I can’t get them back?”
GoDaddy, “Sir, I’m sorry, but since these domains were not transferred using TDNAM, we have no responsibility to the buyer or the seller. After the account change is initiated, and once accepted, we are not involved.”
You go back and forth with the GoDaddy representative but get nowhere. There is nothing you can do. You just got SCAMMED.
Your options.
The only way to recover your domain is through legal action or by reporting the problem to ICAAN.org. Or, by the grace of God, you find the scammer and harass them to the point of forfeiture. Other than that, you are out of luck and there is nothing you can do.
That is how I and countless others have been scammed. All we can do is sit here licking our wounds. The scammers cover every angle. They choose GoDaddy and PayPal because they do not pursue or amend fraudulent transfers and chargebacks. Your next step is to file a class action lawsuit against PayPal and GoDaddy . All I ask is anyone who has had this occur, please email me at benvardag@aol.com. I am compiling a list of victims and their situations.
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Comments
Dealing with the scum of PayPal has ended for this guy.
These fktards after I had them on the phone to supervisor
dealing with Ebay, scum fktards the 2nd, said I need to use
my actual bank account numbers to be able to continue using
Ebay for purchases made.
I went over the $10,000 limit, which started this.
I argued I’m not giving you access to it.
They said you no longer can play.
So, I give in.
Soon as a buy was completed shortly after, I then see right on
the screen my bank account number instead of the visa numbers.
I have the guys name who set it up at PayPal.
If I ever connect a face to it, I will coldly walk up and put him in ICU.
I closed that account that day. Not easy to do. This requires sitting in front
of Wellsfargo agent.
Fuck You PayPal.
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