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Domain name security threats
Independent researchers are not underestimating the impact on trademark and domain name abuses…and you?
Mazerov Research and Consulting recently released findings on DNS (domain name system) security, based on an independent survey of 456 individuals. Loss of Internet connectivity because of cybersquatters or hijacking translates into major revenue loss for a company. According to the Mazerov report, “a significant interruption has lasting impact on the company at about 88 minutes. That is, in just under 1.5 hours the company begins to suffer long-term damage.”
Furthermore, the report noted “a lack of understanding of the interplay of DNS security and how it relates to the connectivity of a company’s IT infrastructure and Internet availability.” If a company’s domain name is hijacked by the third party, not only is security comprised but businesses are at risk of major fiscal losses. Among those surveyed for the Mazerov report, one-in-eight said their company would likely go out of business, 30 percent said they would lose customers, and 39 percent said their long-term brand image would be damaged.
A domain name is hijacked when a third party modifies the registrant’s DNS information and has complete control over the domain. The hijacker substitutes the contract information for the legitimate administrative contact information in the Whois database. The hijacker becomes the “gaining” registrar of the DNS and the legitimate company the “losing” registrar. Since domain names are like real estate, a business might awake one morning to find an unauthorized For Sale sign planted outside the front door. A company’s website disappears and so does the traffic and ability to make e-commerce transactions.
The ICANN Security and Stability Advisory Committee (SSAC) report in 2006 reiterates the Mazerov survey findings: “Domain hijacking can disrupt or severely impact the business and operations of a registrant [company], including … denial and theft of electronic mail services, unauthorized disclosure of information through phishing web sites and traffic inspection (eavesdropping), and damage to the registrant’s reputation and brand through web site defacement.” The report also refers to collateral damage: “customers, business partners, consumers of service provided by the name holder and even parties wholly unrelated to the name holder.”
Medium and small companies often do not have the personnel or expertise to proactively and periodically manage trademark and domain protection. Keeping the Whois database up to date may be a low priority, but it actually puts the company at risk of IP theft.
VAYTON also recommend performing regular audits and validation of your domain name and trademark. Domain name abuse dilutes the strength of your trademark.