The scam is a form of what is known as domain name slamming. A business is called and told that a third party is interested in – if not on the brink of – registering close variants of its name. A very short timescale is then offered for the business to pay to register these domain names with the agent before the third party is able to.
Following complaints the OFT challenged the agents to prove that there were third parties involved, and they were unable to do so.
More commonly the scam involves "Expiration Notices", which are sent by a registration agent to domain name owners, including the customers of other registrars, with a "deadline" for reply – the implication being that the domain name is about to expire and should be renewed.
According to John Vickers, OFT Chairman:
"Businesses should be wary of cold callers putting pressure on them to buy domain names in haste. We have warned a number of domain name registration agents about their selling practices and will continue to crack down on any misleading claims."
Lesley Cowley, Managing Director of Nominet UK, the national registry for all .uk domain names, added:
"Local businesses are particularly vulnerable to this kind of practice. We advise anyone who is approached in this way not to be coerced into accepting any unsolicited offers."
If businesses have doubts about the reliability of a domain name offer, the OFT recommends that they contact their ISP, their usual domain name registration agent, or their local Trading Standards Service, who can advise on a course of action.
If they think they may have been misled, businesses should complain to their local Trading Standards Service in the first instance, said the OFT.