Re: [registrars] Transfer Misc Question

["Tim Ruiz" <tim@godaddy.com>]

Go Daddy supports this idea. We've seen the exact fraud scenario you refer
to first.

Tim

 -------- Original Message --------
   Subject: [registrars] Transfer Misc Question
   From: "Michael D. Palage" <michael@palage.com>
   Date: Sat, November 30, 2002 9:40 am
   To: <registrars@dnso.org>

   Under the current policy a domain name is locked for 60 days after
   registration to allow the registrar to secure payment. However, there
   is no similar provision in the case of transfers. In more than one
   instance involving domain name hijacking/theft, I have seen a domain
   name get transferred through multiple registrars then deleted and
   re-registered in an attempt to launder a domain name within a couple
   of days. Why under the proposed policy is it not permissible for a
   registrar to lock a domain name on transfer since there is a payment
   which the registrar must verify for the one additional year that the
   gaining registrar is billed by the registry. In addition, by locking
   down a domain name after transfer it would limit the ability of bad
   guys to launder domain names through multiple registrars.

   I believe that several registrars have implemented a similar policy to
   cut down on fraud, and I was wondering why this mechanism not be
   incorporated into the transfer policy, at least on a voluntary basis.
   I am not requesting that registries modify their software to
   incorporate this safeguard. However, I believe registrars should not
   be prohibited from incorporating this safeguard voluntarily.

   Although this scenario at first blush might possibly qualify under the
   fraud and payment exception of Point 16, in the case of domain name
   theft/hi-jacking the domain name is generally in and out of a
   registrar's system within a day or two. This brief period of time is
   not adequate enough for a registrar to identify a possible problem and
   halt the transfer. What I am basically proposing is that registrars be
   permitted to incorporate a "cool down" period after a transfer to
   guarantee payment and ensure that there is no fraud.

   One would have to admit that if it reasonable for a domain name
   registrant to stick with one registrar for 60 days after registering a
   domain name, it is not unreasonable to ask that registrant to stick
   with a domain name registrar for brief period of time to identify any
   potential illegal activity. Moreover, would people not find it highly
   irregular for a domain name registrant wanting to transfer-out after
   just transferring in. Obviously this voluntary policy would not
   prohibit registrars from remedying transfers that were made in error
   or illegally. In fact this transfer's cool down period is design to
   make such remedial actions much more easier as the number of
   registrars involved in limited to two.

   Any thoughts?

   Mike