Anatomy Of A Domain Name Sales Scam.

My Top 3

Stumble It!

So the other day I get this email:

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From: Harrison [management@phreaker.net]
Hello,
We’ve have visited several online auctions. We are very interested in your domain name.
Just email me your price and we will consider it.
Of course, domain reselling is not a main direction of our business (we develop software). But domain aftermarket is hot now, so we are always interested in domain names.
Looking forward to do business with you.

Regards,
Anthony Harrison
COO
PDS Consulting
Wow I think to myself, I just registered this domain. This will turn a tidy profit for little actual work.
In the art of scamming, this is considered the introduction. While little more than a precursor to the bait, this helps to bring the mark/target (me) into the scam.
So I reply:

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The domain in question is currently listed for sale at Sedo
Per their user agreement
Please kindly read the topic: which I have cut and pasted here.
Sedo works hard to provide the Internet?s #1 domain marketplace. Soliciting domain sales outside of the Sedo marketplace for the purpose of circumventing fees that would otherwise be due to Sedo is strictly prohibited. This includes using user contact information obtained from Sedo or using any of Sedo’s services or features to offer to sell any listed domains outside of the Sedo marketplace or sending unsolicited commercial email offers to bidders that have bid on your domains, or any domains listed on the Sedo marketplace.

As you can clearly see, for all domains listed at Sedo that I haven’t already been in negotiation with a buyer before posting them for sale at Sedo’s site, offers and sales are required to be handled through Sedo
Please make an offer via the domain purchasing utilities at Sedo.
I?m certain you can understand my reluctance to offer anything that might constitute a business arrangement outside of Sedo for this domain.

Thank you,
Kevin Oedekoven
If this was a legitimate buyer, I would have expected negotiations to proceed through Sedo, or at the very least (for a complete novice) an email asking for details on Sedo and a request on how to proceed.
Instead of following my request (not a good thing if you’re really interested in making a sale) the response that follows doesn’t even follow simple bait and hook rules of a well articulated scam, rather its both the bait and the hook to this scheme.

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Kevin,

Can you accept 12000 USD?
Do you sell domain with a web site or just the name?
Domain without content is ok with me. Web site is not necessary.
Have you had your domain names evaluated in the past? I mean domain appraisals.
Without valuation we cannot be sure in the sale price. It’s very important for me in terms of reselling too.
But we must engage a valuation company with REAL manual service. So I will only accept valuations from independent sources I trust.
To avoid mistakes I asked domain experts about reputable appraisal companies.
Please check this posting from archive:
If, for example, the valuation comes higher you can adjust your asking price accordingly. It will be fair. I also hope you can give me 12% - 15% discount.
After you send me the valuation via email (usually it takes 1-2 days to obtain it) we’ll continue our negotiations.
What is your preferred payment method: Escrow.com, International wire transfer, PayPal.com or something else?
Hope we can come to an agreement fast.
Looking forward to your reply.
Wow, bait (12000 USD) and hook (go here to get an appraisal - which costs money) in one punch.
And bad form to boot.
Apparently this guy doesn’t understand my views on appraisals (see articles above this one.)
So I ask myself, Why would an appraisal need to be paid for? And why not use Sedo?
The only answer possible is that somehow the individual I’m dealing with likely gets a cut of the “appraisal” (note the quotes) proceeds.
And that’s exactly how this scam works.
After the appraisal is paid for, the “buyer” (again with the quotes) will at best quietly go away. Or he might scam you into getting appraisals on other domains in your portfolio before slipping back into the anonymity of the net.
So this is obviously a scam, how do I make this guy go away?

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Please direct all domain name related requests through Sedo.

Thank you,
Kevin
End of story.