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The best defence against scam operators is knowledge and caution. The Office of Consumer and Business Affairs is concerned about the number of unscrupulous operators who take advantage of small businesses.
As long as you remain alert, you should be able to protect yourself from being taken for a ride. Many businesses receive demands for payment for advertising or services that have not been requested or provided. Often business people are told that advertising in a business register is necessary in order to meet government regulatory requirements. The practice is known as 'blowing' through the approach being made by telephone.
A number of schemes have ceased to operate after action taken by fair trading/consumer affairs authorities in Australia and overseas. However, scheme promoters continually change the names of their operations but the aim is the same - to receive payment for services that are either not provided or are valueless.
A list of known scams that have been operating in South Australia can be found on this site at http://www.ocba.sa.gov.au/consumeradvice/scams/index.html
Be aware and don't be caught out.
Domain names
What's in a domain name?
Domain names provide a system of easy-to-remember internet addresses, which can be translated by the Domain Name System (DNS) into the numeric addresses (Internet Protocol (IP) numbers) used by the network. For example a domain name will be similar to www.yourbusiness.com.au but its IP number or address will be similar to 204.96.78.4.
A domain name for a website can remain unchanged if the website is moved to a different host computer or server. However, an IP address will change if the server changes. This is similar to a business moving premises – the business name will stay the same but the street address will be different.
The business domain name
A domain name includes a core name plus a domain name level that often indicates where the domain name is registered. www.yourbusiness.com says that the files are located in the World Wide Web (www), it has the core name ‘your business' and is registered at the .com level. While www.yourbusiness.com looks similar, the .au indicates that the domain name is registered on the registry for Australian domains.
A domain name does not necessarily indicate where the website associated with that domain name is hosted, however an IP address can provide this information via an IP Whois search.
Same core name, but different domain names
Many businesses choose to register many different levels of their name in order to ensure that all versions lead to their website. For example, www.coffee-express.com.au is a different domain name to www.coffee-express.net.au, but if they are both registered by the same core business then all hits will arrive at the same destination.
It is important to note that a registered business name does not guarantee that the business name can be used for a domain name
Renewal dates for domain names
Domain name registrations for .au domain names are renewed every two years. The time for registration renewals for other types of domains may be different, for example, .com domain names are renewed in yearly increments.
It is important to note domain names are leased and not owned. If not renewed a domain name can be registered by another eligible party
For more information on the domain name industry
- www.auda.org.au
- www.ausregistry.com.au
- www.icann.org
- Department of Communications, Information Technology and the Arts has published a free booklet Staking your Claim on the Web - available online at www.dcita.gov.au/
Unsolicited letters offering domain name registrations are still catching out domain name holders, in particular small business operators.
These letters can range from completely bogus invoice-like letters attempting to fool the account payer, to letters that are offering a new domain name very similar to the business's existing one. The letters can result in the business being either the victim of a scam or the unwitting owner of a new domain name.
Some of the letters may also be offering other services such as website hosting or redirecting or email services.
How to avoid problems
Domain name holders and business operators can avoid problems associated with unsolicited letters by becoming familiar with the domain name renewal process, and setting in place some simple administrative practices:
- Do not assume that any renewal notice is from your original supplier. You may receive many such offers from operators competing for your business or scammers.
- Keep a good record of domain name registration details – including the name of the registrar and the renewal date. Domain name registrations for .au domains such as www.yourbusiness.com.au are renewed every two years, while .com domains are registered in yearly increments.
- Check all details on any invoice or letter. Is it the proper name of your website address? Is it .com or a net.au? The letter might be trying to sell you a new domain name or another type of service.
- To check that your domain name is registered or who your registrar is use a WHOIS search to check the details of a domain name. For .au domains go to www.ausregistry.com.au
For .com domains there are a number of searches e.g. www.betterwhois.com - Carefully check the rates and terms and conditions of the renewal notice and compare this with the current provider of your domain name licence.
Where to go if there are problems
If you feel that you have been misled contact the ACCC or our office.
To help protect against domain name scams complete the following and keep handy for everyone involved in the bill paying
My correct domain name/s is/are:
My domain name registrar/s or re-seller/s is/are:
My domain name renewal date/s is/are:
If the letter is not from your registrar you do not have to send money. If in doubt contact your registrar first
How to protect yourself
Forewarned is forearmed when it comes to dealing with those who try to take advantage of small business. The following guidelines should ‘weed out' the unscrupulous operators without adversely affecting the honest operator.Be cautious about agreeing to anything over the telephone.
You should
- never give out any information about your business unless you the know the purpose
- authorise all advertising in writing and keep records of who you spoke to originally to arrange any advertising
- keep clear records and cross-check all incoming invoices
- don't pay unless the company making the demand can produce a signed authorisation
- limit the number of staff authorised to place or pay invoices
- check documents which look like summonses or legal documents to ensure they're genuine
- never use birth dates for order numbers, as con artists will use them for other scams or pass the birth dates on to others who will.
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