These companies send out misleading renewal notices to the admin contact via e-mail and postal mail. The nature of the notices sent was such that a large number of people were tricked into transferring their domains to the new company.
This - and other forms of domain hijacking - can essentially be prevented by locking domains.
Locking a domain - normally a feature of .COM .NET .ORG .INFO and .BIZ extensions - effectively prevents it from being transferred to another registrar. Anyone requesting a transfer of a locked domain will have it denied immediately.
In short, locking a domain means that the chance of it being hijacked or transferred accidentally are greatly reduced as, in order to transfer the domain successfully, it's necessary to go through the process of unlocking the domain and approving the transfer - not really an act that you can do accidentally.
The only downside of domain locking is simply that in order to make amends to the domain record - ie. change of nameserver, contact details, etc - you must first unlock the domain (and remember to lock it afterwards).
Locked domains may show REGISTRAR-LOCK in the WHOIS record.
Methods of locking will vary from registrar to registrar, with many not offering the service as yet. As a BulkRegister user, it was necessary to upgrade my account in order to be able to use domain locking but, with just over 500 domains, it was worth the $80 or so.
If in doubt, check with your registrar, see if domain locking is available & if so, how it is used. If it's not available yet, it won't hurt to ask if they'll be adding it in the future.
I was never one for writing essays Pendanticist - how'd I do? ;)
R.
After a couple of attempts to hijack my highest-$$$ domain by a firm initiating false transfer proceedings, I moved to my current registrar primarily because they had locking available.
>always lock domains.
Yep, if you have a domain/site that might be attractive to others it's probably worthwhile to go through the hassle of changing registrars in order to lock them down.
Good pricing structures, ease of registration, ease of updates - especially bulk changes such as nameservers - and customer service are all important considerations, although for obvious reasons I can see why people might think twice about chosing a Registrar who doesn't offer locking, as opposed to one who does.
For those with 'mission critical' domains though, it's certainly understandable to err on the side of caution! Unexpected loss of a domain - whether registered to you or a Client - is a stressful and costly (both financially and in terms of time) experience.
Lock 'em if you can & make sure you renew 'em in plenty of time!
R.