I was looking back through some posts over the years that we wrote relating to the SnapNames bidding Scandal and found this one which I wrote arising from a from November 2009 press release by Namejet.
Our post was entitled “Namejet Plays The “This Can’t Happen To Us” Card & That’s Troubling”.
We cautioned Namejet that “Shill bidding” could take many forms and it was the time to be more vigilant than less in light of the SnapNames bidding Scandal
Well I guess I was right in 2009.
Here is how our that post read back in 2009:
“Late today, we received a notice from NameJet.com, basically saying that what happened at Snapnames.com could not happen at NameJet.com
“””At NameJet we have the necessary security protocols in place to prevent this kind of incident.”””
“”We have security procedures and policies in place that monitor all activities to ensure that “shill” bidding does not occur. “”
All of the domain community hopes so.
However, it’s a little disconcerting to me that NameJet.com is taking the position; what happened there can never happen here.
I’m sure if you asked SnapNames.com a few months ago, they would have said the situation they find themselves in today could never happen to them, could never even be imagined.
An employee engaging in shill bidding is just one of the many games and scams that can victimize bidders in an auction. There are tons more.
I would hope that today’s news from Snapnames.com would cause everyone in the space to open their eyes to all the possibilities that exist and be vigilant to find issues, rather than close their eyes and say it can’t happen to us.
Here is the full announcement from NameJet.com:
“””Dear Valued NameJet Customer,
As you may have already heard, another company in our same line of business, SnapNames, was the victim of an internal security breach. We wanted to address any concerns you may have and assure you that at NameJet we have the necessary security protocols in place to prevent this kind of incident.
What Happened at SnapNames:
According to SnapNames, an employee set up an account on SnapNames under a false name. Under this account, the employee bid in SnapNames auctions. In many instances the bidding by this employee caused the ultimate auction winner to pay more for a name than had the employee not participated in the auction. In addition, on certain occasions, when the employee won an auction, the employee secretly arranged for a refund from SnapNames. This was in violation of SnapNames internal policy, and once discovered the company immediately closed the account in question and the employee was dismissed.
We commend SnapNames for taking quick and decisive action once it discovered its security breach.
NameJet has Strict Security to Prevent Anything Similar:
You should have full confidence nothing similar has occurred on NameJet. We have security procedures and policies in place that monitor all activities to ensure that “shill” bidding does not occur. Further, employees are strictly barred from bidding on auctions and NameJet has both internal and external monitoring to ensure all security procedures are enforced. These procedures were developed and are maintained by two of the world’s largest and most trusted registrars.
Thank you for your business and for your ongoing trust in NameJet.
If you have any questions regarding this issue, please contact us at email@example.com.