GoDaddy auctions: A “fundamentally flawed” domain bidding platform

Scammers continue to abuse the GoDaddy auctions system by taking advantage of its flawed policies on non-paying bidders.

Tens of thousands of dollars in revenue  are effectively lost daily, as an apparently organized and persistent ring of unscrupulous bidders gang up on legitimate GoDaddy bidders.

Time and again, the non-paying winner and their accomplishes “force” GoDaddy to assign the domain at a much, much lower price. The cybercriminals have found a process that they exploit at the expense of Joe Domainer, who expects equal bidding chances at a public auction.

Industry tracker,, continues to track the winning auctions and their reported adjustment payouts. Said Michael Sumner of NameBio in a recent post:

“GoDaddy would be doing themselves a huge favor if they would acknowledge that the rollback system is fundamentally flawed, and stop being content with band aids like manual policing.”

The latest sample of rolled back auctions (winning amount vs. actual amount that was paid) is quite astonishing to look at: from $12,500 to $10. from $7,200 to $515. from $67,666 to $10. from $12,150 to $22. from $5,800 to $10. from $4,000 to $35. from $30,278 to $25. from $35,005 to $5,300. from $21,350 to $120.

Why GoDaddy does not establish a policy that links accounts to credit cards is beyond our understanding.

Serious domain marketplaces such as SAV and Namecheap have established the pre-authorization of credit cards, ensuring the integrity of their platforms.

It’s a shame that GoDaddy won’t do anything to resolve this once and for all.

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