Namecheap poaches 20,000 domains from Go Daddy

A protest promo launched after Go Daddy CEO Bob Parsons came under fire for shooting an elephant appears to have netted Namecheap about 20,000 domain name transfers.
The company tweeted from its official account last night: “Thank you Namecheap customers, new and old! We have raised $20,433 to savetheelephants.org. We appreciate your support!”
Given Namecheap had offered to donate $1 for every domain transferred using a special $4.99 coupon code, it looks like it received 20,433 transfers over the last week.
Parsons won’t lose any sleep over this. Go Daddy’s domains under management ticks up by the same amount every five hours.
It may be a more significant amount for Namecheap, which says it has over a million domains under its belt.
UPDATE: As Adam Strong notes in the comments, the 20,000 domains did not necessarily all come from Go Daddy, as the offer was open to anybody.

NetSol to alert cops over domain hijacking

Network Solutions intends to “notify the proper authorities” after a high-profile customer had his account hijacked over the weekend.
Stephen Toulouse, head of policy and enforcement for Microsoft’s Xbox LIVE, lost access to stepto.com, including his web site and email, for several hours yesterday, after a disgruntled teenaged gamer persuaded a member of NetSol’s support staff to hand over the account.
In a statement published on its blog, the domain name registrar said it was an “isolated incident directed at a specific customer account”, adding:

We maintain a well developed processes to ensure that Social Engineering attempts or any identified security concerns are immediately alerted to a Supervisor, who will expedite the investigation, usually with the help of the Network Solutions Security team. In this case, the procedure was not followed, and we apologize for any trouble caused to our customer.
Our Security team continues to investigate this matter. Additionally, because we take this matter very seriously, we intend to notify the proper authorities with the evidence that we have gathered, so that they may investigate the person(s) responsible for the fraud.

According to a new YouTube video released by the person claiming responsibility for the attack, “Predator”, he’s 15. He blamed Toulouse for his frequent Xbox LIVE bannings.
While he said he perpetrated the attack to highlight insecurities in Xbox LIVE, he also offered to hijack other gamers’ accounts for up to $250.
Comments posted in response to his first post-attack video claim to reveal his true identity, but of course comments on YouTube are not what you’d call reliable evidence.
The video itself does reveal a fair bit of information, however, so I can’t imagine tracking him down will be too difficult, especially if Microsoft has his parents’ credit card number on file.
His YouTube channel also has videos of him operating a botnet. That’s a whole lot more serious.

Xbox security chief gets domain hijacked

The head of Xbox Live policy and enforcement at Microsoft has had his domain name compromised by a disgruntled gamer using a social engineering attack on Network Solutions
Stephen Toulouse, who goes by the screen name “Stepto” and has the domain stepto.com, seems to have also lost his email, hosting and, as a result, his Xbox Live account.
He tweeted earlier today: “Sigh. please be warned. Network solutions has apparently transferred control of Stepto.com to an attacker and will not let me recover it.”
Somebody claiming to be the attacker has uploaded a video to YouTube showing him clicking around Toulouse’s Xbox account, whilst breathlessly describing how he “socialed his hosting company”.
It’s a bit embarrassing for Toulouse. He was head of communications for Microsoft Security Response Center for many years, handling comms during worm outbreaks such as Blaster and Slammer.
Now at Xbox Live, he is, as the attacker put it, “the guy who’s supposed to be keeping us safe”.
But it’s probably going to be much more embarrassing for Network Solutions. When the tech press gets on the story tomorrow, difficult questions about NSI’s security procedures will no doubt be asked.
Toulouse has already made a few pointed remarks about the company on his Twitter feed today.
Social engineering attacks against domain name registrars exploit human, rather than technological, vulnerabilities, involving calling up tech support and trying to convince them you are your victim.
In this case, hijacking the domain seems to have been a means to control Toulouse’s email account, enabling the attacker to reset his Xbox Live password and take over his “gamer tag”.
The same technique was used to compromise the Chinese portal Baidu.com, that time via Register.com, in late 2009. That resulted in a lawsuit, now settled.
The attacker, calling himself Predator, was apparently annoyed that Toulouse had “console banned” him 35 times, whatever that means.
He seems to have left a fair bit of evidence in his wake, and he appears to be North American, so I expect he’ll be quite easy to track down.
Predator’s video, which shows the immediate aftermath of the attack, is embedded below. It may not be entirely safe for work, due to some casually racist language.
UPDATE (April 5): The video has been removed due to a “violation of YouTube’s policy on depiction of harmful activities”. I snagged a copy before it went, so if anybody is desperate to see it, let me know.

Go Daddy CEO catches flak for “elephant snuff film”

Bob Parsons has come in for criticism for a recent video diary in which he headed to Zimbabwe to hunt elephant.
A petition launched yesterday at Change.org, entitled “Tell Go Daddy’s CEO: Real Men Don’t Kill Elephants” has attracted over 400 signatures.
The petition describes Parsons’ video as “basically a gruesome, 4-minute elephant snuff film”.
You can watch it here, if you can stomach the AC/DC soundtrack, photos of Parsons grinning over the corpse, and the scene where dozens of Zimbabweans (many wearing Go Daddy baseball caps) greedily tear up the elephant’s carcass.
The justification presented in the video is that “problem” elephants have been destroying crops, putting farmers’ livelihoods at risk.
The petitioner says there are better, more humane ways of dealing with the problem.
I expect this kind of PR plays well to the NASCAR crowd. To desk-bound, liberal-elite media, city-boy vegetarians such as myself, less so.

Go Daddy employee class action dismissed

A class action lawsuit alleging that Go Daddy committed “wage theft”, filed by a disgruntled former call center worker, has been dismissed by an Arizona court.
While the plaintiffs have been given leave to amend their complaint, they’ve parted ways with their lawyers after a disagreement, which suggests the case may be on shaky ground.
I reported on the filing of the suit for The Register last May, and followed it up with a tangential blog post here.
The lead plaintiff, Toby Harris, claims he was fired after just a couple of months as a Go Daddy sales/support call center guy after he questioned why some of his commissions had been withheld.
His manager had apparently rated his work below a certain performance threshold, meaning he lost out on over $1,300 of bonuses in his first month. Harris said this was arbitrary and unfair.
He was then fired after, according to his termination letter, breaking security protocol by failing to sufficiently validate a customer’s identity. Harris said he was fired because he was a “whistleblower”.
Four other former Go Daddy employees are named plaintiffs in the class action, which alleges that by treating commissions as discretionary bonuses, Go Daddy has avoided paying its call center staff legally owed overtime wages.
But a few weeks ago, the judge in the District Court where the case is being heard dismissed the complaint (pdf) on the grounds that it did not assert enough facts to support its claims.
While the judge gave plaintiffs the opportunity to re-file the complaint, their lawyers evidently decided it was not worth it. They withdrew from the case.
Judging by a court filing the lawyers made last week (pdf), and several claims made by Harris on the gripe site NoDaddy.com, it was not an amicable split. Harris now seems to be looking for replacement attorneys to file an amended complaint before time runs out.
The thread on the NoDaddy forum devoted to the class action is extraordinary. Started in May last year, it’s grown to over 1,600 posts, the majority of which are rants written by Harris, often addressing Go Daddy CEO Bob Parsons directly and in personal terms.

Demand Media says Google change no big deal, yet

Demand Media has said that recent changes to Google’s search engine algorithm does not appear to have had a material impact on its business.
Google said yesterday that it has changed its code to demote “sites which are low-value add for users, copy content from other websites or sites that are just not very useful”.
This was widely interpreted as being designed to hit “content farms”, which make up one of Demand’s major revenue streams. The company also owns number two domain registrar eNom.
In a blog post, published less than four hours after Google announced the change, Demand executive vice president Larry Fitzgibbon wrote:

As might be expected, a content library as diverse as ours saw some content go up and some go down in Google search results… It’s impossible to speculate how these or any changes made by Google impact any online business in the long term – but at this point in time, we haven’t seen a material net impact on our Content & Media business.

It remains to be seen if the changes will have any impact on traffic and revenue at Demand, which recently executed an IPO, but Fitzgibbon played down the company’s focus on search traffic.
Demand also measures success based on metrics such as direct navigation, repeat visits and traffic from social media, he wrote.

DomainTools doubles prices, relaunches site

Whois specialist DomainTools has revamped its web site and raised the price of its services.
The price increase is quite substantial. The cheapest paid-for tier appears to be the $30-a-month Standard Membership, a 100% increase on the old $15 basic package.
Existing members have been grandfathered in at their current rates. DomainTools said that it’s the first price increase in five years.
It does appear that subscribers may get more bang for their buck under the new tiers. At least, my subscription appears to be buying me more services than it was before the relaunch.
But that may be because I was never entirely clear what I was paying for. The confusing old “unit”-based pricing has gone, and the new site is a lot clearer about what you get for the money.
Many of the other changes appear to be cosmetic. The site does look a bit slicker than before, while retaining its familiar look-and-feel.
The company also appears to have sorted out its dispute with Go Daddy, which recently started blocking Whois aggregators including DomainTools.
A few test look-ups I did for domains registered at Go Daddy returned full Whois results, not the stubs it was delivering following the block.
Given that registrars are allowed to charge $10,000 a year for access to bulk Whois records, I’m tempted to draw a connection between the Go Daddy situation and the price increase, but I have no hard information to support that conclusion.
UPDATE: I’ve heard from DomainTools that the Go Daddy situation has not yet been resolved.
DomainTools subscribers currently see full Whois records when they search for domains registered at Go Daddy. In order to throttle the vast majority of the traffic the site sends to Go Daddy’s servers, non-subscribers are still receiving incomplete data.
The dispute is evidently more complex than a simple $10k shakedown.

ICANN terminates another registrar

Another tiny domain name registrar has been given its marching orders by ICANN.
Best Bulk Register, which looks to have only a few hundred domains under management, will be shut down March 4, according to a letter (pdf) from ICANN’s compliance department.
The company had failed to pay over $10,000 in fees, and was not providing Whois services as required by the Registrar Accreditation Agreement, according to ICANN.
The registrar’s web site does not currently appear to resolve.
Best Bulk has until tomorrow to pick a registrar to take over its domains, or ICANN will pick one for it.

Gratuitous Go Daddy girl chest shot

I know, I know, I’m an utter hypocrite.
Complaining about the journalistic standards of The Sun in the morning and posting a photo that’s little better than a Page 3 shot in the evening.
I do so only in the spirit of crowd-sourced investigative journalism. And traffic, obviously.

In case you’re wondering, it’s the latest in the series of teaser shots Go Daddy has been releasing ahead of its Super Bowl 2011 commercial.
Note the strategic positioning of “.CO” on the T-shirt.
We’re supposed to start guessing who it is now.
Knock yourselves out.

.XXX demands approval in Brussels

ICM Registry has called on ICANN to quickly give final approval to its .xxx top-level domain contract after its meeting with governments next month.
Company president Stuart Lawley, in a letter to ICANN (pdf), said ICM has “invested extraordinary resources” in its TLD proposal and has waited almost seven years to get into the DNS root.
Its hopes of getting the nod from ICANN’s board of directors in Cartagena last month were dashed, when it was decided that a final consultation with the Governmental Advisory Committee was required.
That consultation is set to take place in Brussels at the end of February (although ICANN’s announcement of the meeting last Friday conspicuously made no mention of .xxx).
Lawley writes:

ICM Registry urges the ICANN Board to fulfill its explicit commitments to ICM Registry and to the ICANN community, and to uphold the integrity of the ICANN process by conducting and completing its consultations with the GAC
…
Neither ICM Registry nor the ICANN community can be expected to stand by while ICANN allows yet another self-imposed deadline on this matter to come and go without a plausible explanation.

The letter notes that it’s almost a year since ICANN’s Independent Review Panel told the organization that, despite its protestations to the contrary, .xxx had already been approved.
Lawley tells me ICM is spending, on average, $100,000 a month to keep the company ticking over. He believes that the proposed registry contract has dealt with all of the GAC’s concerns.
The one concern it will never be able to avoid, of course, is that .xxx is for porn, and there are plenty of governments (be they Middle Eastern theocracies, communist Asian states or conservative Western democracies) opposed to porn in principle.
The GAC said in an official Communique in 2006 that “several members of the GAC are emphatically opposed from a public policy perspective to the introduction of a .xxx sTLD.”
As far as I can tell, that’s pretty much the only major stumbling block remaining before ICM can sign a registry contract.
UK GAC rep Mark Carvell told me yesterday that the GAC believes the 2006 statement constitutes “advice” that ICANN is duty-bound to take into account, even though it was not a consensus GAC position.
In my opinion, ICANN has no choice but to disregard this advice.
If we suddenly start living in a world where the public policies of a handful of backward nations are sufficient to veto a TLD, then we may as well pack up the whole internet and move it to Saudi Arabia or Utah.