By Andrew Allemann 1 Comment October 28, 2024

Company says shill bidding has decreased this year after implementing new strategies.

GoDaddy has published an in-depth look at what it is doing to combat auction fraud, and it’s worth exploring.

The company has faced criticism due to individuals using multiple bidder accounts to engage in fraudulent activities. The post effectively sums up the situation:

Unscrupulous participants would start with low bids and subsequently increase them to exorbitant amounts, discouraging legitimate buyers from entering the bidding war. When the highest bidder failed to make a payment, these participants would seek to obtain the domain as the second-highest bidder, thereby evading the inflated bid payment.

GoDaddy claims it has taken several measures to mitigate this type of behavior. One significant initiative was the launch of a new bidder ID verification system this year, with further efforts taking place behind the scenes.

The company discontinued seller auctions this year, which should help eliminate a major motive for what it refers to as “Sell/Solo” shill bidding, where a seller artificially raises the prices of their own listings. However, if there’s still a chance to acquire domains at lower prices, the motivation to inflate bids may persist, meaning the company must stay alert.

I would like to hear from customers of GoDaddy Auctions regarding any changes they’ve perceived in the frequency of non-paying bidders since August. Please leave a comment or reach out via email.

Categories: Domain Registrars Tags: godaddy auctions, shill bidding

October 28, 2024 at 5:04 pm

I’ve observed a decrease in the number of bots and instances of shilling. I’ve also seen fewer bids from Huge Domains.

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