Is Expanded Internet Domain Name System A Gateway To Fraud?

Next month, the Internet Corporation for Assigned Names and Numbers (ICANN), the organization that oversees Internet domain names, is going to be dramatically expanding the domain name system. That worries the FTC. 

In a letter to ICANN, the FTC says that the proposed expansion could leave consumers more vulnerable to online fraud and undermine law enforcers' ability to track down online scammers.

The FTC is warning that rapid expansion of the number of generic top-level domain names (gTLDs) – the part of the domain name to the right of the dot, such as ".com," ".net" and ".org" – could create a "dramatically increased opportunity for consumer fraud," and make it easier for financial fraud artists to manipulate the system to avoid being detected by law enforcement authorities. The FTC is urging ICANN – before approving any new gTLD applications – to take additional steps to protect consumers, including starting with a pilot program to work out potential problems.
 
"A rapid, exponential expansion of gTLDs has the potential to magnify both the abuse of the domain name system and the corresponding challenges we encounter in tracking down Internet fraudsters," the FTC's letter states.
 
The increase in website names that could be registered in the new gTLDs would put "infinite opportunities" at the fingertips of scam artists, who take advantage of consumers through tactics such as using misspelled names to create copycat websites, the FTC's letter states.
 
"In short, the potential for consumer harm is great, and ICANN has the responsibility both to assess and mitigate these risks," the FTC concludes.