Writing for Ars Technica, Sarah Gallagher explained that many companies are fearful of the impacts of the incoming generic top-level domain name regime.
They believe that the introduction of customized domain names will increase the opportunities for cybersquatting – the registration of a domain using the name, trademark, brand, or other word associated with a company.
“Cybersquatters could then sell the domain for an elevated price, use it to capture traffic based on mistyped web addresses or as part of an email or website scam targeted at the organization’s customers,” Ms. Gallagher stated.
Some companies believe every new top level domain could make the problem more acute, she added.
Ms. Gallagher explained that organizations are already making defensive domain name registrations, applying for domain names with similar spellings to their main website address.
This means they will also own domain names which could be used to direct traffic away from their sites, reducing the risks.