Domain squatting refers to the practice of registering one or more domain names with the primary goal of reselling them to the rightful trademark owner at an inflated price. This includes variants such as typosquatting, where common misspellings of a brand are registered to capture accidental traffic or facilitate phishing activities.
This practice creates "Governance Red Flags" during corporate due diligence. It poses a continuous threat to brand integrity and user trust, as squatted domains are frequently used for business email compromise (BEC) and fraudulent landing pages.
Avoid reactive spending. The most efficient defense against domain squatting is a proactive, multi-TLD defensive registration strategy for your core brand and key trademarks. By securing the "sunlight" around your primary domain (e.g., .com, .net, .org and common regional extensions), you eliminate the adversary's entry point. From a valuation perspective, a clean digital estate with no active squatters demonstrating brand impairment is a sign of mature institutional governance.