According to Markmonitor, cybersquatting continues to be the preferred method of online fraud. Linking a website with a major name brand or trademark, increases the likelihood that consumers will be confused. When consumers fail to understand that they are at a third party website unauthorized and unassociated with the trademark holder, they are more likely to “trust” the website, download malware or be persuaded to reveal usernames and passwords for the actual brand owner website.
The apparel, auto, food/beverage, high tech and media industry sectors continue to see the most rapid growth in brandjacking and online fraud. Although the financial services market continues to be a favorite target of cybersquatters, brandjacking in that industry appears to be down from previous years.