Domain Name Kiting is a new online scam that's pretty fascinating. Under new domain reg rules, you can register a domain for five days without paying for it. Kiters register thousands and thousands of domains and stick ads on them, check to see which ones generate income, and pay to keep those registrations. They can also linkfarm on those domains, using thousands of shifting come-and-go domains to try to trick Google into conferring pagerank on a spam-site. Here's a pretty good explanation of Domain Name Kiting and how it got here:
The AGP is a five-day window period during which a newly registered domain name can be deleted/ dropped with full refund of registration fee. AGP was introduced to provide a mechanism for Registrars and registrants to correct mistakes, reverse fraudulent registrations. Registrars involved in kiting scam, register thousands of domains against the large amount of money they deposit with Registry. Domains registered are usually the expired ones, which have been indexed by search engine giants like Google, Yahoo etc. Appreciable volume of type-in-traffic is received for these domains, which have now been parked, to generate revenue. Domain Parking presents viable option for domainers to generate revenue from their unused domains, by hosting a single page web site with paid advertisement links. Clicks from visitors to such sites, generates money for the domainer.
