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Cybersquatting is the malicious registration of an internet domain name identical or confusingly similar to a trademark with the intent to profit from that trademark, often by selling the domain to the trademark owner, diverting traffic, or spreading malware. This practice is illegal under laws like the U.S. Anticybersquatting Consumer Protection Act (ACPA) and involves bad faith intent to exploit a brand's reputation or confuse users.

How Cybersquatting Works

Domain Registration: A cybersquatter registers a domain name that looks or sounds like a well-known brand.

Bad Faith Intent: The goal is to profit from the trademark, which can be done by:

Selling to the Owner: Demanding an inflated price to sell the domain to the rightful trademark owner.

Diverting Traffic: Redirecting users to a competing business or their own site to gain visitors.

Malicious Use: Using the site to host phishing scams, distribute malware, or spread misinformation.