A Few Dirty Little Secrets About Backordering A Domain Name - DaveZan.com | DaveZan.com: "The idea behind this is is I get around the rule that my registrar can’t actively engage in backordering and “stockpiling” domain names. But I can still do that under my LLC because there’s no specific rule preventing this from happening.
Unfortunately this presents a strong implication, which is another dirty little secret I’ll reveal. Even if you win the auction, there’s really nothing to stop the backorder company from “cancelling” your bid, refund your money, and take the name for themselves.
Now I know this one’s rather farfetched, and I admit I don’t exactly have direct proof. But the reason I mention this is because some people I know have personally experienced something like this happen to them."
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