Disputes over web addresses that have been “squatted” have risen from 6,168 to 6,282 cases globally* over the course of last year, leading intellectual property law firm Mathys & Squire says. This is up 49% in five years (from 4,204) and 128% in 10 years (from 2,754).
It said that website domain squatting by fraudsters continues to be a significant challenge for major brands.
Fraudsters frequently set up websites with similar names to brands so that they can sell counterfeit goods such as luxury handbags, luxury clothing and even pharmaceuticals.
Last year Gucci had to launch 20 cases, Zara owner Inditex launched 5 cases, Eli Lilly, the pharmaceuticals giant behind weight loss jab Mounjaro was involved in 25 cases.
Domain squatting is when people register web addresses that are identical or similar (often including the brand and another generic element such as “store” for example) to those of legitimate businesses, such as retailers, luxury brands, toys group and drugs companies.
Claire Breheny, Head of Trade Marks at Mathys & Squire, says: “Domain name disputes remain a persistent problem for major companies. Fraudsters impersonating well-known brands can cause those brands significant reputational harm and serious revenue loss.”
Breheny explained that the high number of disputes is being driven by the rapid expansion of global domain extensions, such as .shop, .online and .tech. The constantly growing range of available domains means businesses can struggle to keep track of registrations that can be connected to their brands.
Many website security engineering teams do not have the capacity to monitor every new domain that appears, limiting their ability to detect misuse at an early stage. Mathys & Squire says this is increasing the need for businesses to utilise better monitoring tools and put in place more robust brand-protection strategies.
Breheny added: “The explosion of new domain extensions is outpacing what most teams can monitor. That gap is giving fraudsters greater scope to exploit well-known brands.”
In the UK, domain squatting remains a significant issue, with WIPO cases brought by UK companies doubling in a decade, from 229 to 450.
Claire Breheny says: “Domain abuse in the UK is persistent. These figures show that brands cannot afford to be complacent, especially with the advent of AI and the fact that bad actors can have fraudulent sites up in minutes.”
Mathys & Squire says companies should proactively monitor domain registrations across all relevant extensions and secure the most important brand-related domains at an early stage. It adds that businesses should act quickly to challenge infringing registrations to prevent consumer fraud and protect corporate reputation.
Claire Breheny concludes: “To reduce the risk of impersonation, businesses must take a proactive approach by registering key domains, monitoring new registrations and challenging fraudulent sites before they damage the brand.”
*Year end: 31 December 2025.
