One of Network Solution’s servers was breached.

On Friday, Network Solutions reported that one of their servers, holding at least 10,000 e-commerce sites, had transaction data stolen from over 4,000 of those 10,000. That means that nearly 600,000 online shoppers had credit card information stolen among those some 4,000 sites.  Any transactions on these sites between March 12 and June 8, 2009, were at high risk of being affected. There have been no public reports of any credit card information having been misused yet, but it has only been four days.

Network Solutions is putting a band-aid on the problem by creating a blog for updates and feedback specifically for Network Solutions’ merchants. You can imagine the amount of panic and frustration all the merchants at Network Solutions must be feeling- and you can read it in their comments. One woman wrote in a comment in response to the initial announcement of the breach,

“Does NetSol realize how catastrophic this can be to its merchants who have their website(s) hosted with them? While I only had 9 transactions affected (out of 120+) during the aforementioned timeframe, that’s 9 transactions TOO many. It only takes 1 transaction of this nature to totally destroy a person’s business.

I have been sick/nauseous over this happening ever since I first heard about it late last night … Because I use the NetSol CC payment system, I don’t see any way to NOT have my personal business reputation TOTALLY destroyed in regards to this happening.”

She is right. One transaction is enough to ruin any reputable business, and Network Solutions is now responsible for almost 600,000 stolen transactions! They must be really ruined.

I don’t want to say I told you so, but if a host has faced lawsuits for its dishonest practices in the past, I would not be looking to them for hosting services.

There are a few problems with this.  First, Network Solutions is more expensive than most of their competitors.  So I should be able to search available domains at any of the registrar companies’ sites, and then choose to purchase said domain wherever I see fit.  But it’s not working that way over at Network Solutions.  They are the schoolyard bullies of the internet.  They steal your lunch and make you buy it back from them… at a premium.

Well, now they’re being sued for this shady practice.  And I think…well…it’s about time for this Network Solutions lawsuit to happen…maybe it’s even overdue. 

The lawfirm Kabateck Brown Kellner put out this press release announcing the suit.  From the release:

“Network Solutions has forced millions of people to buy Internet domain names from them instead of cheaper competitors through a scheme that’s netted the firm millions of dollars, a federal class action lawsuit filed today by Kabateck Brown Kellner, LLP states.

Whenever someone searches for the availability of a domain name through Network Solutions’ website, the company immediately registers the name for itself, preventing other companies from selling it and forcing consumers to pay Network Solutions’ expensive fees.

If a consumer were to go to another, cheaper site to register the name, they would find the name is “unavailable.” Consumers are never informed that inquiring as to a name’s availability through Network Solutions results in the company holding a monopoly on selling that name.”

ICANN, the nonprofit that oversees domain name purchases, is also named in the suit because they aren’t doing anything to stop Network Solutions. 

Look, we said this before and we’re not afraid to say it again–until all our clients know to avoid the schoolyard bullies–don’t search for domain names through Network Solutions.  Oh, and also, don’t do business with them period.  Why would you want to after knowing this? 

Even if they reverse their policy, there are still plenty of reasons to avoid them.  Their domains are nearly four times as expensive, that’s been covered.  But they also have a difficult-to-navigate administrative control panel.  It’s hard to figure out how to do things with your domain, whereas the other registrars like Bulk Register make it intuitive and easy. 

And forget about transfering a domain name out of Network Solutions.  I mean, sure, it can be done.  But the second you change the domain status from ‘locked’ to ‘unlocked’, which is required before you can transfer it, Network Solutions puts the domain in a “transfer lock status”.  That’s right.  They take it out of “domain lock” only to put it in “transfer lock.”  Gee, thanks.  Then they hold the domain in stasis for 60 days just because you changed some of your administrative contact information or asked for the domain to be unlocked. 

As they did with the domain-stealing bit, Network Solutions claims that this “transfer lock status” is to protect you…and keep some hacker from logging in and stealing your domain without your knowledge.  But then why do none of the other registrars feel the need to do this?  I’ll tell you why.  Because they aren’t sneaky jerks and schoolyard bullies.  Network Solutions’ only reason for this transfer lock is so that you can have 60 more days to contemplate whether or not you really want to leave their service.  They’re hoping–I’m sure–that by the time 60 days have passed, that you’ll forget all about the fact that you even wanted to transfer the name in the first place. 

I’m not a mean guy.  I have no interest in bashing companies just for the sake of it–you can read through this blog and see that we rarely do that.  But there’s just so much going on at Network Solutions that we feel we need to warn our clients.  It seems they care WAY more about squeezing every dime out of you than they do about you.   And that’s what’s led to this Network Solutions lawsuit. 

For the record, we recommend you use Bulk Register, or GoDaddy, or just call us and we’ll take care of it for you.  But unless you enjoy forced overcharges and unnecessary hassles, don’t search for or buy a domain name through Network Solutions.