Domain name spam essentially means registering names that look like that of legitimate companies but lead users to fake sites designed to steal passwords and credit card details .Domain names are the ‘real language’ addresses of websites, rather than their internet protocol address, which is a series of numbers.

Domain names are used so people can more easily navigate the web.So-called ASCII codes are used to represent European languages but for other languages a hybrid of a system called Unicode is used.So, for example, website PayPal could now be coded using a mixture of the Latin alphabet and the Russian alphabet.The resulting domain as displayed to the users would look identical to the real site as a Russian ‘a’ look just like an English ‘a’.But the computer code would be different, and the site it would lead users to could be a fake."

Now whats the solution to this kind of spam ? This is more deleterious than e-mail spam. Hopefully we will see a good solution coming up rather than to introduce Internationalised Domain Name (IDN) disabled browsers

Link :Domain system opens door to scams