Cybersquatting refers to illegal domain name registration or use. Its primary purpose is to steal or misspell a domain name in order to profit from an increase in website visits, which otherwise would not be possible.
As a general rule, first check to see if the domain name takes you to a website. If it does not take you to a functioning website, but instead takes you to a site stating “this domain name for sale,” or “under construction,” or “can’t find server,” the likelihood increases that you are dealing with a cybersquatter. The absence of a real site may indicate that the domain name owner’s only purpose in buying the name is to sell it back to you at a higher price. Of course, absence of a website does not always mean the presence of a cybersquatter. There may also be an innocent explanation and the domain name owner may have perfectly legitimate plans to have a website in the future. [nolo.com]
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