Originally Posted by HostNIT
The best way to deal with this situation is prevention. Any other means would simply equate a loss.
I would spend some time and money investing in a good fraud prevention method.
also depends on what domain seller system you use.
we use resellerclub, this happened to me once.
1) lock the domain (this stops them from moving the domain), you can do this from day 1 with any domain purchase even though they cannot move a domain for the first 60 days anyway.
2) suspend the purchases account (this stops them from logging in.)
3) change the domains nameservers. (this will stop their site from working).
4) Push the domain internally to your account and change the registrant detail to yours.
you can legally do this as you as a host have purchased and registered the domain, but your client used illegal means to pay you, so the domain is actually yours and not theirs