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We had a couple of our client's domains moved out of our GoDaddy account by an unauthorized person and transferred to another Registrar OnlineNIC. The domains are not registered under a different person's name. We immediately notified both registrars. Despite many messages to GoDaddy basically took no responsibility for their system's vulnerability to allow such an unauthorized transfer. OnlineNIC is not much better in handling this situation, although they have locked the domain from any type of change to DNS, but require the dispute to be resolved through the ICANN dispute resolution channel. OnlineNIC will comply and return the domain once they receive the dispute resolution through ICANN.
There is plenty of references on the internet about the person who did the unauthorized domain transfers. Once he does the transfer he sends notices to the previous owner to buy them for $800 or something. We have not received this type of notice from him since we had the domains locked down b...
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