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Tokelau’s Tiny Domain, Big Financial Impact of Cybercrime

Unless you’re a geography buff, you may never have heard of the tiny Pacific territory of Tokelau. With only about 1,400 inhabitants and no telephone service until 1997, it’s not surprising that few people know about this small atoll. However, as MIT Technology Review reports, Tokelau would go on to become an unlikely internet giant, writes Jacob Judah.

A Cybercrime Hub

The story begins in the Wild West days of the early internet in the year 2000 and a Dutch entrepreneur named Joost Zuurbier. That year, Zuurbier struck a deal with Tokelau to manage its country-code top-level domain (ccTLD), or the string of characters that come after a URL. Tokelau had neither the money nor the know-how to do this on its own.

A Free Website Deal

Zuurbier’s plan was to allow anyone to obtain a .tk website for free, so he (and theoretically, Tokelau) could make money off ads. The end result is that until recently, the .tk domain had more users than any other country’s, writes Judah.

A Problematic Deal

The problem is that virtually all of these users were spammers and cybercriminals. It’s a safe bet you (and almost everyone else) have encountered a .tk website, even if you weren’t aware of it.

Tokelau’s Anger and Concern

Today, officials in Tokelau, who say the territory did not see a financial windfall, are angry about how it all unfolded and the damage to their reputation. Despite being unaware of the deal, they are now left to deal with the fallout.

Significant Financial Losses

Tokelau’s .tk domain has become synonymous with spam and cybercrime, causing significant financial losses for the country and its people. The territory is now working to distance itself from Zuurbier’s operation and regain control over its digital identity.

Questions Remain

The question remains: what was Zuurbier thinking when he signed this deal? And how did it take so long for Tokelau to realize the magnitude of the problem?

Conclusion

Tokelau’s tiny domain has had a big impact on the country’s finances and reputation. The territory is now working to regain control over its digital identity, but the questions about Zuurbier’s deal remain unanswered.