Robert
Irvine,#2Consumer Comment
Tue, April 26, 2011
There are people who's sole "business" is "Cybersquatting" that is they wait for a domain name to expire and as soon as it become available to buy it. They do this in the hopes that the real company had a lapse in bookkeeping and let it go by mistake. They then capitalize on it by trying to sell them back the domain for hundreds to thousands of dollars. Many Registrars have put in various levels of protection to not only keep this from happening. There are also people who try and "hack" accounts and do things such as turn off "auto-renew" or to just cancel the domain.
It appears that GoDaddy is having problems verifying that you are in fact a person who is authorized to make that change. Without knowing ALL of the details it is hard to say if they are doing anything wrong. But think about this, if the "shoe was on the other foot" and someone was trying to take your domain away you would be gratefull that they are trying to verify the identity.