GoDaddy Accounts Vulnerable To Social Engineering (and Photoshop)
itwbennett writes: On Tuesday, Steve Ragan's GoDaddy account was compromised. He knew it was coming, but considering the layered account protections used by the world's largest domain registrar, he didn't think the attacker would be successful. He was wrong. Within days, the attacker gained control over Steve's account just by speaking to customer support and submitting a Photoshopped ID.
I don't know if Godaddy speculates under Domains By Proxy, but Domains By Proxy is what they also list any account that has enabled the "whois privacy" feature to mask their contact information. It's possible you were just a victim of bad luck.
I recently transferred one domain (I plan to transfer the rest), but came across an interesting issue in the process. The domain used a proxy registration to hide my information (as recommened in TFA), but, in order to allow the transfer, I had to disable the proxy registration and make it public. Thus, for some time, my privacy protection was not effective. Now this wasn't a big deal for me, but it could be for others.
Also, note that GoDaddy's domains by proxy makes the total cost of a private domain registration far higher than many other registrars.
The real "Libtards" are the Libertarians!