Old News To Me
This practice has been going on for years I'm sure:
In the middle of 1999, I was working for a major UK technology company and had an idea for a personnal domain name related to a particular interest of mine. It was a vaguely pronouncable four letter acronym, lets call it wxyz.com as an example.
At work, I used the internet to check domain name availability and found that wxyz.com and wxyz.co.uk were available. Note that anyone having access to these searches would see the query source IP as belonging to a major technology company, a household name,
The next day, I showed this service to a colleague who had expressed interest and looked up the availabilty again to show the facilty to him. wxyz.com and wxyz.co.uk were by that time taken, less that 24 hour after my initial enquiry.
For the past eight years, these domains have been parked or held or in some way owned by someone who does absolutely nothing with them. Right now, wxyz.com is for sale for $800 and wxyz.co.uk is available. I assume whoever it was got fed up with waiting on the .co.uk address.
Of course this happens, as long as there is a chance of money being made then people will do what they can to make it. It doesn't take a genius to figure it out but it would take reorganisation and security to stop it. I'm sure ICANN's preference on this one has always been to stick their head in the sand.