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Google-hosted malvertising leads to fake Keepass site that looks genuine
(arstechnica.com)
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That's true. Also I guess domain names in most ideogram-based languages cannot be meaningfully converted to ASCII. The best detection method I'm aware of is detecting a mix of different alphabets in the domain, but I imagine even this has a lot of false positives
They could add some kind of warning message that notifies you when the URL has unicode in it. Then the user can decide if they want to disable the warning or not.