Internationalized domain names and security 
While domain names technically have no restrictions on the characters they use and can include non-ASCII characters, the same is not true for host names. Host names are the names most people see and use for things like e-mail and web browsing. Host names are restricted to a small subset of the ASCII character set that includes the Roman alphabet in upper and lower case, the digits 0 through 9, the dot, and the hyphen. (See RFC 3696 section 2 for details.) This prevented the representation of names and words of many languages natively. ICANN has approved the Punycode-based IDNA system, which maps Unicode strings into the valid DNS character set, as a workaround to this issue. Some registries have adopted IDNA.
DNS was not originally designed with security in mind, and thus has a number of security issues. DNS responses are traditionally not cryptographically signed, leading to many attack possibilities; DNSSEC modifies DNS to add support for cryptographically signed responses. There are various extensions to support securing zone transfer information as well.
Even with encryption it still doesn't prevent the possibility that a DNS server could become infected with a virus (or for that matter a disgruntled employee) that would cause IP addresses of that server to be redirected to a malicious address with a long TTL. This could have far reaching impact to potentially millions of internet users if busy DNS servers cache the bad IP data. This would require manual purging of all affected DNS caches as required by the long TTL (up to 68 years).
Some domain names can spoof other, similar-looking domain names. For example, "paypal.com" and "paypa1.com" are different names, yet users may be unable to tell the difference when the user's typeface (font) does not clearly differentiate the letter l and the number 1. This problem is much more serious in systems that support internationalized domain names, since many characters that are different, from the point of view of ISO 10646, appear identical on typical computer screens.
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