The hacker issue is about Phishing domains.
These are domains primarily in character sets that look like English but isn’t.
People also call these mixed script domains.
It would be like PayPal.com but instead of an “a” it would be a foreign letter “a”.
Sorry but you can’t register these domains anymore. ICANN put a stop to it.
Also there’s no way to fake a Japanese looking domain. There is no character set that looks like Japanese, Chinese, Russian or Arabic.
I’m just trying to tell you the worth. A lot of IDN related issues were already ironed out.
There is *no* type-in traffic for an IDN because IE does not currently support IDNs except through a plug-in.
There are also useability and hacker issues with IDNs which make it quite difficult to design the right concept – they have been working on this for some time and standards have been agreed upon – but ultimately this is still a basically untested concept.