I worked in webhosting for nearly a decade so I'm quite familiar with the volume of fraud and stolen domains. But to play the devils advocate how would you feel if somebody claimed a domain you own was stolen just to freeze your account and waste your time. You'd be furious at GoDaddy for freezing your account over a fictitious claim.
This. I want to upvote this comment a hundred times. If there's a dispute with probable cause, temporarily freezing the domain while launching an immediate investigation seems by far the best balance of thwarting domain theft and minimizing fraudulent claims.
I'm not very familiar with their policies. Does that apply even in the case of theft? Didn't the article's author recover her domain within a few days?
It's no matter what you are only allowed to move domains once every 60 days. It is to prevent somebody from stealing a domain and moving it through 10 different registrars to wash the history of ownership.