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We are going to release our new product which will have customers create their own subdomains. This requires having a wildcard DNS on our main domain (We have no other options, right?)

Are there any disadvantages (from a security point of view) in having a wildcard DNS?

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Nope, I don't think there are any vulnerabilities.

A google search turned up this article from 2005 which suggests that your customers might use the wildcard to generate semi-convincing URLs(e.g. http://barclays.co.uk|snc9d8ynusnes89g8z.domain.com) for phishing attacks. Nevertheless, I dont think its something to worry about.

link : http://news.netcraft.com/archives/2005/03/07/phishers_use_wildcard_dns_to_build_convincing_bait_urls.html

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