iarbiz.com noticed in stats for my site

I have recently noticed mysite.iarbiz(.)com/34grt54433
mysite is of course my site
the number and letter combination is different from time to time

There doesn't seem to be any information on this on any webmaster forums.
After finally risking going to the address mentioned above; i see it is an exact copy of my site.

I got curious and filled out a form, that is on the copy of my site, and luckily the information is still going in my database.

This site appears high in my Total Referrers on webalizer stats.

My site has been on a slow but steady climb in traffic; the only difference is the last 2 months iarbiz(.)com appears a lot with different number and letter combinations.

After researching this issue i finaly found this: google(.)com/safebrowsing/diagnostic?site=iarbiz(.)com/
This shows that google now lists this site as suspicious for malware.

Does anyone know why a site would do this or how can i stop it?

Is it probable to think that traffic that was once coming form one source is now being directed to the iarbiz copy of my site.

I figure this site is doing bad things and figure a work around might be check for refferer if it is iarbiz redirect to my site. Maybe a script at the top of everyone of my pages that would do this.

Any help on this would be greatly appreciated. if any one else has roughly the same problem please post and maybe we can understand what they are doing together.