Because I have seen a lot of scam websites even though if they have been reported as a scam or has been known as a scam for a long time now their websites are still active and has not been shutdown yet.
Creating a scam accusation in the forum only creates awareness for the visitor of the topic and comparing to visiting a site it's not much. The best practice I believe is to report the domain and hosting service provider about it. In the past I have reported few and per my knowledge they were handled.
Will option 2 work though?
So, yes it works. With Namecheap, you will need to contact through their customer service. I think you will need to create a ticket for that.