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PPC FRAUD:





                                                             Protecting Against



                                                                                      Click Fraud






          unning paid advertisements within the   of  website  visitors,  who  may  not  be  paying   but without experiencing any benefit from the
       Radult industry can be a tricky business.   directly for the information or services which   impression. Implicitly, both the advertising
       Many of the companies that are willing to work   they  are  accessing.  Many  adult  websites  take   network and the website displaying the ad
       with adult websites are questionable at best,   advantage  of this  advertising  model, while   benefit financially from this impression.
       and some of the practices that they employ   simultaneously  advertising  their  own  services
       aren’t exactly above-board. One of the most   through  paid  ads  on  other  websites.  Other   PPC fraud may be carried out by a low-wage
       insidious is PPC fraud, otherwise known as   types of websites which frequently engage in   worker. Worker-based PPC fraud is frequently
       “click fraud.” Click fraud is a growing problem   this type of advertising include Amazon affiliate   located out of India, elsewhere in southeast
       within the paid digital advertising industry, and   sites, news media and information websites,   Asia,  or  in  eastern  Europe.  Click  fraud  may
       for adult website operators in particular. It takes   and successful blogs.    also be engaged in, even more affordably, by
       advantage of a popular form of advertising in a                                a mobile app or traditional computer software
       way that is difficult to demonstrate, and virtually   When a user viewing an ad in their Web browser   program,  or  “bot.”  These  types  of  click  fraud
       impossible to prosecute. Even the existence of   clicks on the ad, the account which purchased   can be mounted from anywhere in the world,
       PPC fraud is controversial, despite the impact   the ad is debited, and the account which is   and  at  minimal  expense.  A  single  fraudulent
       it has on many websites; the best practices for   displaying the advertisement is credited for its   impression may only result in a few cents being
       dealing with click fraud involve the avoidance   share. There may be other requisite conditions   lost, but any form of click fraud is capable of
       of problematic advertising networks.    involved,  depending  upon  the  network:  for   generating  thousands  of  false  impressions
                                               example,  the  visitor  may  have  to  spend  a   in a relatively short span of time. A clever
                                               certain  amount  of  time  on  the  destination   fraud may target multiple sites, industries or
       What is PPC advertising?
                                               website before money exchanges hands. They   networks, resulting in millions of dollars worth
                                               may have to perform some specific action, such   of damages over time.
        Large  networks,  such  as  Google  AdSense,
                                               as sign up for an email list, or make a purchase.
       sell  advertising  space  to  clients  who  wish  to
                                                                                       Smaller,  highly  specialized  networks
       market  goods,  services,  or  charitable  causes
                                                                                      sometimes engage in this behavior, along with
       online. Other website owners are then paid, by   How Does PPC Fraud Work?
                                                                                      websites which earn a substantial amount of
       the network, to display these advertisements.
                                                                                      money through  displaying advertisements.
       Ads  are  typically targeted  at  websites  from a   Given the potential complexity of the pay-
                                                                                      There are other frequent perpetrators, however.
       similar industry, which fit a compatible profile;   per-click  advertisement  model,  the  method
                                                                                      Sometimes, the fraud is carried out by an
       in other words, the network itself tries to match   by which pay-per-click  fraud is  committed is
                                                                                      agency which does not stand to benefit directly
       ads with relevant audiences, thereby increasing   extremely simple. Those who are hurt by PPC
                                                                                      from their scheme. They may be a competing
       engagement.                             fraud include websites, particularly smaller
                                                                                      advertising  network,  or  a  competing  website.
                                               websites with lower advertising budgets, who
                                                                                      Some hackers and other cybercriminals have
        Ad spaces on the most highly visible networks   bid  for  ad  spots  in  the  first  place.  Websites
                                                                                      been known to engage in PPC fraud for the
       are  usually  auctioned  off  based  on  keywords.   which have a limited selection of networks to
                                                                                      same reasons that petty criminals vandalize
       A popular keyword can cost an advertiser $10   choose from, such as highly specialized or
                                                                                      advertisements in real life, which range from
       or more per click to secure, while less common   adult  websites,  are  particularly  vulnerable  to
                                                                                      personal or political vendettas, to the sheer
       keywords may top out at $0.10 or less per   this practice, since affordable rates can make
                                                                                      thrill of getting away with causing mayhem.
       click.  Either  way,  the  cost  of  pay-per-click   shady networks look superficially appealing.
       advertising can quickly run away from the
       inexperienced administrator. This is a part of   Click fraud occurs when someone with an   How to Protect Yourself from
       what makes PPC fraud so frustrating.    immediately  vested  interest  in  seeing  the  ad   Click Fraud
                                               clicked engages the advertisement in a manner
        This advertising model is a significant source   that imitates the action of a legitimate visitor,   Click fraud is difficult to prove, and even more
       of funding for many popular websites. It helps   charging for an impression, despite having no   difficult to prosecute. Very simply, it’s difficult
       to offset their operating costs, and it provides   actual interest in the destination website. The   to tell who is behind a Web browser, or what
       a source  of income based upon the activity   purchaser of the advertisement is charged,   they want. In particular, a human-run agency

       44 PAYOUTMAGAZINE                                                                Sponsored by
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