Sunday, May 23, 2010

Microsoft is leading the hunt for fraudulent clicks

Microsoft has set up a legal offensive to tackle scams aimed its advertising system on pay-per-click. The company from Redmond has filed two complaints against what it considers to be a sophisticated new form of crime.

Microsoft acknowledged this week in its complaints website publishers to use the practice of "laundering of clicks." This expression found by the company includes the traditional forms of fraud, in which automated scripts or individuals generate lots of clicks on online ads, but, according to Microsoft, hide another practical scheme would force clicks on reserved areas, and would believe they were carried on the website publishers.

Complaints from Microsoft designed the webzine scientific - and shop online - RedOrbit.com, and a dozen anonymous persons. They are accused of artificially inflating the click-through rates on advertisements posted by the website. "By generating a large volume of fraudulent clicks and making them invalid account in Microsoft's advertising network, those involved have sought to illegally profit at the expense of the advertisers," says one of the complaints. "Microsoft has spent substantial money and resources to investigate and remedy the effects of their conduct, reimbursing advertisers for fraudulent clicks generated on the site RedOrbit.com."

For the president of RedOrbit.com Eric Ralls, the complaint is unfounded, and his site was not involved or has attended a click fraud. A study of Click Forensics, which collects data on the issue, approximately 17% of clicks were fraudulent in the first quarter of 2010. An increase of 14% compared to 2009. According to Microsoft, RedOrbit generated about 75 clicks per day on its ad network in 2008. A figure that the system of fraud would have to climb to over 10,000 per day in January and February 2009, according to the lawsuit.

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