Well AdSense uses a payment mechanism that awards a sum of money to a publisher google adsense (someone who holds the AdSense banner on their page) every time someone clicks on the banner. So click fraud is an attempt to have people clicking the ads just so they could get a larger income.
Some people prepare the site for the sole purpose of deceiving generate revenue through Google's AdSense program. These users achieve an incredible number of clicks through many methods, some complex and sophisticated and some basic and simple.
One of the most complex is through the use of so-called "hitbots". These are automated programs that mimic AdSense clicking on the banner link (there are some that actually click on the banner as well).
Google's AdSense protection scheme is by no means perfect and nearly everyone can find the details of surmounting the protection mechanism, ironically just by doing a Google search.
Another method, more simple is to hire more people in poor countries to click a link on your site. This means these people will actually sit all day and just click the link so you can get lucky. They come from countries like India are very poor, and they are ready to do it for only $ 0.50 per hour.
Of course, there is a problem with this mechanism. Once Google receives a large number of clicks from one address, address and sites that have AdSense banners will be prohibited, and forbidden behavior can even get the fraudster sued.
To prevent this from happening, many people use a large number of proxy servers for the purpose of clicking. These are basically trojans, located on computers around the world (though mostly in the U.S.). What is more frightening is that these clicks will appear to come from the actual computer, so that fraud is very difficult to detect.
And do not think this happens only in isolated cases. There are many illegal activities in this domain.
Even if there are so many search engine companies do not increase their security with programs such as AdSense, such criminal behavior could become more damaging.
Google has a very strict policy regarding click fraud, and sued them using techniques such as in the past. But while search engine giant tries its best to minimize the risk of click fraud there must be room for much improvement.
It is estimated that more than 20% of the clicks that follow the AdSense link just done to get money from people who pay for advertising. Some people believe the number of fraudulent clicks will be two times greater.
There are more schemes involving click fraud, such as the AdSense publisher clicks on each link (referred to as "clicking rings", or spamming people so that they click on that link.
Despite Google still holding click fraud on the ropes, this phenomenon is certainly raising concerns for the advertisers on AdWords, but despite this advertising with Google's AdSense still remains more profitable for advertisers, as compared with traditional schemes targeted ads.
There are several ways of protection against such schemes and all advertisers should be smart enough to hire them. Many advertisers choose to avoid the content network all together for fear of fraudulent clicks.
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