Click Fraud Is Growing on the Web

A year ago, DiamondHarmony.com, an online jewelry store, decided that it had outgrown its sole source of advertising, which was eBay. The company added an elaborate marketing effort on search engines that included a pay-per-click advertising campaign based on keywords and phrases. For its trouble, DiamondHarmony became ensnared in click fraud.

When Joe Tedd, who manages DiamondHarmony.com’s Internet search strategies, noticed a sudden rise in mouse clicks with no increase in sales, he suspected fraud. It cost his company $17,000 in seven months.

Instead of actual prospects, the clicks were coming from fraudulent sources. The fraud, which cost DiamondHarmony $17,000 over seven months, was uncovered through analytical software the company installed from ClickTracks of Santa Cruz, Calif.

By KAREN J. BANNAN

Full Story: http://www.nytimes.com/2006/09/23/technology/23click.html?_r=1&oref=slogin