• Microsoft Sues Three for 'Click Fraud'

    Microsoft Sues Three for 'Click Fraud'

    Techtree News Staff, Jun 17, 2009 0830 hrs IST

    Asks $750,000 as damages!

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Microsoft has filed a suit against three individuals for a 'massive' click fraud scam by manipulating Microsoft's advertising service. A suit seeking $750,000 has been filed against damages for an alleged scheme that was launched to promote auto insurance and World of Warcraft MMORPG Game. The complaint (PDF) extends to several parties and companies which are controlled by those three individuals.

Tim Cranton, associate general counsel, posted about the 'Click Fraud' on the Microsoft on the Issues blog. Click fraud takes place when a person, specific computer program or automated scripts imitates a Web Surfer behavior and clicks on the 'charge-per-click' automatically in a repetitive manner. Under this click fraud scam, three Vancouver based individuals Eric Lam, Gordan Lam and Melanie Suen have been roped for launching the alleged scheme. This fraud is said to have disrupted Microsoft's advertising platform apart from other networks.

As per the complaint, a large group of people or automated computer scripts were used to generate large amount of clicks on the auto insurance and online game advertisements. Microsoft had launched investigation on March 24, 2008 after receiving complaints of suspicious online activities from auto insurance advertisers that use its sites.

Later, it was discovered that computer IP addresses in thousands were used to disguise the true source of traffic. The traces were leading to the computers or servers run by Lam and apparently had links with auto-insurance advertising as well as World of Warcraft online store.

The online advertising industry is getting active against the frauds caused due to loopholes in search advertising platforms. Nonetheless, targets are mostly launched on massively popular online services.

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