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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Internet click fraud may be underreported

Associated Press The Spokesman-Review

SAN FRANCISCO — Deceptive clicks on Internet advertising links distributed by Google Inc., Yahoo Inc. and other online marketing vehicles are probably occurring far more frequently than the network operators acknowledge, according to a study by fraud detection specialist Fair Isaac Corp.

The chicanery involves automated computer programs or scam artists who repeatedly click on ad links with no intention of buying anything. The short ad links, which appear alongside search results and other content at thousands of Web sites, typically trigger a commission with each click — a financial formula ripe for mischief, Minneapolis-based Fair Isaac found.

The study’s preliminary conclusions, scheduled to be discussed today during a Fair Isaac conference in San Francisco, threaten to revive suspicions among advertisers that they have been overcharged as part of a ruse known as “click fraud.”

After reviewing a handful of Web sites since last August, Fair Isaac believes 10 to 15 percent of the advertising traffic is “pathological,” indicating a likelihood of click fraud, said Joseph Milana, the company’s chief scientist of research and development.

“It’s still an early result,” Milana said. “The question remains about how broad the problem is in the entire marketplace.”

The culprits behind click fraud typically are either trying to make more money from the ads appearing on their own Web sites or maliciously trying to drain the marketing budgets of a competitor.