Unraveling the Web of Pay-Per-Click Deceit

Do Advertisers Attract Real Prospects or Feed Affiliate Networks?


FAYETTEVILLE, NC -- (MARKET WIRE) -- 01/11/06 -- One month after
taking legal action against Google over click fraud, AIT has unveiled
a portal site dedicated to battling the problem. Igeryon.com
(http://igeryon.com) is named after the monster in Dante's Inferno
that symbolizes Fraud who dwelled in the 8th level of Hell. Like
fraud, Geryon's innocent face fooled onlookers long enough to be stung
by his scorpion-like tail. "This site will be a clearinghouse of
information on shady affiliate networks, software that generates false
clicks and impressions, and how-to advice so advertisers can avoid
being ripped off," said Clarence Briggs, AIT's Chief Executive
Officer.


AIT (http://ait.com) is also partnering with companies who make tools
that protect advertisers and website owners. "The site will be to
fraud what the anti-spam portals are to spam," according to Sean
McCoy, Senior VP for AIT. "People will be able to file complaints and
exchange information about click fraud. The portal will serve as a
source of information for consumers, businesses, government agencies
and other organizations." Additionally, McCoy said they will list
search engines and other online advertisers who have demonstrated a
trend of working to identify and eliminate fraud such as the Overture,
MSN and others.


Since deciding to take on Google, AIT has heard from several companies
who have shared their experiences with the search engine giants PPC
model. Most have done so under cover of anonymity, fearing reprisals
against their businesses. But, 15-year old Anthony Bush -- a junior
programmer from Washington State -- isn't shy about it. "I was cheated
out of several hundred dollars," said Bush, "and the weird thing was,
my account was closed on the last day of the month, which is when they
essentially start the pay process."


Briggs is not commenting specifically on the lawsuit against Google,
saying that AIT lost up to a half-million dollars through fraudulent
clicks. In researching the issue, he came across innumerable affiliate
pages set up with PPC advertising syndication for the sole purpose of
clicking to steal. These affiliate networks are aided by thousands of
software providers whose products automate both clicks and advertising
impressions, and the companies make no bones about it: "Send thousands
of unique IP 'fake' visitors to your website!"


Briggs says the fact that many of the IP addresses that click to steal
come from overseas, including countries that are not U.S. allies,
should alarm U.S. companies and citizens alike. "I wonder where the
money is going to pay the affiliates and what purpose it is being used
for," asks Briggs. Briggs says the latest PPC fraud has unscrupulous
affiliates linking porn pictures at their Web sites to the sites of
PPC advertisers. "We got hit by it," says Briggs. Now you have people
all over the world clicking on adult material and winding up on
legitimate sites. Each time they click on an image, it's registering
somewhere as a click, and somebody is being charged for that click."


In pursuing the case, Briggs was astounded at how simple it is to set
up an affiliate network like this. "That is not a site AIT has paid to
be on, but our ad is there anyway like so many other sites with
automated clicks coming through," said Briggs. "This is the type of
site a search engine or any other PPC broker either implicitly or
explicitly supports; either way, it's wrong." Briggs estimates there
are millions of affiliate pages and parked domains set up with PPC
advertising syndication for the sole purpose of clicking to steal.


He indicates that he has been documenting this for quite some time and
there are lots of companies participating who are profiting for what
they know to be wrong. "If the CEOs of the large companies understood
how their advertising dollars were being stolen along with their
shareholders, they would be very upset." said Briggs. "A search engine
or online publication that pretends it can represent advertisers and
affiliates at the same time is like an attorney who claims he can
represent both the plaintiff and defendant in a lawsuit or a real
estate agent who represents both the seller and buyer at the same time
-- there is a built in conflict of interest," says Briggs.