Click Fraud

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Click Fraud

If you’re using AdWords or AdSense you must have heard about an emerging practice in the underworld of computing called “click fraud”. But what exactly is click fraud and how is it accomplished?
Well AdSense uses a payment mechanism that awards a certain amount of money to a publisher (someone who holds an AdSense banner on their page) every time a person clicks on the said banner. So click fraud is the attempt to have people clicking the ads just so that they can earn a greater income.
There are people setting up sites for the sole purpose of fraudulently generating revenue through Google’s AdSense program. These users achieve an incredible number of clicks through many methods, some complex and sophisticated and some rudimentary and simple.
One of the most complex is through the use of so called “hitbots”. These are automated programs who emulate clicking the links in AdSense banners (there are some that actually click the banners as well).
Google’s AdSense protection scheme is by no means perfect and nearly anyone can find the details of surmounting the protection mechanism, ironically just by doing a Google search.
Another, more rudimentary method is to hire a lot of people in a poor country to click the links on your site. This means these people will actually sit all day and just click links so you can earn a fortune. They come from very poor countries like India, and they’re prepared to do so for just $0.50 an hour.
Of course, there’s a problem with this mechanism. Once Google receives a large number of clicks from a single address, the address and the site that had the AdSense banner will be banned, and the illicit behavior might 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 throughout the world (though mostly in the US). What’s even more daunting is that these clicks will appear to originate from an actual computer so such scams are really hard to detect.
And don’t think this happens only in isolated instances. There is a great deal of illegal activity in this domain.
In fact there’s so much that if search engine companies don’t increase their security with such programs as AdSense, such criminal behavior could become more become even more damaging.
Google has a very strict policy regarding click fraud, and it has sued those employing such techniques in the past. But while the search engine giant tries its best to minimize the risk of click fraud there’s certainly room for a lot of improvement.
It is estimated that more then 20% of the clicks that follow an AdSense link are just done in order to get money from the person paying for the ad. Some people believe the number of fraudulent clicks to be even twice as large.
There are a great deal more schemes involving click fraud, such as groups of AdSense publishers clicking each other’s links (which is referred to as “clicking rings”, or spamming people so that they click such links.
Despite Google still holding click fraud on a leash, the phenomenon is certainly raising concerns for the advertisers on AdWords, but despite this advertising with Google’s AdSense still remains more profitable for the advertiser, as opposed to traditional untargeted advertising schemes.

There are some means of protection against such schemes and all advertisers should be savvy enough to employ them. Many advertisers choose to avoid the content network all together for fear of click fraud.

Mortgage fraud cases, and insurance.

Nine in 10 mortgage fraud cases involve individuals painting a knowingly false picture of their personal circumstances on an application, Experian says. Photograph: Whisson/Jordan/Corbis
The level of fraud on mortgages and insurance policies has more than doubled since the start of the credit crunch, and the ongoing squeeze on household finances is likely to lead to more cases, a credit reference agency has claimed.
Figures from Experian show that although the total rate of fraud on financial products has fallen since 2007, in certain areas there have been big increases in the number of false applications.
Its data shows that the rate of mortgage fraud increased to 38 cases in every 10,000 applications in 2012, up from 35 the previous year, and more than double the 18 cases per 10,000 recorded in 2007.

Nine in 10 cases involved individuals painting a knowingly false picture of their personal circumstances on an application, with the most common action being an attempt to hide a poor credit history. False statements about the applicant's employment status or financial circumstances also featured.
Experian said mortgage fraud cases were highest among the social group made up of middle-aged, middle-class, and skilled working-class individuals.
Over the same period the number of fraud cases involving insurance policies also increased more than two-fold, from 5.44 in every 10,000 cases in 2007 to 12 in every 10,000 in 2012. In this sector, 86% of frauds involved the person applying for the policy or making a claim.
Across the board, Experian said the group responsible for the most fraudulent applications for financial products in 2012 was a group it classifies as "Terraced melting pot". This group, which represents people in routine urban occupations, was responsible for 21% of first-party fraud cases over the year.
The "Liberal opinion" group, which consists of young professionals and well-educated people, came next accounting for 14% of first-party cases. In total, about 70% of financial services application fraud was down to first parties misrepresenting their circumstances.
Experian said it expected fraudulent applications to continue to rise throughout 2013, driven by the ongoing squeeze on household incomes and benefits, and stricter credit and lending criteria.
"As a result of poor or patchy credit, more and more 'non-professional' fraudsters are clearly attempting to ease their position, misrepresent applications or make exaggerated claims over their income and personal finances," said Nick Mothershaw, UK director of identity and fraud at Experian.
"Mortgages, current accounts, insurance and cards will continue to come under pressure from fraudsters keen to get their hands on cash facilities."

Thomas Parkin, Real-Life Norman Bates, Convicted Of Fraud In 'Psycho'-Like Case

AppId is over the quota
AppId is over the quota

"We all go a little mad sometimes. Haven't you?" said Norman Bates (Anthony Perkins) in Alfred Hitchcock's 1960 horror film, "Psycho." In regards to a recent lawsuit, those words have never been more appropriate.

A few weeks ago, Michael Daly of the Daily Beast wrote about a fascinating case involving a man who's been nicknamed the "Real-Life Norman Bates." In a tale of Hitchcockian proportions, 51-year-old Thomas Parkin had beem accused of dressing up like his dead mother in an attempt to secure her $2.2 million brownstone and to cash her Social Security checks.

(Fans of "Psycho" will remember that the film's main character had been impersonating his mother long after she had passed away. Of course, in the movie, Bates was also murdering innocent people, something Parkin was not accused of.)

The trouble began in 1997, when Irene Prusik supposedly signed over her brownstone deed to her adopted son Thomas Parkin (the house was eventually foreclosed on when he couldn't pay the mortgage). However, things really got weird in September 2003, after Irene passed away. That's when Thomas gave the funeral director an incorrect Social Security number for his mother. As Daly reports, this prevented "[Irene's] death from being logged in the federal database and allegedly [allowed Thomas] to collect her continuing Social Security benefits."

Soon after, a pending lawsuit -- one brought forth by Samir Chopra, the man who bought the foreclosed brownstone from the bank -- began to heat up. Chopra wanted Parkin banned from the brownstone. Parkin, however, took his case to the district attorney, painting him and his (now deceased) mother as victims of fraud. But the D.A. was suspicious: He continually asked to meet with Irene Prusik, only to be rebuffed by Thomas, who said she was ill.

Eventually, Thomas Parkin relented, and D.A. investigator Vincent Verlezza went to visit Irene...with a hidden camera. The video, which you can watch over on the Daily Beast, shows Parkin dressed as his mother. The tape would later be used as evidence against Thomas. (Thomas Parkin would later admit to detectives that "I held my mother when she was dying and breathed in her last breath, so I am my mother.")

Last week, Parkin was convicted on 11 counts, including larceny and falsifying records. He can now be sentenced to up to 83 years in prison. Although the NY Daily News states that Parkin was a fan of Bates, his lawyer maintains his innocence: "That could have been anyone," he said, in reference to the person in the video dressed as "Irene Prusik."

For a whole lot more regarding the case and Parkin's background, head over to the Daily Beast.

Coincidentally, a movie about the making of "Psycho" -- starring Anthony Hopkins as Alfred Hitchock and James D'Arcy as Anthony Perkins -- is set to hit theaters in 2013.

[via The Daily Beast b/w Movies.com]

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