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How To Protect Yourself From Click Fraud & Pay-Per-Click Scams

by Charleen Montano June 6, 2022

Have you ever thought about the way that ads on your site work?

I mean, have you ever thought about how they’re targeted? And how they’re displayed? And how they’re paid for?

These questions have been on my mind a lot recently, and I’m sure they’ve been on yours too. Because I know there are people out there who are trying to understand this stuff, and that’s why I’m here today to discuss all this.

We’re all busy, but you know what’s even busier than you? The internet.

The internet is an incredible place where people can connect and share ideas, but it’s also a hotbed of fraud. From fake social media accounts to fake news stories, digital fraud has become a major issue for businesses that rely on the internet to connect with their customers.

In this blog post, we’ll talk about a particular type of fraud called click fraud and how you can avoid it!

We’ve all seen it: the spammy link that pops up in the comment section of a site, or the ad that shows up on the sidebar of your favorite blog. You know what we’re talking about—those ads that are clearly being used to trick you into clicking them and then leading you to an awful place—you know, like porn sites and scammy websites.

The thing is, these aren’t just annoying; they’re also dangerous. They’re called click fraud and they’re one of the most common types of cybercrime today.

Here we go;

What is Click Fraud?

Click fraud is a form of online advertising fraud that involves clicking on an advertising link to generate a charge per click. Click fraud can take place on both pay per click and pay per impression platforms, and it is a growing problem for advertisers.

Click fraud can occur when an automated computer program or bot clicks on an ad to generate a charge per click. This type of activity is often referred to as “clickbait” or “click farming.” It’s also possible for humans to engage in click fraud by clicking on ads to generate revenue.

Types of Click Fraud

There are six main types of click fraud, including:

  1. Session-Based Click Fraud
  2. Fake Traffic (Non-Human) Click Fraud
  3. Impression Fraud
  4.  Affiliate Fraud
  5. Domain Spoofing
  6. Malware Click Fraud

Let’s explore each in turn.

  SESSION-BASED CLICK FRAUD

Session-based click fraud is a form of click fraud in which a criminal uses multiple devices and IP addresses to generate fake clicks within the same session. This can be done by using multiple browsers, running multiple instances of the same browser, or using virtual machines (VMs) to generate fake clicks. These devices are often located in different countries and may be shared between several criminals who are working together.

The criminals use these devices to generate false impressions, clicks, or other metrics that advertisers pay for. The criminals then receive payment from advertisers while they secretly profit from the ad revenue.

 FAKE TRAFFIC (NON-HUMAN) CLICK FRAUD

Fake traffic refers to non-human (bot) traffic that comes from automated software designed to imitate human behavior. This bot activity can take many forms, such as clicking on ads or filling out forms, but the ultimate goal is always to defraud advertisers by tricking them into thinking they are reaching an audience of real people.

The problem with fake traffic is that it doesn’t convert into real sales or leads. Instead of generating revenue, advertisers are paying for clicks on ads that don’t actually drive any value back to their business. This can lead to a downward spiral of wasted money and lost revenue if it isn’t caught quickly enough.

 IMPRESSION FRAUD

Impression fraud is when someone buys or sells fake impressions through bots, click farms, or other methods. It can be done to boost a company’s revenue, but also to make it seem like a business is more popular than it actually is.

Impression fraud can also happen on Instagram and Pinterest, as well as Facebook. For example, when someone buys fake followers on Instagram or Pinterest, they might not actually see what posts are being shared with them — but their account will still show that they have thousands of followers nonetheless.

 AFFILIATE FRAUD

Affiliate fraud, also known as affiliate marketing fraud, is a form of Internet fraud that occurs when a website owner pays an affiliate to advertise the website and then does not ensure that the affiliate properly discloses whether he/she has received payment for the advertisement.

Affiliate marketing is a form of internet marketing where an online merchant pays commissions to their affiliates for each visitor or customer brought to their website through an affiliate link. Affiliate marketing programs are generally free to join and sign up for. The merchant can then track visits and sales, and evaluation of each visitor or customer by using cookies and other techniques. These techniques may include writing unique content or copy, placing unique links on their site, and/or using different forms of advertising.

 DOMAIN SPOOFING

 Domain spoofing is a type of phishing attack that attempts to steal information from users by tricking them into thinking they are at a legitimate website. For example, a spoofed email address could look like this: <companyname.com>@domain.com.

Domain spoofing is one of the most common types of phishing attacks because it’s easy for attackers to do and hard for users to detect.

 MALWARE CLICK FRAUD

Malware click fraud is a type of ad fraud that occurs when malware that installs on a user’s computer passes clicks on ads. This type of malware can hijack the user’s mouse cursor, or be installed as part of an ad network to generate false impressions and clicks.

Malware click fraud is one of the most common types of digital advertising fraud, especially in mobile advertising. The practice has become more prominent as advertisers have shifted their spending toward mobile devices, where it’s harder to detect and prevent.

Malware click fraud can be difficult to detect because it doesn’t follow traditional patterns that can be detected by AI or machine learning algorithms. In most cases, it requires manual investigation by humans.

The first step in preventing malware click fraud is creating a comprehensive measurement program for your campaigns — especially if you’re using programmatic buying methods or running retargeting ads. Here are some best practices:

Use third-party measurement tools like Google Analytics to ensure you’re getting accurate data from your ad campaigns

Use at least two measurement tools to help identify discrepancies between them.

Common Click Fraud Scenarios

Real users are being paid to click on ads on your site (click farms).

Your site is infected with malware that is clicking on ads automatically without user interaction.

A competitor’s site has been hacked into and is clicking on your ads, driving up costs without any return benefit to you.

Organic search engine results manipulation (SEO) – Search engines like Google rely on complex algorithms to determine which sites appear at the top of their search results pages when certain keywords are entered by users. Some SEO experts have found ways to manipulate these algorithms so that their websites appear higher than they should in organic searches for certain keywords — even if those websites don’t actually contain any relevant information related to those terms! This type of click fraud can cause serious damage.

Ad stacking fraud, where multiple ads are displayed on one page so that each time a user clicks on an ad it counts as a separate action and may generate multiple payments from advertisers to publishers.

Botnet click fraud, where bots are used to generate fake clicks on advertisements.

How to Prevent Click Fraud on Your Website

Click fraud is a pain in the neck and often what makes it difficult for entrepreneurs– it’s a common problem for advertisers, but there are steps you can take to prevent it.

Here are five ways to stop people from clicking on your ads and wasting your money:

  1. Make sure your website is secure.
  2. Use an ad blocker like Google Chrome’s AdBlocker or Adblock Plus.
  3. Monitor your traffic and look for suspicious behavior (for example, someone who clicks on 20 ads in a row).
  4. Use a one-time password system that requires users to enter a unique code every time they log in to access account information (this prevents bots from automatically filling out forms).
  5. Set up filters to block suspicious IP addresses and other patterns of activity (for example, if someone tries to click on an ad 10 times within five minutes).

Protect Yourself Through Pay-Per-Click Management and Consulting    Services

Pay-per-click management and consulting services are a great way to protect yourself from the costs of click fraud. Pay-per-click services include:

  • Online marketing strategy development

Online marketing strategy development is a vital component of protecting yourself through PPC management. It’s important to have a plan for your online marketing efforts so that you are not left scrambling to come up with ideas on the fly. This will help you avoid making bad decisions that could lead to wasted money or lost customers.

  • Keyword research

A keyword research report will tell you which keywords are driving the most traffic to your site. You can then choose which ones are most important for your business goals and use them in your ad copy.

The more keywords associated with your business, the more likely it is that people will find you. That’s why we recommend having at least five unique keywords associated with every ad campaign you run—and if possible, even more than that!

  • Pay-per-click (PPC) management and optimization

Optimization involves fine-tuning your PPS campaigns so that they perform better over time. An experienced PPC manager will keep track of how each campaign is performing compared to its goals and make adjustments as needed in order to improve performance over time.

  • Web analytics reporting

PPC campaigns are all about testing different keywords and ads to see what works best for your business. To do this effectively, you need to be able to track how well your ads are doing across a number of factors including conversion rate and click-through rate (CTR). A good web analytics tool will allow you to see which ads are performing best so that you can continue to test new variations against those that work well.

Learn More About Getting a Website for Your Business and How to Safely Run It

If you want to learn more about getting a website for your business, and how to safely run it, we’ve got you covered.

We know that there’s a lot of bad information out there about how to do this stuff, and we want to make sure that you don’t fall for any of it. We’ll help you understand what goes into making a great website—and how to do it yourself if you don’t feel like shelling out the cash for someone else to do it!

We’ll also show you how much safer it is to run your own website than rely on other people or companies to run it for you.

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