Unraveling the Web of Pay-Per-Click Deceit

Market Wire, January, 2006

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.

Contact: Clarence Briggs 910-273-8300 Alex Lekas 910-273-8374