Microsoft takes action to stop click laundering

Microsoft is taking action against someone whom it suspects of click fraud. Click fraud is when someone clicks repeatedly on online advertising links. Whenever someone clicks on one of those links, Microsoft, Google or another advertising network service provider collects money from the advertiser on a per click basis and shares it with an affiliate, which is often the owner of the web site on which the advert appears. The fraudster could be the affiliate itself or a competitor of the advertiser. Microsoft, Google and others have algorithms to try to detect search fraud, but they are not always successful. Much of the fraud can go undetected. Microsoft is concerned that the fraud can undermine confidence in online advertising and harm its revenues, not to mention be unfair on the advertisers.

A new form of click fraud has now arisen and Microsoft is determined to stamp it out. It is called click laundering, because it is similar to money laundering in that the identity of the wrong-doer is disguised in order to hide the criminal activity. By disguising the origin of the clicks, this makes it harder for Microsoft to detect the fraud as it is hard to identify whether an unusual amount of clicks are coming from one source. Microsoft has started a legal action against someone in Texas whom Microsoft believes is behind click laundering, but they deny any wrong-doing.