Microsoft Sues Family In 'Click Fraud'

Microsoft has sued three people for allegedly clicking their own ads through Microsoft Ad Center for Publishers service. The fraudulent clicks allowed the three to make hundreds of thousands of dollars.

The lawsuit was filed in Seattle's federal court and it named Eric Lam from Vancouver, BC, his brother Gordon Lam, and his mother Melanie Suen as the defendants. It also stated that the three had made over $250,000 USD in their scam. Microsoft is seeking $750,000 for damages and hopes to make a believer out of everyone else who attempts to fraud its advertising services.

Web site publishers that signup for Microsoft's Ad Center product generate money from ads that they run for Microsoft on their personal web site. Publishers rely on visitors to click on the ads to make money per click. Microsoft alleges the three clicked their own ads and/or arranged for others to click their ads repeatedly.

The three used a series of proxy servers as away to mask their identity but they were easily tracked down as they had targeted two specific keywords; virtual currency in World of Warcraft and keywords associated with auto insurance.

I guess let this be a lesson to everyone that Microsoft will not standby while you fraudulently take advantage of its advertising service. Could Google be the next one to crack down on fraudulent activities?