
- Image via CrunchBase
In anticipation of a planned announcement Wednesday regarding click fraud, Microsoft has filed at least two lawsuits against companies it believes are mixed up in the illegal manipulation of online-advertising commerce.
Microsoft on Monday implicated two established websites, RedOrbit and HelloMetro, in two fraud complaints filed in U.S. District Court for the Western District of Washington in Seattle. Microsoft alleges the defendants used malicious means to artificially increase the number of times that advertisements on those sites were clicked.
The defendants, Microsoft claims, used the software company’ adCenter and pubCenter platforms to surface advertisements on their websites. When a Web user clicks one of those ads, money is automatically transferred from the advertiser’s account to the ad publisher’s account.
Click-fraud perpetrators can use automated computer scripts, deploy malware, e-mail spam links or hire people to generate an inflated number of clicks on online advertisements. Such practices bring extra money to the ad publisher, and fraud is suspected when the action is hidden.
In an interestingly timed move, Microsoft filed the lawsuits two days before it announces “some significant news,” as the company has said, about click fraud trends. Seattlepi.com has learned that the announcement will provide better context for the lawsuits, though it is unclear exactly what the news will be.
A spokesperson said the announcement will also relate to a third legal filing, but Microsoft would not elaborate. Stay tuned to The Microsoft Blog on Wednesday for more information.
In the RedOrbit case (PDF), Microsoft names the company, founder Eric Ralls and 10 “John Does” as defendants. RedOrbit.com is a Tyler, Texas-based online news site that publishes articles, photos and videos about science, space, technology and health.
via Microsoft cracks down on ad click fraud.
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