Fraud would imply malice and criminal intent. What is criminal about paying for fake followers?
No. From MW: * intentional perversion of truth in order to induce another to part with something of value or to surrender a legal right * an act of deceiving or misrepresenting In other words, yes, fraud, your ticket to the 8th Circle of hell.
Companies need to do their research and ask the right questions before they part with their money...