Earlier quoted context omitted.
That is exactly the opposite definition of fraud. From Merriam-Webster: a : deceit, trickery; specifically : intentional perversion of truth in order to induce another to part with something of value or to surrender a legal right b : an act of deceiving or misrepresenting : trick Where was he deceiving or misrepresenting the situation? The fact is that there is no tractable way for Google to separate people who are i…
> Where was he deceiving or misrepresenting the situation? He is deceiving the advertisers. They are paying for people interested in the ad, thats not what they are getting. > The fact is that there is no tractable way for Google to separate people who are interested in supporting an ad-driven business from those who really are creating false ad traffic for financial gain. Correct, but we can look at the average CTRs…
The truth of the situation is: you click, I get paid. There is no moral value attached to such an action in and of itself. If anything, it is Google's own fault for putting itself in a position for charging advertisers to place ads in a medium it does not and cannot control. It is the very definition of a moral hazard.
http://banking.about.com/od/loans/a/MoralHazard.htm
What makes it particularly troubling is that Google not only owns the ad network but also controls the content distribution in the form of Youtube.
Google prides itself as a data-driven company, and this "false positive" is likely due to a "statistical likelihood" of click-fraud, but that's small comfort to a small business owner who does not have the resources to contest or appeal such a heavy-handed measure.