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I monitor the clicks received from these PPC providers closely and notice that a large number of them have referers which point to fake search engines.
Basically when you go to their URL you get a search form and when you search for anything you either get no results, go back to the home page or get redirected to an adult site.
I would be guessing others would have noticed this too?
I notified the PPC provider once but it really is a hassle having to extract the relevant lines out from my logs and describe the clicks received when I'd rather be working on my site.