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$200k of fraud activity, but account still in good order!?

Have google gone crazy?

         

MyGen

5:14 pm on Nov 21, 2006 (gmt 0)

10+ Year Member



I've been a google premium publisher for over a year now, and have had an income ranging from between $50k to $100k per month.
Last week I logged into my account to see the 'Your payments are currently on hold' message, and the required action was to e-mail google, which I did.
Just received my e-mail back saying that after an investigation, it was found that there has been over $200k worth of invalid click activity on my account, and it will be deducted from my next payment (Which will be nowhere near that amount, one is to assume it'll be taken over the next few months, leaving me with nothing?) However, they then go on to tell me that my account is in good standing and they look forward to my continued participation in the program.

Surely if your company had been defrauded the sum of $200k, you wouldn't want to co-operate with them anymore? What makes matter more interesting is, over the last 5 months Google have paid out $386k to me, which means over 50% of all my clicks have been invalid. Assuming this has been going on for months and months, why was I never told this during any of the recent and frequent conversations I have with my member of the google optimization staff, especially when the converstaions were about increasing my revenue and optimizing my site?

I hope for certain that this is a decimal point error, but if they intend to deduct over $200,000 from my account over the next few months, I'll be left with little choice but to pull the google ads and replace them with adverts that will actually generate me some income.

Anyone have any thoughts on this matter?

Visi

2:02 am on Nov 22, 2006 (gmt 0)

10+ Year Member



Because Ron...you realize that sometimes the Google does no wrong postings step across the common sense line. If they paid me I they have indicated the clicks were determined to be acceptable, They have no recourse such as the poor comparison of the IRS where I am supplying the information. Like I said, they paid, sue me to get it back...no other recourse for them. They can shut off the account. Keep any monies owed, but short of that.....nothing unless they want to take it to court.

mattg3

2:20 am on Nov 22, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Wow a 52% fraud detection failure ... on that sample size. That's what I would call catastrophic failure.

This story is scary. :\

RonS

3:00 am on Nov 22, 2006 (gmt 0)

10+ Year Member



Like I said, I am not a lawyer. For that kind of money with even the thought of a lawsuit hanging over the OPs head, the OP might wanna run this by his/her attorney, along with the general agreement and any premium publisher agreement that may have been accepted or signed.

But first, I'd talk to my premium rep for help in figuring out what it is that is wrong, and for any help they could give me to combat this problem in the future. This might help to identify what it is in the past that caused this problem.

Very good luck to the OP. I am interested in your result, and would appreciate it if you could keep me posted. I hope it IS a mistake with the decimal point.

[edited by: RonS at 3:04 am (utc) on Nov. 22, 2006]

gregbo

3:54 am on Nov 22, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Assuming this has been going on for months and months, why was I never told this during any of the recent and frequent conversations I have with my member of the google optimization staff, especially when the converstaions were about increasing my revenue and optimizing my site?

Possibly, the clicks had not been determined "invalid" until recently. Click fraud can be generated to look valid. But if new information arrives, such as a botnet discovered to have generated click fraud over some time period, clicks can be reclassified.

gregbo

4:04 am on Nov 22, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Andreals, following your logic, should we all now set aside 50% of our earnings as “insurance” against being sued for any invalid clicks Google may claim in the future?

Yes, you should. This is yet another aspect of the "dark side" of AdSense. The money you made may not be yours to keep.

I like the pawn shop analogy; quite fitting.

jomaxx

4:06 am on Nov 22, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



But if new information arrives, such as a botnet discovered to have generated click fraud over some time period...

Yeah, or a maybe new method of fraud detection being applied retroactively. But it does seem extremely strange for Google to have actually paid out such a vast amount over such a long period of time before discovering the error. That's why you should get as much information as possible (and report it back here, TIA).

gregbo

4:12 am on Nov 22, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



MyGen, my condolences. You run an awsome site. I don't think the take-back of earnings is right. I can't believe more than half your earnings would be fraudulent, and Google only finds this out now.

Well, they can't eat the costs of the "invalid" clicks; that would cut into profits; no more US $500+ shares. If they decide to smartprice some publishers, that will generate howls from the smartpriced. What are they supposed to do?

The nature of click fraud is such that clicks can be easily made to look legit. They might be reclassified if additional information is discovered, such as a fraudulent botnet or click ring.

gregbo

4:16 am on Nov 22, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



But it does seem extremely strange for Google to have actually paid out such a vast amount over such a long period of time before discovering the error.

Why? The clicks probably didn't look questionable enough to raise flags. If the OP had been paid less over that time period, the OP might very well have complained about smartpricing.

jomaxx

4:27 am on Nov 22, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Oh please. What part of this story is not strange? The large dollar amount, the fact that this is the first time anyone has reported Google deducting invalid click revenue retroactively, Google not banning the OP despite a very high proportion of invalid clicks.

gregbo

4:34 am on Nov 22, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



OK, so explain what criteria G should have used to determine that these clicks were in fact fraudulent earlier on.

darkmage

4:39 am on Nov 22, 2006 (gmt 0)

10+ Year Member



I don't want to sound like a panic merchant. My first thoguht was why didn't the account get banned? Well, who knows? But...if I was owed 200K like Google, I would try to get the money back through trade - then cut them off. That is why I think the account wasn't banned. I am guessing that if it was a smaller account, I think it would be appearing under the 'I got banned' threads.

jomaxx

5:01 am on Nov 22, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Gregbo, what's your point? Are you arguing the story ISN'T strange? It is.

bts111

5:34 am on Nov 22, 2006 (gmt 0)

10+ Year Member



It is a very strange story.

mrSEman

6:04 am on Nov 22, 2006 (gmt 0)

10+ Year Member



Let's do a little math shall we...

G says you owe them $200K for invalid clicks. This means the invalid clicks your site generated over the past few months amount to $400k+. wow

You say that you're earning between $50 to $100K ($75k avg.) a month and that you are estimating 50% of the clicks were invalid.

Now G wants their money back... I heard someone say on this thread that it could take you 4 months to pay them back and start earning again.... Not by my count. If G "fixes" whatever problem that caused the invalid clicks, your earnings will DROP by 50%. At that rate it will take you 5.3 months before you make another penny. If they or you don't fix the problem, you will keep aon accumulating more debts every month for invalid clicks.

Whose to say that, out of the readjusted $37500 of monthly revenue you have left, G wont find more problems now that you are under the microscope? They could easily find more "invalid clicks" as you are paying back your debt and therefore extending you Penance.

I say if you go down this road, be prepared for no revenues for at least 6 to 9 months.

Advice: #%$^& man I don't know what to say.... What a predicament! If I was in your shoes and G didn't come up with a solution where you could still earn, I think I may dump AS for "Punch the monkey for a free Ipod" ads and pay the mortgage.

gregbo

6:12 am on Nov 22, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Gregbo, what's your point? Are you arguing the story ISN'T strange? It is.

Strange, yes. Implausible, no. But I've been saying all along that fraudulent clicks can be made to look legit. So it is quite possible that G thought all along that some clicks were legit, until they came across some new information that caused them to reclassify some clicks. This may just be the first of many accounts that are retroactively flagged for "invalid" clicks that weren't caught earlier.

ann

6:36 am on Nov 22, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Before the below, this statement is found:
Finalyzed earns are posted....etc.

[google.com...]

Please note that if a publisher's account is found to be in violation of our Terms and Conditions or policies, we may at any time withhold payment (beginning from when Google initiates its investigation of potential violations), charge back the publisher's account, and/or refund advertisers for clicks received on the publisher's site or AdSense for search results page. In addition, if a publisher is past due on any payment to Google in connection with the Google AdWords program, we reserve the right to withhold payment until all outstanding payments have been made.

For a complete description of payment terms, please refer to the AdSense Terms and Conditions.

Ann

mzanzig

9:51 am on Nov 22, 2006 (gmt 0)

10+ Year Member



If this story is true (how can we know?), then it is a strange and scary story. However, I can hardly imagine that Google would admit that there is a failure rate >50%. If it WAS like that, they'd probably just shut down the account and keep quiet. If the word would gets out, it would surely be big news in our industry. So why take the risk? 200,000$ is not an amount they should worry about. But it can turn into a PR nightmare.

On the other hand, should the story be true, then I wish the OP all the best fighting for the money. It can't be true that Google just "discovers" click fraud of that volume and demands money back. As one other poster in this thread said - "shall we all put away 50% of our revenues as insurance?". I don't think so.

miguelito

10:08 am on Nov 22, 2006 (gmt 0)

10+ Year Member



and i should imagine that Google Adsense team is absolutely delighted that such a high profile and profitable client with such an easily identifiable story is discussing all this in open forum, hold on to your hats!

mattg3

10:56 am on Nov 22, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I just can't see why myGen should be lying given that he is a while on this forum, so I am not sure if the doubts about this story are true.

ann

11:15 am on Nov 22, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



If I understand what I read then the clicks that passed muster was legitimately generated from real people clicking but not in attack mode.

Those were deemed fine BUT then a TOS violation cropped up (was discovered) on site that would allow Google to recoup a percentage of clicks they deemed right as measured against how long the violation was in force, ie, not caught by Google but put there by the webmaster.

Some people cannot bear to tell the truth on themselves so
I think it is another case of 'I did no wrong, it's all Google's fault'

Tropical Island

12:12 pm on Nov 22, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Those were deemed fine BUT then a TOS violation cropped up (was discovered) on site..

Ann could this also not have been a concerted effort by a competitor of some regularly appearing ad or of the OP to run out the budget or damage the OP's AS account.

We have to give him the benefit of the doubt that he is indeed an innocent victim here.

In either case Google would have the right to refund the advertisers and re-coup the payments.

malachite

12:14 pm on Nov 22, 2006 (gmt 0)

10+ Year Member



I might be missing something here (highly likely, I'm not properly awake yet), but doesn't Google use the period between month end and payment to assess whether the previous month's earnings are kosher?

When G goes ahead and pays out, I always thought that's a thumbs up/stamp of approval that everything was ok for the preceding month, and all clicks had been validated?

Either there's something really odd going on here, or we should all start worrying that our payments can be clawed back at any time, for any reason.

Andreals

1:22 pm on Nov 22, 2006 (gmt 0)



The only thing that makes this story plausible at all is the high dollar amount which would make it "the exception that proves the rule." It is inconsistent with my own similar ongoing experience but similar enough that I tend to believe that *something* disturbing is going on here.

Like all of these stories we don't have enough information to tell what's really happening, and probably never will.

But whatever it is, the need for accumulating as large a liquid cash reserve as possible is once again the lesson.

As a desert dweller I take my cue from the cactus plants around me--they can survive long dry spells and other insults by prudently accumulating water when it is available. If you don't know what a diversified portfolio of investments is, find out TODAY and begin one. Whether or not you have a crisis to meet in the future it will someday make you happy, that is certain.

ann

1:23 pm on Nov 22, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



When you are paid the money is deemed earned and non fraudulent. In otherwords no click fraud.

What happened here has to be an 'in house' problem to allow Google to demand repayment. It was possibly caught with a human review of the site. In house Tos violation appears to be the ONLY way it could happen.

Ann
Just my take on it according to Googles rules.

trannack

2:04 pm on Nov 22, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I wonder whether they are opperating under the same sort of rules as a bank. It used to be the case (can't speak for now, as it is possible the laws have changed in recent years), if a bank credited your account mistakenly with money. If you kept the account open - perhaps even spent this money, they legally had the right to claim it back - even if this left you in deficit.

However, if you saw your account credited in error. Withdrew all monies and closed the account, they could not get the money back. Perhaps this is the same with Google. If he closed his account immediately, stopped showing adsense adverts, I wonder whether they would legally be able to recoup? Anyone?

darkmage

2:28 pm on Nov 22, 2006 (gmt 0)

10+ Year Member



Hey Andreals
You may want to check out
EXCEPTION THAT PROVES THE RULE
[worldwidewords.org...]

'These days it is often used sweepingly to justify an inconsistency. Those who use it seem to be saying that the existence of a case that doesn’t follow a rule proves the rule applies in all other cases and so is generally correct, notwithstanding the exception. This is nonsense, because the logical implication of finding that something doesn’t follow a rule is that there must be something wrong with the rule.'

Freedom

2:33 pm on Nov 22, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Isn't it a little strange that this thread has now hit 57 messages and the OP has not made a post since his original one?

Andreals

5:01 pm on Nov 22, 2006 (gmt 0)



darkmage:

I used "the exception that proves the rule" in its idiomatic proverbial sense which is generally understood and accepted. Yes, it can be parsed in such a way that it becomes nonsense, but that is true of most natural language which is almost always ambiguous and equivocal. People with too much time on their hands just love to waste my time this way.

I intend to continue using this proverb in its generally accepted sense. But for those who insist on nit-picking let's call it a "statistical outlier that does not change the overall picture."

[edited by: Andreals at 5:04 pm (utc) on Nov. 22, 2006]

sailorjwd

5:55 pm on Nov 22, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



If the poster had no involvement in the click fraud then, if Google was straight-up company, they would eat the cost because it was their system that failed.

As it is it is like Google saying: if it wasn't for you and your website we would not have incurred these loses - so pay us. There's google for ya.

MThiessen

6:21 pm on Nov 22, 2006 (gmt 0)

10+ Year Member



>>>I'll be left with little choice but to pull the google ads and replace them with adverts that will actually generate me some income.
<<<

If you do that without knowing the source of the invalid clicks, whoever you join will encounter the same problem.

And to those of you that would "love to have that problem" no you wouldn't. You earn a great deal of money you get used to it, you depend on it, and when large sums are pulled aways from you it can be far more emotionally devastating then loosing a relatively small amount, even if the percentages are the same.

The OP is most likely silent now at Gs request I would assume. This is likely a "classified" exchange of information and not intended for the public.

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