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Indian-origin researchers propose new method for preventing pay-per-click fraud

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New York: Indian-origin researchers have proposed a new method for detecting fraud from the pay-per-click model – a pricing model used for online advertising.

“If somebody likes something, they can click on the ad and go directly to the site. Hopefully, that translates to a sale. No matter whether it does or not, the advertiser pays for these clicks. In the pay-per-click model, if people or bots are clicking fraudulently, then the advertiser is losing money,” said Suresh Radhakrishnan, professor at the University of Texas in the US.

The researchers have proposed a way to support technological improvements to check fraud which, they said, is affecting the advertising industry as a whole.

The study considers identifying click fraud as a three-stage process: the service provider — for example, Google or Yahoo — classifies clicks as fraudulent or not.

Then, the advertiser does the same, using his technology. If there is a disagreement, the service provider examines further and its conclusion is considered binding.

The problem with the new approach is intuitive. For a service provider, if he gets paid, it doesn’t matter whether it’s a valid click or a fraudulent.

But the advertiser would want to verify whether the click is fraudulent or not. Even if the click is valid, the advertiser may say that it’s fraudulent because of the pay-per-click cost, the researchers explained.

To solve the problem, the researchers suggested that an independent third party investigate and flag fraudulent clicks when a conflict arises between the advertiser and the service provider.

“In the long term, for the pay-per-click model to survive, you will need to make sure both parties are happy, so technologies will have to get to a point where click fraud is minimized,” Varghese Jacob, vice dean of the Naveen Jindal School of Management.

“People will have to invest in such improvements. Otherwise the pay-per-click model may not be sustainable,” Jacob noted.

The findings appeared in the journal Information Systems Research. (IANS) (Photo: http://www.lifehack.org)

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Punjab National Bank detects $1.8 bn fraud at a Mumbai branch, Links to Nirav Modi

Punjab National Bank, the second largest public sector bank in India

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Punjab National Bank is India's second largest bank. Wikimedia Commons
Punjab National Bank is India's second largest bank. Wikimedia Commons
  • Punjab National bank has detected a $1.8 billion fraud
  • The fraud happened in their Mumbai branch
  • The matter has been referred to law enforcement

Punjab National Bank, the second largest public sector bank in India, has detected a $1.8 billion fraud in one of its branches here, the bank said in a regulatory filing to the stock exchanges on Wednesday.

Punjab National Bank experiences a fraud of $1.8 bn.
Punjab National Bank experiences a fraud of $1.8 bn.

“The bank has detected some fraudulent and unauthorised transactions (messages) in one of its branch in Mumbai for the benefit of a few select account holders with their apparent connivance,” the filing by the bank said.

It had quoted the quantum of such transactions was to the tune of around $1,771.69 million (around Rs 11,515 crore).

The amount of fraudulent transactions is equivalent to eight times the bank’s net income of about Rs 1,320 crore ($206 million).

Also Read: Raghuram Rajan: The Man Who Revolutionized The Indian Banking System

This case has happened at a time when the Indian banking system is already grappling to tackle its swelling non-performing assets.

“Based on these transactions other banks appear to have advanced money to these customers abroad. In the bank these transactions are contingent in nature and liability arising out of these on the bank shall be decided based on the law and genuineness of underlying transactions,” the filing said.

Punjab National Bank's Mumbai branch is now under high scrutiny. Wikimedia Commons
Punjab National Bank’s Mumbai branch is now under high scrutiny. Wikimedia Commons

The bank informed: “The matter is already referred to law enforcement agencies to examine and book the culprits as per law of the land.”

On February 5, the Central Bureau of Investigation had booked billionaire diamond service provider Nirav Modi, his brother, wife and an enterprise companion for allegedly cheating Punjab National Bank of over Rs 280.70 crore last year.

Also Read: Con man in Delhi Duped Amazon for over Rs. 50 Lakh; Arrested by Delhi Police for Fraud

Following the complaint, the CBI registered a FIR under the Indian Penal Code sections related to criminal conspiracy, cheating and provisions of the Prevention of Corruption Act against the four.

The stock of Punjab National Bank was trading at Rs 149.20 per share, down 7.70 percent at the BSE at 1.59 p.m. IANS