Management Information System (MIS) Practice Exam

If a former employee clicks on an ad to inflate costs out of anger, what type of fraud is this?

1. Competitive click fraud

2. Irate click fraud

3. Network click fraud

4. Dedicated click fraud

The correct answer is: Competitive click fraud

The scenario described involves a former employee who intentionally clicks on an advertisement to inflate costs, presumably as an act of revenge or frustration. This directly aligns with the definition of competitive click fraud, where individuals or entities deliberately click on paid advertisements to generate fraudulent costs for another party—often competitors. In this case, the former employee's actions can be seen as malicious intent aimed at harming the business financially. The motivations behind such actions typically involve personal grievances or competition, making it a textbook example of competitive click fraud. This kind of fraudulent activity can significantly impact the advertising costs for the business, leading to wasted marketing budgets and reduced return on investment. The other types mentioned—irate click fraud, network click fraud, and dedicated click fraud—do not specifically encapsulate the scenario at hand. Irate click fraud might suggest a personalized act out of anger, but it's not a widely recognized term in advertising fraud literature. Network click fraud usually refers to organized efforts or syndicates exploiting click-throughs, while dedicated click fraud refers to a systematic approach by fraudsters to generate revenue from click fraud. Hence, focusing specifically on the motivations and context of the action, competitive click fraud is the most accurate descriptor in this situation.