Yahoo and a handful of unidentified third parties are being sued for their alleged participation in “syndication fraud” schemes, in which advertisers that paid the search giant to post their ads on related search-results pages and on partner websites had their ads displayed via spyware and adware products, and on sites with similar names to popular Web locales or companies, called “typosquatter” sites, The Washington Post reports.Within the suit, filed in a federal court in New Jersey, the plaintiff charges Yahoo with consistently employing its business relationships with typosquatter and adware websites to build additional revenue during earnings time, according to the Post.The complaint reads, “Not only have Defendants turned a blind eye to abuse of their [pay-per-click] advertising system, but Defendants knowingly have manipulated that system for their own benefit, by increasing the volume of improper advertising displays during financial reporting periods when Defendants were at risk of failing to meet investor expectations.”An attorney for the plaintiff in the case, Ben Edelman, would not disclose their source of information regarding the alleged syndication fraud, saying only that the truth would be exposed should Yahoo decline to settle the case, according to the Post. “Yahoo ought to settle this case, but they ought never have allowed this problem to fester to the extent that it has,” Edelman told the Post.The suit claims that advertisers were defrauded by Yahoo and associates because they paid to have ads displayed next to search results that are triggered by certain keywords, which companies bid for; however, their ads were instead displayed via spyware and adware products on sites with little or no traffic, the Post reports. The advertisers were still charged the same amount as if the ads were displayed in the proper locations, next to related search results only on high-trafficked sites, according to the Post. Direct Revenue and Intermix were named as “spyware vendors” within the complaint, and both companies were recently sued by New York Attorney General Eliot Spitzer for violations of consumer protection laws. For related coverage, read N.Y.’s Spitzer Sues Another Spyware Firm.Yahoo is facing additional “click fraud” accusations in courts in California and Arkansas, according to the Post.Yahoo did not respond to the Post’s inquiries before the story was posted.Keep checking in at our CSO Security Feed page for updated news coverage. -Compiled by Al Sacco Related content feature Top cybersecurity M&A deals for 2023 Fears of recession, rising interest rates, mass tech layoffs, and conservative spending trends are likely to make dealmakers cautious, but an ever-increasing need to defend against bigger and faster attacks will likely keep M&A activity steady in By CSO Staff Sep 22, 2023 24 mins Mergers and Acquisitions Mergers and Acquisitions Mergers and Acquisitions brandpost Unmasking ransomware threat clusters: Why it matters to defenders Similar patterns of behavior among ransomware treat groups can help security teams better understand and prepare for attacks By Joan Goodchild Sep 21, 2023 3 mins Cybercrime news analysis China’s offensive cyber operations support “soft power” agenda in Africa Researchers track Chinese cyber espionage intrusions targeting African industrial sectors. By Michael Hill Sep 21, 2023 5 mins Advanced Persistent Threats Cyberattacks Critical Infrastructure brandpost Proactive OT security requires visibility + prevention You cannot protect your operation by simply watching and waiting. It is essential to have a defense-in-depth approach. By Austen Byers Sep 21, 2023 4 mins Security Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe