Good read. On reflection, this seems to be a good idea. I mean, if I were poor and needed money, I would do everything in my power to get that money -- especially if I had a family to support. However ... Does the status of one's own personal situation provide enough justification to defraud a multibillion dollar company? If Google just stood by, did nothing, and continued to hand out free money to EVERYONE, then you can bet that they wouldn't be a multibillion dollar company anymore. If click fraud continued, there would be many more jobless people out there in the end. Therefore, personal justification has the potential to impact the livelihood of other people. In other words, my isolated behavior can negatively influence other people -- the advertisers. This means that click fraud is still fraud, and this fraud, if left open and unchecked, will impact a lot of other people for the worse. Click fraud, however, is not limited to one country.
I wouldn't be surprised to see if advertisers bid low for indian targetted adsense ads just to be 100% sure that their money is not wasted on high fradulant clicks. At the same time, being an indian (now live abroad) would like to clarify that all indians are not the same. So please dont stereotype. There are a bunch of good honest indian webmasters such as Amit including me. I guess google would be increasingly target websites with reciprocal traffic and traffic from unknown sources. Of course the traffic pattern is important. Imagine you have a website getting 3000 PV per day all direct or referral from other websites is enuff to say there is something fishy. If your websites has any unique content, you should atleast get 10% SE traffic of 3000 PV. These dishonest people are not only cheating the system but screwing up income for other since advertisers would be more cautious to bid any high amount considering the click fraud.