Considering how Google shout about the way they like to protect advertisers, I found this just a little bit interesting. One on the ads that appeared on my site was for Avast Anti Virus. The URL showed as http://avast-2007.com. If you go there you'll see a disclaimer at the bottom: So! I went to http://avast.com where I found this: As a publisher I'm unhappy that Google put ads on my sites which allow my visitors to be scammed like this. What do you think?
I agree. Google are always the first to take the moral high ground when they want to ban a publisher, but they'll happily accept money from AdWords crooks. That's business for you.
Google cannot manually check each and every ad created within AdWords every single day. It has a basic blacklist of words, such as gambling and porn keywords, but it won't filter out other keywords. I think there is no system that can be protected from such kind of activity, so authors of software\services that noticed such activities must contact google to reserve their keywords. On the other hand they will cut many honest affiliates selling their products. I think that adwords must develop some kind of a digital key, or something of that nature.
It should be reported to Google Adsense Team. You should try to contact them directly to let them know your situation. You can email them at ( adsense-support @ google.com ) or there is a contact form available at www.google.com/adsense/support/bin/request.py