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Direct,
My company had a significant problem with click fraud several months ago, with very similar symptoms to the problem you had. Most of it came from the crummier second-tier PPC engines like Kanoodle, FindWhat, and some others, but some of it did come thru Overture. We told them about it (through the company that was managing our PPC at the time) and they issued us a credit for the amount they estimated we were charged for the false clicks. It was a surprisingly painless process, although that may have been because the managing company had a contact with Overture or something. I would say that if you have log files that could help point them to where the bad traffic is coming from, they are quite likely to refund at least some of the money you wasted. Hope that helps!
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