What is Click Fraud
Why does it exist
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Why does it exist?

There are numerous reasons. For CPC affiliates, including network and content partners, the obvious incentive for artificially generating clicks is to increase commissions received on the traffic they send. This situation has been exploited to a great extent since Google launched AdSense, the content-delivery platform that allows individual webmasters to publish AdWords ads on their sites and receive per-click commissions on the traffic they generate for the ads. 

Additionally, competing advertisers are driven by competitiveness to "stick it to" their competition by clicking on their expensive CPC ads, to cost them money and potentially knock them out of competition for top positioning, resulting in a lower cost for the term(s) in question.

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