Fraud like this will take care of itself. Even though someone stated that the site was a joke I am not even sure that someone could be prosecuted for clicking on ads....now, the person hiring them would be breaking the law and committing fraud, but I am not so sure that charging someone to click ads is against the law.
Anyways, most people worry that PPC is in jeapardy because of potential fraud like this, but it really isn't. At the end of the day all PPC is really just a giant Affiliate Program that looks different. At some point the advertiser needs end-users, and they are only going to pay if they get those users.
The market kind of takes care of itself, and people who violate their TOS should be expelled immediately. But it really doesn't matter in the long run because the worst case scenario is that large Affiliate Programs would take over and your payments would be much bigger than ten cents a click, but would occur less often.
If you have good names that get decent type-in traffic then you never have to worry about a thing.....you will always find some revenue somewhere.