How Adsense Works? How Can Adsense Ban People And Generate Revenues?

There are different ways by which google detects invalid clicks and thus disable your account.

1) when you click on your own ads on your site.
2) when your crt click through rate is too high or it is not stable and keeps on fluctuating,then this is detected by google and chances of getting banned is high.

what is crt? how does it work?
It means click through rate. suppose your site is viewed 100 times and only one time your ads have been clicked than your crt will be 1%.It is seen that crt should be stable at around three percent ie at every 100 visit to your website only 3 clicks on ur advertisements.

Does it mean that higher crt means getting banned from adsense program?
No it does not mean getting banned but it dos mean that you have to take care that your crt should not fluctuate frequently ie if your crt is 10% on one day on other day it should not increase hastily to 70% if this happens any ad programs would be quiet suspicious that you are using any hitbot scripts or are member of traffic exchange program.

what is ecpm in adsense site?
eCPM = earnings divided by number of impressions multiply by 1000.

What is eCPM used for?
It is used to gauge the effectiveness of your ads.If you are getting very high eCPM, but a very low CTR, your earnings may have been driven up by a lot of invalid clicks from just a few impressions. This may cause AdSense to examine your account closely. However, a high eCPM with a low CTR may also mean that your site is getting a lot of high paying ads because you have keywords which attract high paying ads, or have optimized the color and the positioning of your ads. earnings=eCPMxPageImpressions/1000

Most of the times google gives you a warning when they detect an invalid clicks on your site but in some cases the straight away disable your account your adsense account can also get banned if they found you are violating there terms of service. but even google can go wrong at times.what happens when google wrongly bans your site?

Resource taken from

http://www.adsensehelp.110mb.com