What I don't understand about domain masking is how the offender gets paid? Surely the owner of the 'borrowed' domain gets paid instead?
Evil person creates a (simple, weak) good site, and sells ads on it.
Advertiser pays Evil person to show ads on simple, weak, good site.
Evil person then displays those ads (via iframe) on Pirate Bay.
Advertiser thinks the end-user visited Good site.
The ads are not fraudulent per se -- real humans are seeing the ads and interacting with them.