After seeing an increase of shady organic keyword results appearing in Google Analytics we identified the referring Hostname. After adding the exit page to hostname we discovered someone cloned our site on multiple subdirectories of the offending site, replacing all of the links with urls nobody in their right mind would intentionally click on.
I realize this is a similar question to "Parallel website running a copy of my original website" and will take the necessary steps to prevent hotlinking, but I'm not concerned about copyright. I'm more interested in learning about the security and protecting our customers aspect of this.
Why would somebody go through all this trouble to imitate our site in this way and should we be concerned?