Cloaking is a smart yet risky technique used to present different content to the search engines than a human visitor would see. It is a Black hat SEO technique employed to present dissimilar content for search engine and human visitors. A totally deceptive search engine optimization technique, it actually cheats search engines in order to rank well for desired keywords.
The Penalties for Cloaking
Cloaking is strictly outlawed in most search engine policies. Detection of any cloaking activity may result in banned website.
Google take on Cloaking
In order to main the high standard of accuracy and quality of the search results, Google may permanently ban from our index any sites or site authors found to be engaged in cloaking activities to change their search rankings.
For cases where search engine is not able to automatically detect a website using cloaking practice and the competitors of the same can send a spam SEO report to the major search engines. On these request research would be done and if found true, action to ban the Cloaking would be taken.
However, irrespective of these strict threats and warning, experts suggest that a good number of methods are known today, under the heading the cloaking, out of which, many still remain undetectable by the search engine.