Can malicious porm traffic - can it hurt my SEO?

Hi Everyone,

For a week+ now my site is polluted with a big volume of low quality traffic from popup ad networks - mostly on porn sites.

I suspect that a competitor is trying to damage my SE rankings by driving huge amounts of adult related users to my site with pop under traffic (PPV).

This is about 60% of my traffic now and increasing. 

Can this hurt my site's SEO?  

Any idea what can I do to prevent this from damaging my site and the hard work I invested in it?

Thanks!

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Malicious ad traffic aims to hurt our SEO - Please help

Starting yesterday We are getting thousands of hits from porn sites and ad networks that my site has nothing to do with.

Our site has nice organic rankings and get a decent amount of traffic.
However, It seems that someone malicious (probably a competing site) started campaigns on low quality ad networks like PPV campaigns that popup my site on porn domains etc'. 

Questions:

1. The new malicious traffic is now about 60% of our total traffic - Can this hurt our SEO ranking and traffic in your opinion?
   
2. Any ideas on how we can stop this attack on our site?
   

I really hope someone here can help me because this is so easy to do and can happen to your site too.

Thanks!

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