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I've also heard about this adsense extension plugin. I have never tired it or even seen it working.
But I am sure that if you asked Adsense about it then they will tell you if it is safe or not. If it is listed as a plugin on Google's site then I guess it would be safe to use. If it was not save them Google would have found out about it by now as many of the users would have told them about it.
It's always best to check with Google Adsense though just to make sure. There is no harm in asking if unsure of something.
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