1Understanding Click Fraud
What Click Fraud Is
Click fraud occurs when your ads receive clicks from non-genuine users with no intention of becoming customers.
Primary Sources
1. Competitors
Motivation: Competitors click your ads to:
- Waste your advertising budget
- Drive up your costs
- Discourage you from advertising
- Increase their own impression share
- Lower their own CPCs as competition decreases
Industries Most Affected: High-CPC industries (legal, insurance, finance), local services with concentrated competition
2. Bots and Click Farms
- Automated programs simulating human clicks
- Warehouses with hundreds of phones/devices clicking systematically
- Distributed bot networks spread across thousands of IPs
Detection Difficulty: Modern bots can simulate human behavior (mouse movements, scroll patterns, time on page), making them harder to identify.
The Impact of Click Fraud
Financial Waste
| Scenario | Impact |
|---|---|
| Industry CPC: $15 | |
| 100 fraudulent clicks/day | $1,500/day wasted |
| Monthly waste | $45,000 |
| Annual waste | $540,000 |
Data Corruption
When fraudulent clicks enter your data:
- Bots inflate engagement from certain IPs, locations, devices
- Google thinks these sources are valuable
- Algorithm puts more ads in front of similar (fraudulent) sources
- Performance degrades as budget shifts toward fraud
The Scale of the Problem
- Conservative estimates: 5-10% of clicks
- Aggressive estimates: 15-20% of clicks
Some advertisers experience virtually no fraud; others see 30-50% fraud rates depending on industry and targeting.
2Warning Signs: Detecting Click Fraud
Indicator #1: Clicks Spike Without Conversion Spike
Normal: Conversions correlate with clicks. If clicks increase 50%, conversions increase proportionally.
Fraud: Clicks increase 50%, conversions stay flat. Conversion rate crashes.
Why: Fraudulent clicks don't convert because they aren't real prospects.
Indicator #2: Unusually High CTR from Specific Locations
Normal CTR: 2-8% (varies by industry)
Fraud Pattern: One city/country shows 15-25% CTR while others show normal 3-5%
Why: Click farms or competitor locations generate artificial engagement from concentrated areas.
Indicator #3: Repeated Clicks from Same IP
Normal: Most IPs click once, occasionally 2-3 times over several days while researching.
Fraud: Same IP clicks 10+ times in a day, never converts. Multiple IPs from same location showing identical patterns.
Indicator #4: Spike in Bounce Rate or Short Sessions
Normal Bounce Rate: 40-70%
Fraud Pattern:
- Bounce rate suddenly spikes to 85-95%
- Average session duration drops from 2 minutes to 5 seconds
- Pages per session drops to 1.00
Why: Bots load your page briefly to register the click, then immediately leave.
3Google's Automatic Protection (and Why It's Insufficient)
What Google Does
Google's systems attempt to identify and filter:
- Duplicate clicks from same user
- Bot-like behavior patterns
- Clicks from known fraudulent sources
- Unusual activity spikes
Where to See This: Navigate to Billing > look for "Adjustments" or "Invalid Click Credits"
Why It's Not Enough
| Issue | Reality |
|---|---|
| False Negatives | Sophisticated bots mimic human behavior |
| Conservative Filtering | Google errs on counting clicks (they profit from volume) |
| Legitimate Multi-Clicks | High-consideration purchases involve multiple clicks |
Common Experience:
- Advertiser spends: $10,000
- Google credits: $50-$200
- Advertiser suspects fraud cost: $1,500-$3,000
Google's systems catch perhaps 10-30% of actual fraud, leaving 70-90% unaddressed.
Want to see how your account stacks up?
Get a complete Google Ads audit in under 3 minutes.
4Defense #1: IP Address Exclusions
Strategy
Manually block specific IP addresses from seeing your ads after identifying repeat fraudulent clickers.
How to Implement
Step 1: Identify Suspicious IPs
Low Volume (<500 clicks/month): Manually review click logs, look for IPs clicking 5+ times without converting.
High Volume: Use third-party click fraud detection tools that automatically flag high-risk IPs.
Step 2: Add IP Exclusions
Account-Level (Recommended):
- Click Admin (gear icon)
- Select Account Settings
- Scroll to IP Exclusions
- Enter suspicious IP addresses (one per line)
- Click Save
When This Works Best
- High-CPC industries where 10 fraudulent clicks cost hundreds
- Local businesses with identifiable competitor locations
- Small campaign budgets where every click matters
Limitations
- Dynamic IPs change frequently
- VPNs and proxies allow fraudsters to rotate IPs
- Time-consuming for high-volume accounts
Effectiveness: Can eliminate 10-30% of fraud in targeted scenarios.
5Defense #2: Geographic Targeting Adjustments
Strategy
Exclude or reduce bids for locations with disproportionately high fraud rates or low conversion rates.
Why Certain Locations Have More Fraud
- Click farm concentration in specific countries
- Regions with less digital fraud enforcement
- Countries where VPN/proxy services concentrate
How to Implement
Step 1: Analyze Location Performance
- Navigate to Locations report
- Sort by Conversion rate (ascending—worst first)
- Identify locations with high clicks + low conversions, abnormally high CTR, or zero conversions despite substantial clicks
Step 2: Exclude or Adjust Bids
Option A: Complete Exclusion
In campaign settings → Locations → Advanced search → Search for problematic location → Click Exclude
Option B: Bid Reduction
If some legitimate traffic comes from these locations, add -50% to -80% bid adjustment instead of complete exclusion.
Balance
Don't exclude markets purely on assumption—use your data. Some "high-risk" countries may surprise you with genuine, valuable customers.
6Defense #3: Ad Scheduling
Strategy
Run ads only during hours when real prospects are active, avoiding overnight bot activity.
The Bot Activity Pattern
| Time Period | Bot Clicks % |
|---|---|
| 9 AM - 5 PM (Business Hours) | ~5% |
| 10 PM - 6 AM (Overnight) | ~20% |
Why: Bots run 24/7, but real users don't. During low-traffic hours, bots become a larger proportion.
Implementation Options
| Option | Schedule |
|---|---|
| Conservative | Mon-Fri 9 AM - 5 PM only |
| Moderate | Mon-Fri 7 AM - 10 PM, Sat 9 AM - 8 PM |
| Data-Driven | Exclude only worst-performing hours based on your data |
Bonus Benefit
Ad scheduling also improves lead response time for businesses that can't answer inquiries 24/7.
Want to see how your account stacks up?
Get a complete Google Ads audit in under 3 minutes.
7Defense #4: Device Targeting Adjustments
Strategy
Reduce or eliminate budget for devices associated with higher fraud rates.
Device Fraud Patterns
| Higher Fraud Risk | Lower Fraud Risk |
|---|---|
| Cheaper Android devices (click farms) | Desktop computers (genuine B2B) |
| Tablets (automated setups) | Premium mobile (iPhones, high-end Android) |
How to Implement
- Navigate to Insights & Reports → When and Where Ads Showed
- Click Devices
- Review conversion rates by device type
- Apply bid adjustments: -50% to -100% for high-fraud devices
8Defenses #5-8: Additional Protection Strategies
Defense #5: Negative Keywords for Bot-Triggered Searches
Some bot traffic comes from automated searches. Review search terms for patterns like:
- Unusual query lengths
- Repeated identical queries from different users
- Queries with unusual characters
Defense #6: Landing Page Honeypots
Add hidden form fields that bots complete but humans don't see. If completed, flag as bot and exclude IP.
Defense #7: Conversion Value Tracking
Track conversion values to identify patterns. Fraudulent traffic shows clicks without any downstream value—even micro-conversions.
Defense #8: Third-Party Click Fraud Tools
For high-spend accounts, consider dedicated tools:
- ClickCease
- PPC Protect
- ClickGUARD
- TrafficGuard
What They Do:
- Automatic IP blocking
- Real-time fraud detection
- Detailed fraud reporting
- Bot behavior analysis
When Worth It: If you're spending $5,000+/month and suspect 10%+ fraud, the tool cost ($50-$500/month) is easily justified.
9Implementation Checklist
Weekly Fraud Prevention Routine
- ☐ Review click vs. conversion trends
- ☐ Check for CTR anomalies by location
- ☐ Review bounce rate and session duration
- ☐ Add new IP exclusions if patterns identified
- ☐ Update negative keywords for bot patterns
Monthly Deep Dive
- ☐ Full location performance analysis
- ☐ Device performance review
- ☐ Hour-of-day performance analysis
- ☐ Comparison to Google's invalid click credits
- ☐ ROI calculation on fraud prevention efforts
When to Request Google Refund
If you have clear evidence of click fraud:
- Document the evidence (screenshots, data exports)
- Contact Google Ads Support
- Request investigation and potential credit
- Provide specific date ranges and campaigns affected
Success Rate: Varies, but documented cases with clear patterns have better outcomes.