Click fraud can be wildly unpredictable, and the action has to occur before it can be identified.
Some of the most common methods of identifying click fraud are:
Internet Protocol address: IP addresses provide a multitude of information. Geographic targeting tools in search advertising (if you use them) can stop outsiders from clicking on your ad and clicks from countries beyond your scope of business may indicate fraud. A high frequency of clicks from the same IP address can also be an early warning sign that somebody is clicking fraudulently.
Unusual activity: A problem may exist if a search term or keyword grouping normally receives 10 searches or clicks a month and you suddenly receive 1,000. Similarly, if keyword costs begin to skyrocket for no apparent reason, you may be a victim of click fraud. Abnormally high abandonment rates may also tip you off.
Next: How to protect yourself