Detecting and Preventing Click Fraud in Google Ads for Lead Generation

Click fraud is becoming a bigger problem every day, especially for businesses running lead-generation campaigns. Fake clicks can quickly eat up your ad budget, mess with your data, and lead to bad decisions. While automated tools can help, they’re often not enough to catch the more advanced fraud techniques.

This guide offers simple strategies to spot and stop click fraud in your Google Ads campaigns. By using both advanced tools and customized solutions, you can protect your budget and get better-quality leads.

Table of contents

1. Get to know better about Modern Click Fraud
2. Google’s Click Fraud Dilemma: Navigating the Fine Line Between Revenue and Trust
3. The Issue of Excessive Blocking in Third-Party Tools
4. Why Click Fraud Tools Remain Essential?
5. Addressing Click Fraud with Tailored Solutions
6. The essentials to prevent click fraud
7. Advanced Validation Techniques: Email Verification
8. Mastering the Craft of Intelligent Data Formatting
9. Adjusting Your Google Ads Campaign Settings to Combat Click Fraud
10. Enhanced Google Ads Settings to Combat Click Fraud
11. Filtering Out Fake Leads Using Conditional Triggers
12. Enhancing Sign-Up Processes to Boost Lead Quality
13. The Uncomfortable Reality of Lead Fraud

Get to know better about Modern Click Fraud

Click fraud has advanced far beyond the realm of basic bots. The predators behind these schemes have become increasingly sophisticated, employing tactics that can effortlessly evade standard fraud detection systems. What was once a simple nuisance has now evolved into a booming industry, and you might be a victim without even being aware of it.

Real people in click farms are paid to click on ads all day. They use VPNs to disguise their location, making them appear as legitimate customers. And they are very good at it.

Bots have also improved. They now mimic human behavior – moving the mouse naturally, filling out forms, and even making typing errors on purpose.

When bots and real people work together, detecting fraud becomes much harder.

Scammers are also manipulating and can make your website think they’re new visitors every time or make it appear like they’re in your target city, even if they’re far away.

If you’re only relying on basic click fraud protection, you’re at risk. These aren’t the obvious fake clicks of the past – they’re more advanced and require smarter solutions.

Google’s Click Fraud Dilemma: Navigating the Fine Line Between Revenue and Trust

Google’s Click Fraud Dilemma:

• Google faces a conflict between earning from fraudulent clicks and keeping advertisers happy.
• Fraudulent clicks increase Google’s short-term revenue, but too many fake clicks could cause advertisers to move their spending elsewhere.

Balancing Fraud Protection and Revenue:

• Google needs to protect advertisers from fraud without blocking too many legitimate clicks.
• If Google’s fraud detection is too strict, it could flag real clicks, reducing revenue and pushing advertisers to reconsider their investments.
• If fraud detection is too lenient, advertisers may feel their budget is wasted on fake clicks, hurting Google’s reputation.

Criticism of Google’s Fraud Detection:

• Some critics believe Google’s fraud detection system isn’t strict enough, as it aims to balance advertiser satisfaction and ad revenue.
• Google may catch just enough fraudulent clicks to keep advertisers satisfied while allowing some fraud to slip through to maintain ad revenue.

Increasing Sophistication of Click Fraud:

• Fraudsters are using advanced tactics to mimic human behavior, making fake clicks harder to detect.
• Bots are now able to simulate mouse movements, click patterns, and even fill out forms to look legitimate.
• VPNs and proxy servers are being used to hide the fraudster’s real location, complicating fraud detection.

Advertiser Disbelief:

• The growing complexity of click fraud makes many advertisers doubt how well Google’s fraud detection works.
• As a result, many advertisers turn to third-party tools and services for more accurate click fraud monitoring.

The Issue of Excessive Blocking in Third-Party Tools

Third-party click fraud detection tools face their own set of challenges. To stay in business, these tools must justify their monthly subscription fees, which creates pressure to show measurable results, often in the form of “blocked fraud.” As a result, many of these tools tend to be overly aggressive, sometimes blocking legitimate customers by mistake.

To avoid showing little or no fraud detection, something that could lead clients to cancel their subscriptions, these tools often raise their detection thresholds and flag anything even remotely suspicious as fraud. This means that they might wrongly block real users who:

• Use a VPN for added privacy,
• Share an IP address with others (such as in an office environment),
• Use privacy tools while browsing,
• Exhibit uncommon but still legitimate clicking patterns.

This over-blocking issue can end up harming businesses more than the fraud these tools are meant to prevent. It’s similar to a security guard at a store who’s so focused on catching shoplifters that they end up turning away paying customers as well.

Why Click Fraud Tools Remain Essential?

Despite the imperfections, click fraud detection tools are still incredibly valuable as your first line of defense.

Think of them like security cameras for your ad traffic – they might not catch every detail, but they give you a clear view of what’s going on.

Here’s why they’re worth using:

• They spot traffic patterns in minutes that would take humans weeks to identify.
• Even if they occasionally misidentify clicks, they excel at detecting unusual trends, like repeated clicks from the same source or during odd hours.
• They provide actionable data, allowing you to make informed decisions rather than automatically blocking everything flagged as suspicious.

The key is to treat these tools as a starting point, not the final verdict. Review their reports, but take time to evaluate them thoughtfully.

• Are the flagged clicks actually damaging your business?
• Do the blocked users align with your customer base?

By combining the tool’s insights with your own understanding of your audience, you can make smarter, more accurate decisions about what’s truly fraudulent.

Most third-party click fraud detection tools operate similarly, and a quick Google search for “click fraud tool” highlights the major players. The main differences usually lie in pricing and contract terms.

Addressing Click Fraud with Tailored Solutions

Once you’ve gotten an initial overview with third-party click fraud tools, the next step is to create custom solutions tailored to your specific needs.

Each business operates in a unique environment with its own software, website systems, and monitoring processes.

To develop these customized solutions, it’s best to collaborate with your IT team or developers, as many of these solutions will require adjustments to your website.

The essentials to prevent click fraud

1. Choose the right identifier

There are several solutions that can address around 80% of click fraud issues. The first step in combating click fraud is to identify a unique marker to track.

Typically, the IP address is the go-to choice, as you can exclude specific IPs from Google Ads, making it an effective identifier.

However, other options like device fingerprints can also be considered. Once you’ve chosen an identifier, it’s essential to ensure your server logs or internal tracking systems are set up to monitor and analyze these identifiers for further investigation.

2. CAPTCHAs: A Simple Yet Overlooked Solution

One often overlooked but effective tool in the fight against click fraud is CAPTCHAs. These systems can help identify bots and fraudulent traffic. Google’s reCAPTCHA offers a free and easy-to-implement option.

While CAPTCHAs seem like a straightforward fix for bot traffic, they come with significant drawbacks.

By adding a CAPTCHA, you’re essentially asking your legitimate users to “prove you’re human before I trust you.” This creates friction, which can negatively impact conversions.

Many websites experience a decline in form submissions when CAPTCHAs are set too strictly.

While more advanced CAPTCHAs can reduce their frequency, not all providers offer this flexibility. So, it’s important to choose your CAPTCHA provider or solution carefully.

3. Honeypot Fields: A Sneaky Trap for Bots

Honeypot fields are hidden form fields designed to catch bots. The idea is simple but works well: you add extra fields to your form that are invisible to real users but visible to bots.

Bots that read the raw HTML will try to fill out these hidden fields, while legitimate users won’t even notice them. The trick is to make these fields look authentic enough to trick bots into interacting with them.

To make honeypot fields effective, use names that bots typically try to fill in, such as “url,” “website,” or “email2.” If any of these hidden fields get completed, it’s a strong sign that a bot is at work, as real users won’t even be aware of their existence.

A helpful tip: Avoid using obvious names like “honeypot” or “trap” for these fields, as bots are becoming more sophisticated and can easily recognize these labels. Instead, opt for names that resemble standard form fields to make the traps harder to detect.

Advanced Validation Techniques: Email Verification

Smart Form Validation:

Email

Basic Email Checks Are Not Enough

• Many businesses only check if an email contains the “@” symbol, which allows fake submissions and spam to slip through.

Advanced Email Validation is Needed

• Go beyond surface-level checks by verifying the email structure and examining the domain (legitimacy, age, and mail server records).
• These checks should ideally be done in real-time as users fill out the form and may require third-party tools for verification.

Don’t Block All Free Email Providers

• Blocking all free email providers like Gmail or Yahoo might seem like a good idea, but it could hurt legitimate users.
• Small business owners often use Gmail for communication, so blocking it could exclude valid leads.

Look for Unusual Patterns Instead

• Instead of blocking free email providers entirely, focus on spotting suspicious patterns (e.g., a Gmail address with a random string of characters).

Blocking Free Providers May Make Sense for B2B

• For enterprise-level B2B sales where you expect company-specific emails, blocking free providers like Gmail might be reasonable.

Relay on Third-Party Services

• Modern email validation often requires external tools to check email details in real-time, meaning businesses must rely on third-party services for accurate validation.

Phone

Phone number validation involves more than just counting digits, it’s about understanding the location behind the number.

For example, if someone enters a New York area code but provides an address in California, that discrepancy should raise a red flag for further investigation.

However, it’s essential to approach this cautiously. People often keep their old phone numbers when they move or travel. Instead of automatically rejecting mismatched phone numbers, use them as indicators to dig deeper and verify the information.

Mastering the Craft of Intelligent Data Formatting

Data formatting isn’t just about organizing your database—it’s about identifying errors and fraud while ensuring the form remains user-friendly for legitimate entries.

While it’s important to flag clearly fake names like “asdfgh” or strings of repeated characters, keep in mind that real names can vary widely across different cultures and traditions. Some people may have only one name, others might have long multi-part names, and some may include characters your system doesn’t recognize at first glance.

Adjusting Your Google Ads Campaign Settings to Combat Click Fraud

Google offers several campaign features designed to boost your reach, but they can also open the door to increased click fraud. While these options help attract more traffic, they may also bring in fraudulent clicks.

As your campaign expands, it becomes harder to filter out malicious activity. Click fraud detection tools are essential to minimize this risk. Adjusting your settings carefully can help reduce fraudulent interactions while maximizing legitimate engagement.

App Placements in Performance Max Campaigns

Performance Max campaigns allow your ads to appear across Google’s entire network, including apps. While this wide reach can be beneficial, it also increases the likelihood of click fraud.

The problem is that you have limited control over where your ads show up, and some automatic placements can lead to wasted ad spend. For example, kids’ games are often a major source of accidental or fraudulent clicks. Ads in these apps are frequently placed near buttons, and children may click on ads while trying to interact with the game.

Another concern arises from apps that use misleading design elements to encourage clicks. These apps might position interactive elements near ads or design their interface in a way that causes users to click on ads unintentionally. While not always intentional fraud, poor app design still leads to wasted ad spend.

Unlike traditional campaigns, Performance Max’s automated system makes it harder to exclude specific placements. It optimizes for conversions, but it may fail to recognize that clicks from certain apps are low quality and don’t result in meaningful leads. By the time you identify the issue, you’ve already spent money on unproductive clicks.

For most advertisers, excluding app placements is essential. Very few see a true benefit from having ads placed in apps.

Partner and Display Network Challenges for Lead Generation

Lead generation businesses face unique challenges with Performance Max campaigns that eCommerce stores can often avoid.

E-commerce businesses can run Shopping-only campaigns targeting high-intent product searches, but lead generation companies must deal with the full Performance Max package, which includes the problematic Display Network. This network exposes ads to a wide range of websites, many of which may not provide quality placements. While Google filters out bad actors, many sites still exist primarily to generate ad clicks.

These sites might seem legitimate, but they’re designed to encourage accidental clicks or attract bot traffic. Some even run on expired domains with nothing but ads.

For lead generation businesses, Performance Max typically runs across all networks except shopping. This presents several challenges:

1. Click quality varies greatly. For instance, someone might click your ad for a medical practice while trying to close a pop-up on a gaming site. They’ll never become a patient, but you’ll still pay for that click.
2. Display placements can show up on websites that don’t align with your brand’s image. A law firm ad appearing on a questionable site doesn’t help build trust with potential clients.
3. Display ads are often targeted by bots and click farms, who find it easier to interact with these ads. High click-through rates can be misleading if none of those clicks convert into actual leads.

These are just a few reasons why lead generation businesses need to carefully consider Performance Max campaigns. Each marketer must decide whether the potential rewards outweigh the risks.

Enhanced Google Ads Settings to Combat Click Fraud

1. Use Advanced Solutions: When basic measures aren’t enough to stop click fraud, more advanced solutions are necessary to protect your campaigns.
2. Block Suspicious IP Addresses: One approach is to block IP addresses that seem suspicious, but you can also take further steps.
3. Create Negative Audiences: Set up negative audiences to filter out potential fraud, ensuring only legitimate traffic reaches your ads.
4. Set Up a Secondary Success Page: Create a secondary success page on your lead generation form specifically to catch fake or bot sign-ups.
5. Evaluate Visitors in Real Time: Your website should check visitors in real time during the sign-up process to identify if they are bots.
6. Direct Bots to the Special Success Page: Once a bot is detected, send them to the secondary success page designed for fake sign-ups.
7. Use a “Bot Pixel”: On the secondary success page, add a “bot pixel” to track the fake audience and send this data to Google.
8. Exclude Bots from Campaigns: After gathering enough data from bots, you can exclude them from your campaigns to improve targeting.
9. Accurate Data: Ensure that the “bot pixel” only activates on the special success page to avoid mixing audiences and maintaining accurate data.

Filtering Out Fake Leads Using Conditional Triggers

An effective strategy for filtering fake leads is setting up condition-based conversion tracking. By combining this with hidden form fields, you can adjust the conversion trigger to prevent data from being sent if the hidden field is filled in.

This setup allows you to filter out bots from your conversion tracking, ensuring that only legitimate conversions are sent back to your campaign.

As a result, Google’s algorithm and bidding strategy are trained on real, high-quality data.

With this approach, you can significantly reduce the impact of fake leads and traffic, enhancing the effectiveness of your campaigns.

Enhancing Sign-Up Processes to Boost Lead Quality

• Make the sign-up process more challenging: Lengthen the form with more detailed questions to reduce fake sign-ups.
• Bots avoid lengthy forms: Bots are typically trained to fill out short forms, so using longer forms helps filter them out.
• Use dropdown menus and detailed questions: Adding these elements can help improve lead quality and reduce fraud.
• Risk of discouraging valid sign-ups: Be careful, as longer forms might discourage real users from completing them.
• Weigh the risk: Consider the trade-off between reducing bot traffic and possibly losing genuine leads.

For example, a man worked with a car dealership that had a form for people to offer their cars for sale and get an estimate. At first, the form was short, which led to a high number of sign-ups. However, many of these submissions turned out to be spam or low-quality leads.

To improve this, they switched to a much longer form with about 20 fields, including a requirement to upload pictures of their cars. While the number of sign-ups decreased, the quality of leads drastically improved.

Though the new form took a bit longer to complete, the users who finished it were genuinely interested. This made it easier for the sales team to follow up with meaningful conversations and convert leads more effectively.

The Uncomfortable Reality of Lead Fraud

Here’s the hard truth: You can’t completely eliminate lead fraud. It’s like shoplifting in retail—you can reduce it and catch it quicker, but you’ll never fully stop it. Fraudsters are always evolving, and for every security measure you put in place, they’ll find a way around it.

But don’t worry, perfection isn’t the goal. What matters is having a smart, balanced approach that blocks the majority of bad leads while allowing real ones to flow through with ease. Think of it like managing a store: You need security, but not so much that it scares off legitimate customers.

The secret is layering your defences. Use click fraud tools to block the obvious threats, implement smart form validation to filter out suspicious sign-ups, and add a human touch to spot any patterns that slip through.

Yes, some fake leads will still make it through the cracks. But if you can stop 90% of the fraud, you’re doing great.

At the end of the day, remember this: perfection is the enemy of progress. Make fraud costly and difficult for the bad guys, and keep your process simple and smooth for real prospects. That’s how you stay ahead in the long run.