It has been reported that there is an increase of click frauds taking place with Google Adwords and other PPC campaigns. A lot of researchers have approximated that as of 2008, there were about more than $1.6 billion that took place. Whenever a competitor would be clicking on your ads in order to break up your budget, or when a spider or a web robot would generate fraudulent clicks on your ads, click fraud occurs.

Google, along with other search engine companies, affirm that click fraud exists,and that the appropriate steps are being taken in order to prevent the problem from prevailing. Yes, tracking down where fraudulent ad campaigns come from may be hard, but there are ways that you may be able to do this and stop such an event from happening. Preventing PPC fraud with your Google Adwords strategy can be accomplished using the following:

1. Regularly monitor click-through rates. You can easily review your conversions and click-through rates with Google. You can keep an eye on any strange activity by printing out a daily or weekly report. It is also great if you would be able to see traffic reports, and determine the websites and IP addresses that visit your site.

2. Maintain a daily budget. The cost on daily Adwords programs should be restricted, which is why you need to set a budget. You should be able to determine a budget, which for several months, you will be able to maintain. This will help in reducing your risk for click frauds and you will be able to track your Google Adwords expenditures more easily.

3. Set a click limit daily. Bruce C. Brown, the author of the book "The Complete Guide to Google Advertising" suggests that every Adwords manager set up a daily click limit. This allows you to monitor how many clicks are being produced over a period of time, so your ad isn't just 'left out in the open' for anybody to click on. Your ad will then disappear once the click limit is reached.

4. Make use of the feature that determines geographic location. You can protect yourself from fraudulent activities by limiting your ad to particular markets. Why would you be spending money on Adwords to show up in countries where you don’t do business? Do some research to find out where your best target market is, and focus on showing ads only in those countries or regions.

5. If the PPC program is offering you something for free, don’t sign up with it. You can find PPC companies giving you an incentive when you sign up, such as downloadable tools or free products. Be cautious about these, especially if it entails downloading something to your computer that 'monitors' your keyword campaign. But, when you sign up with a particular hosting company, and you get Google Adwords credit, you can be confident that it is safe. You don’t have to worry about bogus activities that can affect your budget as long as you are working with Google Adwords.

You have to report the problem to Google right away if you believe that you have been a victim of click fraud. You can get your Adwords campaign back on track through the help of the fraud protection team of Google.