Competitive Click Fraud: How to Spot it, Stop it, and Protect Your PPC Budget

Competitive click fraud happens when rivals or their agents repeatedly click your ads to drain budget, distort your data, and destabilize your campaigns. If you’ve ever seen a spike in clicks with no matching engagement, strange peaks after hours, or clusters from a single area that doesn’t fit your targeting, you’re seeing the classic fingerprints of competitive click fraud. Google classifies this kind of activity under “invalid traffic,” which includes fraudulent clicking by competing advertisers and other non–genuine interactions; Google attempts to filter these automatically, but some slip through, especially in high‑stakes auctions.

Why does this matter right now? Because the cost of letting bad clicks in is compounding. According to Spider AF’s 2025 Ad Fraud White Paper, the average ad fraud rate measured across performance clicks in 2024 was 5.1%, with some networks peaking at 46.9%. The report estimates global losses at $37.7B and shows that legitimate clicks convert at roughly twice the rate of invalid ones, meaning fraud doesn’t just waste spend—it also poisons your optimization data.  When budgets are tight and automated bidding rules are hungry for signals, a few days of competitor clicks can push algorithms toward the wrong audiences and placements.

In this guide, you’ll learn exactly how to recognize competitor‑driven invalid traffic, document it, and shut it down. You’ll also see how Spider AF’s PPC Protection automatically blocks repeat abusers, bad IPs, and low‑quality placements across Google and social platforms to keep your spend focused on real buyers. We’ll use verified data where it counts and give you a fast process you can run every week to stay ahead.

What is competitive click fraud?

Competitive click fraud is a subset of invalid traffic where competitors manually or programmatically click your PPC ads to increase your costs, exhaust your daily budgets, and skew your performance metrics. Google’s policy describes invalid traffic as interactions that don’t come from genuine user interest; examples include manual clicks meant to increase advertiser costs and automated activity.

Why it happens more in “expensive CPC” markets

Industries with high customer value (finance, telecom, real estate, education) attract more abuse. Spider AF’s 2025 White Paper found ad fraud rates of 14.3% in finance and 11.1% in telecom—over double the average—so teams in these categories should assume higher risk and monitor more aggressively.

Early warning signs in your data

• Unusual CTR spikes with no lift in time on site or conversions.
• Surges from a specific city, ASN, or a handful of repeating IPs.
• After‑hours click spikes that don’t match your buyer behavior.
• Short sessions with high bounce, repeated within minutes.

According to Spider AF’s 2024–2025 analysis, invalid clicks convert at about half the rate of valid clicks, so look for sections of traffic where CVR collapses relative to historical baselines.

A 30‑minute investigation workflow

1. Segment by hour and geography. Pull hourly clicks and conversions, then compare against the previous four weeks. Flag off‑hours spikes and new geos.
2. Drill into IPs and ASNs. Export raw logs from your web analytics or ad platform. Identify high‑frequency IPs. Note: IP rotation can still result in clicks from “excluded” IPs due to ISP changes.
3. Cross‑check engagement. Filter sessions under 5 seconds or one‑page visits; compare CVR against account average.
4. Document for Google. Keep a dated spreadsheet of suspicious IPs, timestamps, and campaign IDs to support invalid traffic investigations and adjustments.

Proven ways to block competitor clicks

1) Use platform controls the right way

• IP exclusions (campaign level). Add known offender IPs to exclusions in Google Ads. This is useful for static office IPs and repeat offenders. Google Help
• Audience exclusions. On social platforms, block suspicious audiences instead of IPs to limit repeat exposure. Spider AF automates audience‑based blocking where IPs are less effective.
• Placement exclusions. If you run Display or Performance Max, exclude low‑quality and MFA‑style placements that generate accidental or malicious clicks. Spider AF detects and blocks these at scale.

2) Adjust delivery where fraud clusters

• Dayparting to reduce after‑hours spikes linked to abuse.
• Geo‑tightening around your proven service areas; exclude regions showing high clicks and zero leads.
• Bid caps on fragile terms while you collect evidence.

3) Automate detection and blocking with Spider AF

Manual policing is time‑consuming and easy to bypass with VPNs or rotating addresses. Spider AF’s PPC Protection monitors every click via site script, scores risk in real time, and pushes updated blocklists to ad networks hourly. For Google Ads, it uses IP and audience exclusions; for social channels, it uses audience exclusions to prevent repeat exposure. It also surfaces bad placements—MFA, cluttered ad stacks, brand‑unsafe contexts—for one‑click exclusion.

Real results

• P1 Travel saved $14.8K by blocking fraudulent clicks and improving ROAS.
• Maley Digital blocked 2,771 fraudulent clicks, saving $9,800+ and lifting CVR by 737%.
• OOm blocked 143,000+ fraudulent clicks and saved $154,200 in six months; this work also inspired Spider AF’s Agency Dashboard.

Data that proves it: the cost of letting bad clicks in

Across 4.15B clicks analyzed, Spider AF found an average 5.1% fraud rate and networks as high as 46.9%. Estimated global losses reached $37.7B. Critically, valid clicks convert ~2x better than invalid ones, so allowing competitor clicks to train your bidding models drives systematic underperformance.

FAQ: legality, refunds, and reporting

Is competitor click fraud illegal?

Google policy prohibits fraudulent clicking by competing advertisers; platforms can suspend or disable accounts with high invalid activity.

Does Google automatically credit invalid clicks?

Google filters many invalid interactions and may issue automatic adjustments; you can also monitor and escalate with evidence.

Do IP exclusions solve it?

They help with static offenders, but IP rotation and mobile networks limit coverage. That is why automated audience‑level blocking and placement control are essential.

Conclusion and next steps

Competitive click fraud is predictable, measurable, and stoppable. Start with a weekly 30‑minute review for anomalies, document evidence, and apply targeted exclusions. Then close the loop with automation so abusers don’t return tomorrow.

If your risk is highest on search and social, Spider AF PPC Protection is the most relevant place to begin; it detects and blocks invalid clicks and poor placements before they drain your budget. If fake sign‑ups are inflating your numbers, add Fake Lead Protection to validate conversions in real time via CRM. If you want continuous control over browser‑side risks, run a SiteScan to harden your tag surface.

• Try PPC Protection → https://spideraf.com/ppc-protection
• Explore Fake Lead Protection → https://spideraf.com/fake-lead-protection
• Run a SiteScan security check → https://spideraf.com/sitescan

According to Spider AF’s 2025 Ad Fraud White Paper, cleaning your traffic not only saves budget, it restores accurate conversion data—the foundation of better bidding and growth.