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Same thing happened to me. I sent Google and email and they sent me one back saying they had stuff in place to catch that. You have to be able to prove with servers logs and stuff that fraud is taking place. It's very hard to prove.
I think some competitors will use script bots with fake ip addresses to click on your ads and try and run you out of town. I had to stop that very profitable campaign because I was about to start losing money. That's when I decided I would rather get free listings in the organic search results and started learning SEO.
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