Click fraud protection software works by tracking each and every click on your search network, display and shopping campaigns. Taking into account IP and IP range, unique device, VPN, your unique settings, and more. Each click receives a score on dozens of parameters and then the click fraud algorithm goes to work. At the end, each click will be given an innocent or fraudulent label. The fraudulent IPs are automatically inputted into your Google Ads IP exclusion list. Now your competitor/bot will not see your ad.