What I do like about this solution, however, is its comprehensiveness: because it is also a full featured ad tracking and analysis tool, a user can do everything from one place, as opposed to having to use a separate service for click fraud and tracking and reporting/analysis. Still, the one lingering concern with AdWatcher is its use of a redirect that tells visitors who have clicked on your ad repeatedly that they are being monitored for fraud. I would recommend thinking carefully about whether this could harm your relationship with legitimate clients—but because it is optional feature, companies can make individual decisions about whether that approach is prudent for them.
Clearly, this is just the tip of the iceberg when it comes to possible solutions; there are dozens of providers on the market who will offer you variants on the themes above. Among them, you may also want to consider: Authenticlick (full service reporting, analysis, and refund follow-up); ClickDefense.com (self- serve click fraud detection, reporting, and tracking); WhosClickingWho.com (self- serve click fraud detection, reporting, and tracking; and ClickRisk.com (full service reporting, analysis, and refund follow-up).
Of course, what is important for you to first consider in making the move towards any of these automated services is whether the cost of the services will offset the savings you experience in your campaigns. That is the key. On another note, it would be nice to see Google offer an automated method for reporting and crediting accounts until they can investigate fraud fully. Additionally, I have to believe (and hope) that eventually, Google will add just these types of services to their AdWords program. Fingers crossed.