I've heard of many people getting banned from Adsense because of "invalid clicks". I know for sure that I should use Google Analytics and tie it with Adsense to track how many people click the ads each day and report any suspicious behavior, but does Google have any other tools to prevent this sort of thing from happening? Thanks.
Google tracks clicks using IP address. If Google comes to know of multiple clicks from same IP address(even if it wasnt you from another computer) you could be in trouble. So if you see your page CTR suddenly increase or you sudden spike in ad clicks you should check your analytics for a particular user and send a mail to Google stating the same.
I think the only way to avoid invalid clicks is by monitoring the clicks you get. If there is sudden rise in click from particular country, you might have to disable adsense for few days in your site.