Your ads can still serve outside your targeted location
To find out which locations people were in when they were shown your ad and clicked to your website, go to the Locations settings in Google Ads. Switch your view from Targeting Locations to Matched Locations. If your Matched locations include a whole lot of locations that you did not target then you are wasting your money. First up, make sure the location setting on your campaigns is set to “People in or regularly in your targeted locations” to restrict users to people who actually live or work there. If the problem persists, you can manually “exclude” locations to prevent them from ever being shown your ads.