Reducing False Positives in Automated Testing involves defining goals to determine which tests to automate, avoiding unstable areas and scenarios that are not supported by the automation tool. Well-written automated tests have a structured script, workflow, and tear down fixture, with no hardcoded data and handled exceptions. Regular peer code reviews can reduce false positives and should be performed by someone with a good understanding of the product and functional changes. False positives can occur due to code changes or changes in product functionality, and the test automation framework should be written in the same language as the application. Dynamic synchronization of objects waits for a specific amount of time for target elements to become available before executing an automation event. Test data setup can lead to false positives if it changes underlying scenarios, while using a known set of pre-existing data or dynamically creating data during run-time can help reduce inconsistencies and improve test stability. Moving setup methods out of test methods helps keep the setup uniform and allows for easier maintenance by fixing issues in one place. To reduce inconsistency when clicking on elements, wait until the element is fully rendered or animation is done before interacting with it, using dynamic waits instead of static waits.