When they break, some are obvious because they break lenses, or develop rattles from parts loose inside. Some AO scopes go out of focus after shooting. Some, like the Gamo scope that came on my Whisper, the retical turned slightly with each shot, so that now, the crosshairs have rotated counter-clockwise about 15 degrees.
Mostly, the scope fails to hold zero. It will group a few shots, then the next few shots will group somewhere else and you have to re- adjust windage and elevation to get it to group back where you want. Moving in it's mountings, or the mounting moving on the gun, can cause a scope to exibit the same behaviour, so mark the mounts as Bentong mentioned to see if it could be, or is part of the problem, before giving up on a scope.
Best way to tell if it's seal, or scope is change the scope and see it the gun still acts the same, or check the seal very carefully.
Paul.