Fraud Detection and Prevention Market Growth Report, Size and Forecast 2028

Fraud Detection and Prevention Market Size and Forecasts (2021 - 2028), Global and Regional Share, Trends, and Growth Opportunity Analysis Report Coverage: By Component (Solution and Services), Deployment (On-premises and Cloud), and End-user (BFSI, Healthcare, Manufacturing, Retail, Telecommunication, and Others)

  • Report Code : TIPTE100000652
  • Category : Technology, Media and Telecommunications
  • Status : Published
  • No. of Pages : 199
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Fraud Detection and Prevention Market Growth Report, Size and Forecast 2028

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[Research Report] The fraud detection and prevention market size is expected to grow from US$ 26,511.84 million in 2021 to US$ 75,139.66 million by 2028; it is estimated to grow at a CAGR of 16.0% from 2021 to 2028.

Analyst Perspective:

The growing online fraud and more sophisticated cyberattacks worldwide are the major factors that are raising the demand for fraud detection and prevention solutions. In addition, the growing inclination toward advanced analytics for threat pattern recognition is also fueling the growth of the fraud detection and prevention market. Also, with the growing digitization and increasing popularity of e-commerce transactions, which require the transmission of sensitive data, identity information, and personal information of people and businesses, online fraud threats have been rising in tandem, increasing the demand for fraud detection and prevention solutions. Furthermore, the increasing adoption of advanced technologies like AI and ML to detect fraud and prevent it from occurring is expected to propel the growth of the fraud detection and prevention market in the forecasted period.

Market Overview:

Fraudulent activities are common in the financial institutions, government, healthcare, public sector, and insurance sectors. They can involve a wide range of cases, such as money laundering, tax evasion, fraudulent insurance claims, cybersecurity threats, forged bank checks, identity theft, and terrorist financing. To cater to these problems, organizations are putting modern fraud detection and prevention technologies and risk management strategies into practice to combat this growing list of opportunities for fraudulent transactions. These strategies combine real-time monitoring with big data sources and apply adaptive and predictive analytics techniques, like machine learning (ML), to create a risk of fraud score. In addition, organizations can also predict fraud tactics, cross-reference data through automation, manually and continuously monitor transactions and crimes in real-time, and decipher new and sophisticated schemes by using fraud detection software and tools, data analytics, and a fraud detection and prevention program.

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Fraud Detection and Prevention Market: Strategic Insights

Fraud Detection and Prevention Market

  • CAGR (2021 - 2028)
    16.0%
  • Market Size 2021
    US$ 26.51 Billion
  • Market Size 2028
    US$ 75.14 Billion

Market Dynamics

GROWTH DRIVERS
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FUTURE TRENDS
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OPPORTUNITIES
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Key Players

  • Accertify, Inc.
  • BAE Systems
  • F5
  • FICO
  • Fiserv, Inc.
  • IBM corporation
  • Paypal
  • SAP SE
  • SAS Institute Inc.

Regional Overview

  • North America
  • Europe
  • Asia-Pacific
  • South and Central America
  • Middle East and Africa

Market Segmentation

Component
  • Solution and Services
Deployment
  • On-premises and Cloud
End-user
  • BFSI
  • Healthcare
  • Manufacturing
  • Retail
  • Telecommunication
  • Others
  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.

Market Driver:

Increasing Number of Cyberattacks Across Enterprises is Driving the Growth of the Market

Cyber-attacks have been rated the fifth top-rated risk in 2020 and are increasing day by day with technology. Computer malware, data breaches, and denial of service (DoS) are some of the examples of cyber risks. Businesses are under continuous threat of cybercrimes. Cyber-attacks have grown more widespread in recent years. In the pandemic period, cybercriminals took advantage of misaligned networks as businesses were moving towards remote working environments. For instance, according to OneLogin, cybercrime cost the world over US$ 1 trillion, wherein 37% of organizations were affected by ransomware, and 61% were affected by malware attacks in 2020. Between 2019 and 2020, cyber-attacks in the US have increased by 139%. In fact, there were a staggering 145.2 million cases in Q3 2020 alone. Malware attacks increased by 358% in 2020 when compared to 2019. Similarly, as per the Clusit Report, cyber-attacks across the globe have increased by 10% in 2021 when compared to the previous year. Cyber-attacks globally increased by 125% globally in 2021 and increasing volumes of cyber-attacks continued to threaten businesses and individuals in 2022. For instance, according to AAG, the UK had the highest number of cybercrime victims per million internet users at 4783 in 2022, an increase of 40% over 2020 figures. The average cost of a cyber breach was US$ 4.35 million in 2022, and it is predicted that this number is expected to rise to US$ 10.5 trillion by 2025.

Cyber threats are a huge matter of concern in today's digital environment. They have serious consequences for individuals, corporations, and governments. Prevention from cyber-attacks is essential. The rise in the number of cyber-attacks has increased the importance of cybersecurity to safeguard critical infrastructures and to ensure the safety of individuals and organizations. Fraud detection and prevention solutions have emerged as the most important solutions that companies can adopt in order to defend against online attacks. Implementing the software can help organizations generate more sales with good customers, increase authorization rates, reduce reserve account requirements, prevent chargebacks, and many more. Thus, the increasing number of cyberattacks across enterprises raises the demand for fraud prevention solutions, fueling the growth of the fraud detection and prevention market.

Report Segmentation and Scope:

The " Fraud Detection and Prevention Market" is segmented based on component, deployment, end-user, and geography. Based on components, the fraud detection and prevention market is segmented into solutions and services. Based on deployment, the market is segmented into pass on-premises and cloud. Based on end users, the market is segmented into BFSI, healthcare, manufacturing, retail, telecommunication, and others. The fraud detection and prevention market, based on geography, is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

Segmental Analysis:

Based on deployment, the fraud detection and prevention market is segmented into on-premise and cloud. The cloud segment held the largest fraud detection and prevention market share in 2021 and is anticipated to register the highest CAGR during 2021-2028. Cloud-based deployment can help small and medium enterprises to avail different benefits of fraud detection and prevention software as it does not require a high initial investment for installing software. Using cloud-based software provides freedom to use it from any device with internet access. Additionally, it requires low maintenance and investment, further fueling the market growth.

Regional Analysis:

North America is expected to witness significant growth in the fraud detection and prevention market in the forecasted period. In the region, the US will hold the largest fraud detection and prevention market share in 2021 and will register the highest CAGR during the forecasted period. North American countries like the US and Canada have a robust presence in the retail and e-commerce sectors. More than 60% of the US population is engaged in online shopping for both necessities and luxury commodities required in their daily life. In addition, the US has the second-largest e-commerce market in the world. According to the Census Bureau of the Department of Commerce, the US retail e-commerce sales for the first quarter of 2023 was US$ 272.6 billion, an increase of 3% compared to the fourth quarter of 2022. Similarly, according to the International Trade Administration (ITA), in 2022, there were ~27 million e-commerce users in Canada, accounting for 75% of the Canadian population, and the percentage is expected to reach 77.6% by 2025. In March 2022, e-commerce sales in the country were ~US$ 2.34 billion, and they are estimated to reach US$ 40.3 billion by 2025. The continuous growth of e-commerce in the region is creating considerable demand for fraud prevention as it involves the sharing of critical and personal information of people and businesses. Thus, the growth in the e-commerce industry in the region is fueling the fraud detection and prevention market growth in North America.

Key Player Analysis:

SAP SE, ACI Worldwide Inc., Fiserv Inc., IBM Corporation, Oracle Corporation, SAS Institute Inc., BAE Systems Plc, FICO, FIS Global, and Experian Information Solutions Inc. are among the key market players. These fraud detection and prevention market players are focused on continuous product development and innovation.

Fraud Detection and Prevention Market Report Scope

Report Attribute Details
Market size in 2021 US$ 26.51 Billion
Market Size by 2028 US$ 75.14 Billion
Global CAGR (2021 - 2028) 16.0%
Historical Data 2019-2020
Forecast period 2022-2028
Segments Covered By Component
  • Solution and Services
By Deployment
  • On-premises and Cloud
By End-user
  • BFSI
  • Healthcare
  • Manufacturing
  • Retail
  • Telecommunication
  • Others
Regions and Countries Covered North America
  • US
  • Canada
  • Mexico
Europe
  • UK
  • Germany
  • France
  • Russia
  • Italy
  • Rest of Europe
Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
South and Central America
  • Brazil
  • Argentina
  • Rest of South and Central America
Middle East and Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of Middle East and Africa
Market leaders and key company profiles
  • Accertify, Inc.
  • BAE Systems
  • F5
  • FICO
  • Fiserv, Inc.
  • IBM corporation
  • Paypal
  • SAP SE
  • SAS Institute Inc.
    • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.

    Recent Developments: 

    Inorganic and organic strategies such as product launches, partnerships, collaboration, and mergers and acquisitions are highly adopted by companies in the fraud detection and prevention market. A few recent key market developments by these companies are listed below: 

    • In May 2023, ComplyAdvantage, a forerunner in financial crime intelligence, announced the launch of its novel AI-powered solution, Fraud Detection. This pioneering technology utilizes machine learning algorithms to identify and curb transaction-related fraud, an ever-growing concern in the age of P2P and real-time payments. The new solution is a response to the increasing ingenuity of fraudsters and the diverse channels they exploit, leading to billion-dollar losses for consumers and businesses alike.
    • In April 2023, Darwinium announced the launch of its Continuous Customer Protection platform, an evolutionary next step for security and fraud prevention for all digital businesses concerned about customer experience and security. The platform can help in solving the challenge of disconnected point-in-time API integrations and risk scores, which lead to data breaches and dissatisfied customers.
    • In March 2023, Verosint announced the launch of version 2 of 443ID’s IAM platform. This new account fraud detection and prevention solution consists of capabilities such as behavioral analytics, rules engine, identity graphing, and AI/ML that automatically tag different forms of account fraud, such as promo abuse and account sharing.
    • In May 2022, FullContact, the industry leader in identity resolution as a service, announced the launch of Verify, a new identity product that powers identity verification (IDV) and fraud prevention. Verify provides data and intelligence to optimize IDV and fraud prevention models, allowing platforms to enhance solution security while also reducing friction in the customer experience. Verify provides real-time signals, matches, and activity scores from FullContact’s identity graph to identify real people and determine risk.
    Report Coverage
    Report Coverage

    Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

    Segment Covered
    Segment Covered

    Component, Deployment, and End-user

    Regional Scope
    Regional Scope

    North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

    Country Scope
    Country Scope

    Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States

    Frequently Asked Questions


    Which end-user is expected to dominate the market in the forecast period?

    The global fraud detection and prevention market was dominated by the BFSI segment with market share of 24.5% in 2020. The BFSI sector has to face several fraud threats, including card skimming, identity thefts, SMS phishing, website cloning, viruses & trojans, spyware & adware, and cyberstalking. To stop these attacks, regulatory bodies across the globe have devised several regulations for organizations to achieve optimum security for customers and organizational data. Fraudsters and hackers are trying newer and advanced technology-based solutions to hack into or access unauthorized networks and systems. As a result, banking and financial service providers spend millions of dollars to keep their systems up to date with the latest security measures. Therefore, the need for fraud detection and prevention solution and services are most important in the BFSI sector.

    Which region has dominated the fraud detection and prevention market in 2020?

    In 2020, North America led the market with a substantial revenue share, followed by Europe and APAC. Asia Pacific is a prospective market for fraud detection and prevention market players.

    Which are the major companies operating in the fraud detection and prevention market?

    The major companies in fraud detection and prevention market includes Fiserv, Inc., IBM Corporation, ACI Worldwide, Inc., BAE Systems Plc, SAP SE, Fair Isaac Corporation, NCR Limited, Oracle Corporation, RELX plc, SAS Institute Inc.

    What are key market opportunities for fraud detection and prevention market?

    The banking and financial services industries are early users of risk-prevention technology. Financial organizations are extremely vulnerable because of huge internet data exchanges. According to Facebook and BCG, India's online banking adoption rate is predicted to treble to 150 million by 2022, thus increasing the risk of fraudulent activity. As the use of digital banking grows, it is becoming increasingly vital for financial institutions to safeguard transactions against fraud. Financial institutions are now concentrating not just on financial risk mitigation but also on real-time fraud detection. With the emergence of pattern recognition, fraud detection systems are evolving. Machine learning technologies have given artificial intelligence a big boost in its ability to defend any system, since ML can safeguard firms from insider fraud and spot any irregularities in persons who may leak data. As the demand for AI and machine learning grows, so does the use of FDP solutions.

    What are key driving factors behind fraud detection and prevention market growth?

    The world is undergoing a digital transformation. Users of the internet are no longer limited to online search and social networking but have expanded their activities to include online banking and shopping. People have ceased leaving their homes due to COVID-19 lockout limitations, and a major portion of the population has begun to use internet transactions. According to the Boston Consulting Group (BCG), 70 percent of urban customers in countries like India are digitally influenced to buy any financial goods, which implies they utilize banking apps or websites to purchase financial items. As a result, there has been an increase in the number of bogus websites. Apart from banking, bogus websites that resemble businesses and home delivery services are on the rise, luring customers into making online purchases. Furthermore, IoT is becoming an important aspect of consumer lifestyle and industrial operations as the use of IoT grows and new IoT included items enter the market.
    • According to the Global System of Mobile Communication (GSMA), by the end of 2020, there will be 23 billion IoT connections. One of the reasons, according to the report, is that connected gadgets provide convenience, which allows hackers to gain access to networks. Consumer data is collected, sent, and stored by linked devices, posing a privacy concern. Ad and ATM frauds are two significant IoT frauds that are both widespread and terrible in the IoT era. The rise in fraud because of hackers impersonating debit and credit card activations, online bookings, free coronavirus tests, and job offers has prompted the development of fraud detection and prevention technologies.

    The List of 10 Companies - Fraud Detection and Prevention Market

    1. Accertify, Inc.
    2. BAE Systems
    3. F5
    4. FICO
    5. Fiserv, Inc.      
    6. IBM corporation
    7. Paypal
    8. SAP SE
    9. SAS Institute Inc.
    10. Securonix

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