USD 27.73 Billion
Report ID:
SQMIG45F2217 |
Region:
Global |
Published Date: July, 2025
Pages:
171
|Tables:
116
|Figures:
72
Global Fraud Detection and Prevention Market size was valued at USD 27.73 Billion in 2023 and is poised to grow from USD 32.39 Billion in 2024 to USD 112.19 Billion by 2032, growing at a CAGR of 16.8% during the forecast period (2025-2032).
The rise in online transactions has also contributed significantly to global fraud detection and prevention market growth, as more consumers use digital payments, which increases the number of opportunities for fraudsters to exploit vulnerabilities. A significant driver of the digital transformation of many industries is the growing reliance of businesses on online platforms for transactions.
Furthermore, this change necessitates robust fraud detection systems to protect private data and ensure compliance with legal requirements. Moreover, as businesses prioritize security and risk management, there will likely be a significant spike in demand for sophisticated fraud prevention tools. Additionally, businesses are being compelled to implement effective fraud detection systems to adhere to increasingly stringent regulations. Regulations such as the General Data Protection Regulation (GDPR) and the Payment Card Industry Data Security Standard (PCI DSS) are compelling businesses to invest in comprehensive fraud prevention strategies.
Which Industries are Investing Most Heavily in AI for Fraud Detection?
AI in the fraud detection and prevention market is expanding quickly as more businesses use intelligent systems to fight financial fraud and changing cyberthreats. Real-time analysis of large databases by AI-powered technologies can identify irregularities, flag questionable transactions, and stop fraud before it starts. By using machine learning and behavioral analytics to improve its AI-based Decision Intelligence platform in 2024, Mastercard prevented over USD 30 billion in fraud worldwide. Financial institutions and e-commerce platforms in Asia, Europe, and the US have embraced AI-driven solutions to safeguard their operations as online transactions and digital payments have increased. Rising cybercrime and regulatory pressure for proactive fraud management are predicted to accelerate this fraud detection and prevention industry trend in 2025.
Market snapshot - (2025-2032)
Global Market Size
USD 27.73 Billion
Largest Segment
Solution
Fastest Growth
Services
Growth Rate
16.8% CAGR
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The global fraud detection and prevention market is segmented into components, applications, organization, vertical, and region. By component, the market is bifurcated into solutions and services. Depending on the application, it is divided into identity theft, money laundering, and payment fraud. According to the organization, the market is classified into SMEs and large enterprises. As per vertical, it is categorized into BFSI, government & defense, healthcare, IT & telecom, industrial & manufacturing, and retail & E-commerce. Regionally, it is analyzed across North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
Are Traditional Security Solutions Enough Without AI-Powered Analytics?
As per the 2024 global fraud detection and prevention market analysis, the solution segment led the market with a revenue share of 62.4%, primarily due to the rising demand for advanced authentication methods and fraud analytics. Organizations are increasingly using multi-factor authentication systems to increase security and prevent unauthorized access.
Over the course of the forecast period, the services segment is anticipated to grow at the highest compound annual growth rate (CAGR) due to the rising demand for professional and managed services. Professional services, which include consulting, integration, and training, are essential for companies attempting to implement effective fraud detection systems. On the other hand, managed services provide real-time transaction analysis and continuous monitoring, allowing companies to respond swiftly to potential threats. The fact that businesses are increasingly seeking professional help to negotiate complicated security environments as cyberthreats change is another factor driving demand for these services.
How Does the BFSI Industry Address Growing Financial Fraud Threats?
Based on the 2024 global fraud detection and prevention market forecast, the BFSI segment held the largest revenue share and dominated the market because of its continuous exposure to a range of financial fraud risks. Businesses in this sector are always vulnerable to issues like money laundering, credit card fraud, and identity theft. Therefore, to help minimize losses and ensure compliance with stringent regulations concerning data security and anti-money laundering measures, banks and other financial institutions are putting advanced fraud detection tools into place. By incorporating advanced analytics into transaction monitoring systems, banking, financial services, and insurance (BFSI), organizations can detect suspicious activity promptly while maintaining a faultless customer experience.
The retail & e-commerce segment is expected to have the largest fraud detection and prevention market share. For retailers, the rise of online shopping brings both new opportunities and difficulties, particularly in terms of stopping online fraud such as account takeovers and payment fraud. To combat these risks, they heavily invest in robust fraud prevention strategies, like enhanced transaction monitoring systems and customer identity verification processes. As consumer preferences shift toward e-commerce due to its convenience, retailers seeking to foster customer loyalty must ensure secure transactions in a competitive environment with ever-evolving threats.
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Are Stricter Regulations Fueling Innovation in North American Fraud Detection and Prevention?
As per the fraud detection and prevention market regional analysis, the North American market dominated the global market in 2024 with a 37.3% revenue share because of the region's advanced technology infrastructure and high rates of digital payment method adoption. Due to the encouragement of innovation and competition by companies like IBM Corp., Microsoft, and Oracle, sophisticated fraud detection systems have been developed to combat the increasing complexity of cyberthreats.
U.S. Fraud Detection and Prevention Market
The United States led the regional fraud detection and prevention industry in 2024 because of the rise in digital transactions and the sophistication of cyberthreats. It is expected that advancements in artificial intelligence and machine learning technologies will benefit the fraud detection and prevention industry by enhancing the performance of fraud detection systems. Furthermore, organizations are compelled by stringent regulatory requirements to put comprehensive fraud prevention measures in place to safeguard sensitive data and maintain compliance. As businesses across a range of sectors, including finance, e-commerce, and healthcare, prioritize security, there is an increasing demand for innovative fraud detection solutions.
Canada Fraud Detection and Prevention Market
Banks and government agencies are implementing AI-based fraud detection systems in response to Canada's continuously increasing rate of digital fraud. The Canada Revenue Agency's increased use of AI to detect fraudulent claims and dubious tax files led to a decline in fraud cases in 2024. Predictive analytics and automated fraud detection systems are in greater demand in both the public and private sectors as a result of the increase in phishing attempts and the growing acceptance of online banking and e-commerce.
How are European Countries Responding to the Rise in Cybercrime?
The fraud detection and prevention sector is growing rapidly in Europe because of a dramatic rise in cybercrimes and sophisticated fraud schemes. Customers' increasing preference for online shopping and digital payment methods complicates the situation and necessitates effective strategies to lower the risks associated with cross-border transactions. Businesses are being forced to adopt state-of-the-art fraud prevention techniques due to stricter regulatory frameworks pertaining to identity protection and data privacy.
UK Fraud Detection and Prevention Market
The UK remains at the forefront of fraud prevention innovation because of its stringent laws and extensive use of digital payments. Barclays reduced online fraud by 18% in 2024 by identifying irregularities in consumer transactions through behavioral analytics driven by AI. Financial institutions are investing in adaptive and AI-enhanced fraud detection platforms in response to the increased demand for real-time fraud monitoring systems brought on by the growth of open banking and quick payments.
France Fraud Detection and Prevention Market
The French fraud detection and prevention industry is expanding quickly due to the rising risks of identity theft and online payment fraud. Using artificial intelligence and machine learning, BNP Paribas enhanced its fraud detection system in 2025 to monitor and spot irregularities in real-time transactions. Adoption that is compliance-focused is encouraged by the implementation adherence to PSD2 and GDPR regulations. AI-powered solutions are now crucial for consumer protection and legal compliance due to the rise in cybercrime cases in the banking and retail industries.
Germany Fraud Detection and Prevention Market
Germany is making fraud prevention and detection a top priority because financial institutions are growing more concerned about phishing, social engineering, and synthetic identity fraud. To track and evaluate patterns in account activity in both corporate and retail banking, Deutsche Bank implemented deep learning algorithms in 2024. The operational efficiency and detection accuracy were enhanced by this technique. Demand for sophisticated AI-based fraud analytics and real-time security systems is rising as more Germans use digital ID verification and online banking.
Is E-Commerce Growth Driving Demand for Fraud Prevention in Asia-Pacific?
Over the course of the forecast period, the Asia Pacific fraud detection and prevention market is anticipated to grow at the highest compound annual growth rate (CAGR) due to digitalization and growing internet penetration. The expansion of the e-commerce sector has led to a rise in online transactions, which has created opportunities for fraudulent activities such as payment fraud and identity theft. Companies in countries like China are leading this expansion by investing heavily in state-of-the-art fraud detection technologies to protect consumer data and enhance transaction security.
South Korea Fraud Detection and Prevention Market
Investment in AI-powered fraud detection is being driven by South Korea's sophisticated digital economy to safeguard e-payment and mobile networks. In 2025, the government and leading institutions jointly unveiled a nationwide fraud monitoring system based on artificial intelligence (AI) that can analyze millions of real-time transactions. Blockchain and smart analytics are being used by the public and private sectors to improve transparency and fraud resistance in financial ecosystems in response to a rise in fraud incidents connected to cryptocurrency exchanges and mobile wallets.
Japan Fraud Detection and Prevention Market
The growing popularity of digital wallets, QR-based payments, and mobile banking is causing changes in the Japanese fraud detection and prevention market. Mizuho Bank debuted a fraud detection engine driven by neural networks in 2024. It can spot odd spending patterns and immediately halt transactions. This reduced fraud-related losses and raised consumer trust. Japanese institutions are speeding up the transition to AI-driven risk management solutions across all platforms as worries about scam calls and account takeovers grow.
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Fraud Detection and Prevention Market Drivers
Growth in Online Transactions and Digital Payments
Strict Rules for Regulation Compliance
Fraud Detection and Prevention Market Restraints
High Integration and Implementation Fees
Customer Friction and False Positives
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Players in the fiercely competitive fraud detection and prevention market rely on real-time analytics, cloud computing, and artificial intelligence to stay ahead of the competition. NICE Actimize and FICO prioritize financial crime risk modeling, while SAS and IBM concentrate on integrated fraud solutions. Common strategies include product innovation (e.g., real-time fraud score) and strategic acquisitions (e.g., Mastercard purchasing Ekata). To scale across industries, vendors are also giving priority to modular solutions based on APIs.
Top Player’s Company Profile
Recent Developments in Fraud Detection and Prevention Market
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the rise in digital transactions is changing the fraud detection and prevention market outlook, along with added regulations and the evolution of fraud tactics. Real-time fraud monitoring technologies are progressively become a priority for negating risk for businesses within the BFSI, retail and telecom sectors with growing threats from synthetic identity falsely ascertaining identity using AI driven schemes, or just AI schemes. Despite barriers like false positives, and expensive implementation of fraud detection and prevention technologies, the continual advancement of technologies like machine learning, predictive and behavioral analytics are improving fraud detection capabilities.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 27.73 Billion |
Market size value in 2032 | USD 112.19 Billion |
Growth Rate | 16.8% |
Base year | 2024 |
Forecast period | (2025-2032) |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Fraud Detection and Prevention Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Fraud Detection and Prevention Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Fraud Detection and Prevention Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Fraud Detection and Prevention Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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