USD 41.94 Billion
Fraud Detection And Prevention (FDP) Market Size, Share, Growth Analysis, By Fraud Type(Identity fraud, Investment fraud, Payment Fraud, Others), Functionality(Real Time Detection, Forensic Analysis), Component, Deployment Mode, Organization Size, Vertical, and Region - Industry Forecast 2024-2031
Report ID:
SQMIG45E2077 |
Region:
Global |
Published Date: June, 2024
Pages:
165
|Tables:
179
|Figures:
78
Fraud Detection And Prevention Market Insights
Fraud Detection and Prevention Market size was valued at USD 41.94 Billion in 2022 and is poised to grow from USD 57.73 Billion in 2023 to USD 272.34 Billion by 2031, at a CAGR of 23.80% during the forecast period (2024-2031).
Fraud prevention and control refers to activities that seek to detect, track and eliminate fraudulent practices within an organization. It starts with fraud identification, followed by prevention through automation or manually with the aid of specific software tools. In our analysis, we identified a few key factors that drive the market, such as the growing complexity of cyber-attacks, the increase in online fraud, and the shifting focus towards analytics for threat analysis patterns, among others. This correlates with the increasing incidences of B2C, B2B and C2C e-commerce transactions involving critical identify and personal data exchanges.
This research also finds that the increase in mobile gaming and increased usage of social media also increases the likelihood of other subsequent fraud activities. This is because fraud schemes continue to become sophisticated, and so are the related losses. A survey by Help Net Security based on events exceeding 44 billion and 800 million active users across the globe indicates a heightened level of complexities regarding new attacks. As such, there is a challenge of contextual detection that must effectively prevent intrusions to minimize loses.
Money laundering, cyber risks, tax dodging, identity theft, and insurance scams are some of the most common types of fraud that affect industries such as finance, government, healthcare, and insurance. On the other hand, as opportunities for fraud are rising, modern technologies and risk management methods including big data, real-time monitoring, and machine learning and AI are used by businesses. Various industries such as banking, healthcare, and e-commerce understand the importance of updating legacy systems, even though some still utilize classical investigation techniques despite their flaws. These threats continue to become more intricate, which may lead to increased utilization of fraud detection and prevention applications.
US Fraud Detection And Prevention Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Authentication
Fastest Growth
Fraud Analytics
Growth Rate
23.80% CAGR
Global Fraud Detection and Prevention Market ($ Bn)
Country Share for North America Region (%)
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Fraud Detection And Prevention Market Segmental Analysis
The Fraud Detection and Prevention Market is segmented based on Fraud Type, Component, Organization size, Functionality, Deployment mode, Vertical and region. By Fraud Type, the market is segmented into Check fraud, Identity fraud, Insider fraud, Investment fraud, Payment fraud, Insurance fraud, Friendly fraud, and other frauds. By Component the market is segmented into Solutions (Fraud Analytics [Predictive Analytics, Descriptive Analytics, Prescriptive Analytics, SNA, Text Analytics, Behavioral analytics], Authentication [SFA, Multi-factor authentication, RBA], Governance, Risk, and Compliance), Services (Professional Services [ Risk assessment, Consulting services, Training and education, Implementation], Managed Services). By organization size market is segmented into Small and Medium Enterprise (SMEs), Large Enterprises. By Functionality the market is segmented into Real Time Detection and Forensic Analysis. By Deployment mode the market is segmented into On-Premises, Cloud. By Industry Vertical market is segmented into Banking, Financial Services, and Insurance (Banking and Financial Institutes, Insurance), Retail and Ecommerce, Government, Healthcare, Manufacturing, Travel and transportation, Real estate, Telecommunications, Other verticals. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Analysis By Organization Size
The large enterprise segment was the leading revenue contributor, and the market penetrated over 70% in 2023. Phishing scams, money laundering, and distributed denial-of-service attacks are some of the heinous crimes thriving amid these expansive enterprises, which may cause financial losses to businesses. These corporations must then ensure that they adopt preventative measures and services for this to be achieved. It is therefore vital for organizations to invest resources in these defensive mechanisms to ensure that data security is protected. On the other hand, The SME segment is expected to have the fastest rate of compound annual growth in the forthcoming period.
The SME sector is predicted to be the fastest-growing sector with a growth rate of more than 19 percent between 2023 and 2030. This has been attributed to the increasing fraud occurrences within such entities. Thus, the increased usage of digital technologies paired with poor protection measures will make SMEs a target for cybercrime. For instance, there is lesser awareness of fraud schemes and their implications on business profits, making it hard for SMEs to implement data protection regulations. In addition, this is a result of increases in cross-border trade, which increases the chances of fraudulent activities. As a result, the search for tools that facilitate the assessment, identification, prevention, and notification of fraud in SMEs is rapidly increasing and will promote the segment’s development in the future years.
Analysis By Vertical
Industry wise, the biggest portion belonged to the Banking, Financial Services, and Insurance sector, which was well over 28% in 2023. The COVID-19 effect has made it incumbent for most organizations to transmute their business models towards a digital way of operating, which has put banking and financial services sector at the mercy of cyber criminals. Moreover, due to the rapidly increasing popularity of financial service products including share broking service insurance service mutual fund services that consumers avail through multiple digital touch points it becomes imperative to deploy preventive measures for detecting fraudulent activities. The increase in the incidents of identity theft and card fraud similarly continues to drive the need for enhanced authentication technologies in this segment.
The retail and e-commerce businesses are expected to have the highest CAGR of over 19% during the given period. Firms in the retail and e-commerce industry rely on the use of electronic devices and digital platforms for improving the customer experience. However, the use of such technologies increases the chances of payment and digital fraud. Therefore, to protect the customer data and enhance the security measures, there will be a growing need for authentication and other fraud mitigation solutions in this segment in the foreseeing years.
Global Fraud Detection and Prevention Market By Solution
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Fraud Detection And Prevention Market Regional Insights
North America stands to be the major player in the fraud detection and prevention market and holds 41% of the fraud detection and prevention industry in 2023, primarily due to being one of the regions most affected globally by money laundering and terrorist financing. Therefore, it is home to a high number of fraud detection and prevention providers. Some of the challenges that Banks, governmental bodies, and financial institutions operating in this region include increasing fraud complication, which has forced them to embrace technological measures in combating fraud. Since the world is increasingly moving towards interconnectedness and automation, the protection of enterprise crucial structures and information becomes a major issue. North America, which is regarded as one of the technological hubs of the world, occupies the most share of cybersecurity vendors in the market.
The Asia Pacific region consists of countries with some of the biggest economies such as China, India, Japan, and South Korea, which are among the leading manufacturing nations. This region also has some of the major companies like Fujitsu and NEC Corporation. The continuous evolution of technology in emerging economies, especially the large number of internet users in China and India has boosted the fraud detection and prevention market in the area.
Global Fraud Detection and Prevention Market By Region
- Largest
- Fastest
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Fraud Detection And Prevention Market Dynamics
Fraud Detection and Prevention Market Driver
Digital Revolution and IoT's Growing Influence
- A worldwide digital revolution is underway, with internet users expanding their online activities beyond searches and social networking to encompass tasks like banking and shopping, accelerated by the COVID-19 lockdowns. This surge in online transactions has unfortunately led to a rise in fraudulent websites, particularly in sectors like finance and shipping services, exploiting unsuspecting customers. Concurrently, the Internet of Things (IoT) is rapidly integrating into consumer lifestyles and industrial processes, with the number of connected devices projected to reach 23 billion. However, this proliferation of IoT devices also poses cybersecurity risks, as they serve as gateways for hackers to access sensitive customer data, highlighting the need for robust security measures in this increasingly connected landscape.
Proliferation of Counterfeit Online Platforms Spans Various Sectors.
- With the surge in online applications and mobile banking services, there's been a corresponding increase in the proliferation of fake websites and mobile apps. This trend extends beyond the banking sector, infiltrating industries such as retail, e-commerce, manufacturing, and healthcare. Mimicking legitimate retail outlets and home delivery services, these fraudulent websites and apps deceive customers into engaging in counterfeit online transactions. In the banking realm, customers increasingly rely on mobile apps for diverse functions such as online payments, statement reviews, lodging complaints, and offering feedback, amplifying the need for heightened vigilance against digital fraud.
Restraints
Insufficient Availability of Skilled Security Personnel
- One of the foremost challenges confronting businesses today is the shortage of skilled employees equipped to combat fraudulent activities effectively. Organizations seeking to analyze and detect sophisticated fraud in cyberattacks often struggle to find security specialists with the requisite expertise. Peninsula News, citing data from the Bureau of Labor Statistics, predicts that the United States will face a shortfall of at least 500,000 qualified cybersecurity professionals. Additionally, the National Association of Software and Service Companies (NASSCOM) projects a demand for one million cybersecurity specialists. According to a survey conducted by the Non-Profit Professional Association for Cyber Security (ISC), 51% of the 3,237 professionals surveyed believe that the shortage of cybersecurity specialists poses extremely high risks for their companies.
Streamlining Fraud Detection and Prevention Solutions Integration
- Integrating fraud detection and prevention solutions can be intricate, especially for organizations with legacy systems. Seamless integration across diverse data sources poses challenges, potentially causing implementation delays. Our market report covers recent developments, trade regulations, production analysis, market share insights, and emerging revenue opportunities. Contact Data Bridge Market Research for insights on the variable frequency drive market to drive informed decisions for market growth.
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Fraud Detection And Prevention Market Competitive Landscape
The Fraud Detection and Prevention Market is highly competitive and characterized by the presence of several key players. The market is driven by the Digital Revolution and IoT's Growing Influence. Also, With the surge in online applications and mobile banking services, there's been a corresponding increase in the proliferation of fake websites and mobile apps. This trend extends beyond the banking sector, infiltrating industries such as retail, e-commerce, manufacturing, and healthcare. Market players focus on strategic collaborations, partnerships, and mergers and acquisitions to expand their market presence and gain a competitive edge. Major players in the market include Accenture, IBM, Intel Security, Symantec, and Verizon. These companies are focusing on developing new technologies and products to detect fraud and prevent it from occurring. They are also partnering with various organizations to help them combat fraud.
Fraud Detection and Prevention Market Top Players Company Profiles
- IBM Corporation (USA)
- Oracle Corporation (USA)
- SAS Institute Inc. (USA)
- FICO (USA)
- NICE Actimize (USA)
- Experian Information Solutions, Inc. (USA)
- ACI Worldwide Inc. (USA)
- BAE Systems (England)
- ThreatMetrix Inc. (USA)
- DXC Technology (USA)
- RSA Security LLC (USA)
- Kount Inc. (USA)
- LexisNexis Risk Solutions Group (USA)
- Splunk Inc. (USA)
- Easy Solutions Inc. (USA)
- Feedzai (Portugal)
- Forter (USA)
- Simility (USA)
- Pindrop Security (USA)
- Signifyd (USA)
Fraud Detection and Prevention Market Recent Developments
- In March 2024, ACI Worldwide (ACI), a provider of real-time electronic payment software solutions, announced it entered a partnership with Germany-based comforte AG to help clients with compliance with the PCI DSS article. As anticipated this union of ACI and Comforte will be helpful in meeting all the new PCI DSS standards (v4. 0). In this partnership agreement, Comforte will provide data-centric solutions to ACI which are already tested to integrate with the ACI’s existing solutions.
- FraudHub March 2024- IDVerse, a leading identity verification solutions company introduces a revolutionary solution that seeks to revolutionize the way fraud is being handled by businesses all over the world.
- A November 2023 news featured Abrigo, a leading compliance, credit risk and lending solutions for financial institutions, announcing its partnership with Mitek, an international mobile deposit and fraud prevention solutions firm. This partnership is a first step in providing the community financial institutions with the basic tools needed to counter the rampant problem of check fraud and other crimes.
Fraud Detection And Prevention Key Market Trends
- Evolution of Fraudulent Activities in the BFSI Sector: Fraudulent activities within the Banking, Financial Services, and Insurance (BFSI) industry have undergone significant evolution over the decades. While previously confined to traditional methods like cheque and wire frauds, the emergence of the digital era has ushered in a new era of virtualized fraud. The proliferation of the cybersphere has expanded the scope of cybercriminal activities, leading to more sophisticated and technologically driven fraudulent schemes. This evolution is further fueled by the increasing adoption of technology among customers, with digital channels such as Internet banking and mobile banking becoming prominent choices for banking services. As a result, there is a pressing need for banks to harness fraud prevention solutions to mitigate the risks associated with these modern forms of fraud.
- Emergence of Advanced Analytics and Machine Learning in Fraud Detection: The surge in available data has provided fraudsters with a vast resource to innovate and refine their fraudulent methods continuously. Consequently, there is an escalating demand for highly sophisticated fraud detection solutions capable of utilizingadvanced analytics and machine learning algorithms. These solutions are essential for identifying intricate fraud patterns and anomalies in real-time, necessitating a proactive approach to combat evolving fraudulent activities effectively.
Fraud Detection And Prevention Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
Our analysis of the fraud detection and prevention market reveals that the banking and financial services sectors are among the foremost adopters of risk-prevention technologies. Given the substantial volume of online data transactions, financial institutions are particularly susceptible to vulnerabilities. Hence, there is a growing emphasis on not only mitigating financial risks but also on real-time fraud detection. The evolution of fraud detection methods, incorporating pattern recognition, reflects this shift. Furthermore, the escalating prevalence of fake websites and mobile apps, propelled by the surge in online applications and mobile banking services, serves as a catalyst for market growth.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 41.94 Billion |
| Market size value in 2031 | USD 272.34 Billion |
| Growth Rate | 23.80% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| 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 |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Fraud Detection And Prevention Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Fraud Detection And Prevention Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
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.
Analyst Support
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.
Fraud Detection And Prevention Market Report Snapshots
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