What is the global market size of Fraud Detection And Prevention Market?

Fraud Detection And Prevention Market size was valued at USD 29.8 billion in 2021 and is poised to grow from USD 36.94 billion in 2022 to USD 217.3 billion by 2030, growing at a CAGR of 23.8% in the forecast period (2023-2030).

What is the key driver of Global Fraud Detection And Prevention Market?

The use of online applications and mobile banking services has increased, so does the number of fake websites and mobile applications. Fake websites and online applications are on the rise in other industries, including retail and e-commerce, manufacturing, and healthcare. These websites and applications look exactly like retail stores and home delivery services, luring customers into completing bogus online transactions. Customers in the banking industry are increasingly reliant on mobile applications for a variety of purposes, including online payments, statement reviews, registering complaints, and providing feedback, among others.

What is the key market trend for Global Fraud Detection And Prevention Market?

Global economy was severely impacted by the coronavirus pandemic. In the first half of 2020, the overall demand for fraud detection and prevention (FDP) solutions dropped slightly across all the applications. Several commercial campaigns, planned investments, government strategies, and other initiatives have also been brought to a halt due to a lack of functioning. The outlook for fraud detection and prevention market in the second half of 2020 and beyond increased the adoption of fraud detection and prevention solutions as a result of increased cybercrime, payments fraud, insurance fraud, and other types of fraud. Individuals are claiming medical expenses for COVID-19 through their life and health insurance policies. The increased number of online insurance claims has created opportunities for fraudsters to engage in fraudulent activities involving insurance claims from hospitals and the government.

Which region accounted for the largest share in Global Fraud Detection And Prevention Market?

By market size, North America is expected to be the largest contributor to the global fraud detection and prevention market. It is one of the most affected regions in the world by money laundering and terrorist financing crimes, and as a result, it has the most FDP providers. Banks, governments, and financial institutions in this region face ever-increasing fraud challenges, compelling them to implement advanced technological approaches to fraud management. As the world moves toward interconnections and digitalization, protecting enterprise-critical infrastructures and sensitive data has become one of the major challenges. North America, a technologically advanced region, leads the world in terms of cybersecurity vendor presence.

Global Fraud Detection And Prevention Market Size, Share, Growth Analysis, By Solution(Fraud Analytics, Authentication), By Application(Identity theft, Money Laundering), By Deployment Mode(Cloud, On-Premise), By Organization Size(Large Enterprises, Small & Medium Enterprises (SMEs)), By Industry Vertical(BFSI, Government & Defense), By Services(Professional Services, Managed Services) - Industry Forecast 2024-2031

Q: Who are the key vendors in the Global Fraud Detection And Prevention Market?

The fraud detection and prevention market is growing rapidly due to the increasing incidence of fraud and the threat it poses to businesses. The market is expected to grow at a CAGR of 24.89% between 2022 and 2028. 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. 'IBM Corporation', 'Oracle Corporation', 'SAS Institute Inc.', 'FICO', 'NICE Actimize', 'Experian Information Solutions, Inc.', 'ACI Worldwide Inc.', 'BAE Systems', 'ThreatMetrix Inc.', 'DXC Technology', 'RSA Security LLC', 'Kount Inc.', 'LexisNexis Risk Solutions Groupiovation Inc.', 'Splunk Inc.', 'Easy Solutions Inc.', 'Feedzai', 'Forter', 'Simility', 'Pindrop Security'

Report ID: SQMIG45E2077 | Region: Global | Published Date: February, 2024
Pages: 165 | Tables: 179 | Figures: 78

Global Fraud Detection And Prevention Market Insights

Global 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 detection and prevention encompass a range of methods and strategies aimed at identifying, monitoring, and stopping fraudulent activities. The initial step involves detecting fraud, followed by automated or manual measures to prevent it, often facilitated by specialized software. Based on SkyQuest in-depth study, we found several significant factors propel market growth, including the escalation of cyberattacks' sophistication, the surge in online fraud, and a growing inclination toward advanced analytics for threat pattern identification, among others. The proliferation of online fraud risks aligns with the burgeoning popularity of B2C, B2B, and C2C e-commerce transactions, characterized by the exchange of critical identity and personal data.

Our study also reveals that the expansion of mobile gaming and heightened social media usage amplify the susceptibility to subsequent fraudulent activities. As fraud tactics become more intricate, associated losses also escalate. Analysis by Help Net Security, encompassing over 44 billion events across 800 million active users worldwide, reveals a marked rise in the complexity of emerging attacks. Consequently, there's a pressing need for robust contextual detection strategies capable of preemptively thwarting intrusions to mitigate potential losses.

Fraudulent activities span various domains, including money laundering, cyber threats, tax evasion, identity theft, and insurance fraud, prevalent across industries like finance, government, healthcare, and insurance. To counteract the increasing opportunities for fraud, businesses are adopting modern technologies and risk management approaches, leveraging big data, real-time monitoring, and advanced analytics such as machine learning and AI. Industries like banking, healthcare, and e-commerce recognize the need to upgrade outdated systems, though some still rely on traditional investigation methods, despite their inefficiencies. The evolving sophistication of threats necessitates agile detection tools, potentially driving wider adoption of fraud detection and prevention solutions.

Financial services endure the brunt of online fraud, particularly through account takeovers orchestrated via a blend of manual and bot-driven methods. Instances of social media fraud, such as counterfeit registrations and installations, pose detection challenges due to their sheer volume. Inadequacies in fraud detection and prevention mechanisms often lead to reputational damage and financial repercussions, including diminished trust, heightened operational expenses, and revenue depletion for individuals and businesses alike. The escalating complexity and prevalence of fraud fuel the demand for sophisticated solutions capable of comprehensively analyzing user behavior patterns and offering a holistic data perspective. In the face of expanding internet services and digital data, a comprehensive approach becomes imperative in combatting online fraud effectively.

US Fraud Detection And Prevention Market is poised to grow at a sustainable CAGR for the next forecast year.

Global Fraud Detection And Prevention Market Report Snapshots

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FAQs

The Global Fraud Detection and Prevention Market is highly competitive and characterized by the presence of several key players. The market is driven by 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. 'IBM Corporation', 'Oracle Corporation', 'SAS Institute Inc.', 'FICO', 'NICE Actimize', 'Experian Information Solutions, Inc.', 'ACI Worldwide Inc.', 'BAE Systems', 'ThreatMetrix Inc.', 'DXC Technology', 'RSA Security LLC', 'Kount Inc.', 'LexisNexis Risk Solutions Groupiovation Inc.', 'Splunk Inc.', 'Easy Solutions Inc.', 'Feedzai', 'Forter', 'Simility', 'Pindrop Security'

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.

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.

North America is poised to emerge as the primary contributor to the global fraud detection and prevention market, occupying more than 41% of the fraud detection and prevention industry in 2023 and is driven by its status as one of the most impacted regions worldwide by money laundering and terrorist financing activities. Consequently, it hosts a substantial number of fraud detection and prevention providers. Banks, governmental bodies, and financial institutions in this region grapple with escalating fraud complexities, prompting the adoption of sophisticated technological frameworks for fraud mitigation. As the world progresses towards interconnectedness and digitalization, safeguarding critical enterprise infrastructures and sensitive data emerges as a paramount concern. North America, renowned for its technological prowess, leads the global landscape in terms of cybersecurity vendor presence.

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