Fraud Detection and Prevention Market Outlook
The global fraud detection and prevention market size was valued at USD 23.26 Billion in 2022 and is likely reach to USD 112.15 Billion by 2031, expanding at a CAGR of 19.1% during the forecast period, between 2023 and 2031.
Fraud is defined as any illegal act that involves deceiving someone knowingly with an unfair and unlawful intent for financial or personal benefit. Fraud detection and prevention systems are software applications that give analytic solutions for fraud incidences and aid in the detection and prevention of future occurrences.
North America was a major region for fraud detection systems in 2016, due to industrial expansion and increasing fraudulent activities in the region. Businesses are vulnerable to fraud incidences that result in financial losses, due to the creation of huge volumes of organizational data and technological advancements.
Market Trends, Drivers, Restraints, Opportunities, and Challenges:
- Internet users are not limited to online search and social networking and expanded their activities to include online banking and shopping. People ceased leaving their homes, due to COVID-19 lockout limitations, and a major portion of the population began internet transactions.
- Identity fraud gradually moved from the offline to the online world. Fraud accounts surged and fraudulent activities are becoming increasingly sophisticated.
- Banking and financial services industries are early users of risk-prevention technology. Financial organizations are extremely vulnerable as a result of huge internet data exchanges.
- Shortage of trained employees to deal with fraudulent operations is one of the main challenges of enterprises. Under a cyberattack, security specialists lack the necessary abilities to assess and detect complex frauds in an organization.
Scope of Fraud Detection and Prevention Market report:
The report on the global fraud detection and prevention market includes an assessment of the market, size, share, trends, segments, and regional markets. The study includes an overview as well as dynamics.
Fraud Detection and Prevention Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Components (Solutions [Fraud Analytics, Predictive Analytics, Customer Analytics, Social Media Analytics, Big Data Analytics, and Behavioral Analytics] Authentication [Single-factor Authentication and Multifactor Authentication]), and Services [Professional and Managed]), Applications (Insurance Claims, Money Laundering, Electronic Payment, and Others), Deployment (Cloud and On-premise), End-users (Small & Medium Enterprises [SMEs], Large Enterprises, BFSI, Retail, Healthcare, Real Estate, Manufacturing, and others)
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
Accertify Inc., BAE Systems. Inc, CaseWare International Inc, DataVerify, Datavisor Inc, Digital Resolve, DXC Technologies, FCASE Ltd, FICO, Gurucul, and others.
Fraud Detection and Prevention Market Segment Insights
Increasing demand for Fraud Analytics Solutions aids market growth
In terms of components, the market is segmented into solutions, authentication, and services. Fraud analytics, predictive analytics, customer analytics, social media analytics, big data analytics, and behavioral analytics are the sub-segments under the solutions segment.
During the forecast period, the services segment is expected to grow at a significant rate, due to increased demand for professional services such as consulting, training & education, and support & maintenance.
The authentication segment is expected to gain a significant proportion of the market during the forecast period. Adding more security layers and blockades makes it difficult for an intruder to access secret information. In August 2019, Microsoft Corporation reported that multi-factor authentication prevents approximately 99.9% of attacks.
Increasing popularity of electronic payment to drive the market
Based on applications, the fraud detection and prevention market is classified into insurance claims, money laundering, electronic payment, and others. During the forecast period, the electronic payment category is expected to have a substantial market share.
Increased popularity of mobile banking, online payment, mobile wallets transactions, SMS, and other services contributes to the growth of the segment.
The insurance claims industry is projected to grow rapidly, due to increasing fraudulent claims such as disaster insurance fraud, contractor insurance fraud, cloud accident insurance fraud, and break-in insurance, among others.
Rising cloud-based solutions to drive the market
On the basis of deployment, the market is classified into cloud and on-premise. During the projected period, the cloud segment is expected to develop at a rapid CAGR. Rising cloud-based fraud protection solutions over traditional and on-premise approaches is primarily responsible for the growth of the segment.
The on-premise market is expected to grow steadily, due to dependable solutions and services in government and education sectors.
Small and Medium Enterprises [SMEs] to drive the market
By end-users, the market is segmented into large enterprises, small & medium enterprises [SMEs], BFSI, retail, healthcare, real estate, manufacturing, and others. During the projection period, the small and medium enterprises [SMEs] segment is expected to expand at a high CAGR, due to increased demand for solutions and increasing number of start-ups in India, Germany, Brazil, Israel, Canada, and other countries.
The large enterprises segment is projected to grow rapidly, due to the rising trend of digitalization to use modern software and apps. The healthcare segment is anticipated to expand at a high CAGR, owing to the rising adoption of fraud analytics and authentication solutions in healthcare.
Fraud Detection and Prevention Market Regional Outlook
North America to hold a significant share of the market during the forecast period
The market in North America is projected to contribute to the fraud detection and prevention market in terms of market size. As a result, it has the largest number of fraud detection and prevention providers. It is one of the most afflicted regions in the world by money laundering and terrorism financing illegal operations.
Banks, governments, and financial institutions in this region are confronted with ever-increasing fraud concerns, necessitating the implementation of innovative technical techniques for fraud management. As the world moves towards interconnectivity and digitalization, protecting enterprise-critical infrastructures and sensitive data has become one of the primary issues.
- Fraud Analytics
- Predictive Analytics
- Customer Analytics
- Social Media Analytics
- Bigdata Analytics
- Behavioral Analytics
- Single-Factor Authentication
- Multifactor Authentication
- Insurance Claims
- Money Laundering
- Electronic Payment
- Small & Medium Enterprises (SMEs)
- Large Enterprises
- Real Estate
- North America
- Latin America
- Asia Pacific
- Middle East & Africa
By Key Players
Key players in the fraud detection and prevention market include Accertify Inc., BAE Systems. Inc, CaseWare International Inc, DataVerify, Datavisor Inc, Digital Resolve, DXC Technologies, FCASE Ltd, FICO, Gurucul, and others.
Companies adopted various organic and inorganic growth strategies such as product launches, product enhancements, partnerships, agreements, mergers, and acquisitions to expand their presence. Detailed analysis of major companies, which include company overview, financials, products offerings, recent developments, and others, is covered in the report.