What Factors Propelled The Growth Of The Fraud Detection and Prevention Market In The Past?
The fraud detection and prevention market has seen considerable growth due to a variety of factors.
• In the past few years, the size of the market for fraud detection and prevention has seen significant growth. It is projected to advance from a market size of $50.72 billion in 2024 to $61.01 billion in 2025, indicating a Compound Annual Growth Rate (CAGR) of 20.3%.
The spike observed in the historical period can be connected to factors like the continual rise in financial transactions' digitization, escalation in online banking and e-commerce activities, advancements in fraud techniques, need for regulatory compliance, and the unfolding expansion of mobile and online payment systems.
What Is The Projected Growth And Market Size For The Fraud Detection and Prevention Sector?
The fraud detection and prevention market is expected to maintain its strong growth trajectory in upcoming years.
• In the upcoming years, it is anticipated that the fraud detection and prevention market will undergo tremendous growth. The market is predicted to expand to $130.79 billion by 2029, with a compound annual growth rate (CAGR) of 21.0%.
This growth throughout the forecast period is likely attributable to the rising necessity for safeguarding SMEs from fraud. Further factors aiding in this growth include improved operational efficiency, enhanced customer experience, the requirement for efficient management of large volumes of identities by organisations, soaring adoption of high-end analytic techniques, and the enlargement of real-time monitoring features. The forecast period is also expected to witness key trends like the incorporation of artificial intelligence in fraud detection, the introduction of blockchain technology for secure transactions, collaborations amongst industry stakeholders for sharing information, combinatorial approach towards cybersecurity and fraud prevention measures, and the continuous renovation of fraud techniques necessitating dynamic solutions.
What Factors Are Driving Growth In The Fraud Detection and Prevention Market?
The surge in cyberattacks and fraud incidents is propelling the expansion of the fraud detection and prevention market. The International Criminal Police Organization's assessment of the effects of COVID-19 on cybercrime reveals a major target shift from individuals and small businesses to big corporations. For example, in October 2023, AAG, an IT service provider based in the UK, issued a report indicating a 125% increase in global cyberattacks, and in 2022, the threats posed by such attacks to individuals and organizations have further escalated. As a consequence, the rising frequency of cyberattacks and fraud incidents is accelerating the expansion of the fraud detection and prevention market.
What Are The Main Segments Of The Global Fraud Detection and Prevention Market?
The fraud detection and prevention market covered in this report is segmented –
1) By Fraud Type: Check Fraud, Identity Fraud, Internet Or Online Fraud, Investment Fraud, Payment Frauds, Insurance Fraud, Other Fraud Types
2) By Deployment Mode: Cloud, On-premises
3) By Solution: Fraud Analytics, Authentication, Reporting, Visualization, Other Solutions
4) By Application: Insurance claims, Money laundering, Electronic Payment
5) By End User: Small and Medium Enterprises (SMEs), Large Enterprises
Subsegments:
1) By Check Fraud: Forged Checks, Counterfeit Checks, Altered Checks
2) By Identity Fraud: Identity Theft, Synthetic Identity Fraud, Account Takeover
3) By Internet Or Online Fraud: Phishing Scams, Online Auction Fraud, E-commerce Fraud
4) By Investment Fraud: Ponzi Schemes, Securities Fraud, Affinity Fraud
5) By Payment Frauds: Credit Card Fraud, Mobile Payment Fraud, ACH Fraud
6) By Insurance Fraud: Health Insurance Fraud, Auto Insurance Fraud, Property Insurance Fraud
7) By Other Fraud Types: Tax Fraud, Charity Fraud, Employment Fraud
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What Emerging Trends Are Influencing The Growth Of The Fraud Detection and Prevention Market?
The emergence of technological innovation is a notable trend gaining recognition in the fraud detection and prevention market. This advancement constitutes the pioneering knowledge that enhances the comprehension of technology. For instance, in October 2022, a Japan-based service providing company, DG Financial Technology Inc. (DGFT), joined forces with Scudetto Corporation, also hailing from Japan and known for its expertise in online fraud prevention. Together, they rolled out Sift Digital Trust & Safety Suite (Sift), an anti-fraud solution developed using artificial intelligence (AI). Sift, by utilising AI, detects and prevents fraudulent activities in the realm of e-commerce and online activities such as credit card frauds and account takeovers. The ultimate target is to mitigate the damage brought about by chargebacks and other forms of fraudulent misconduct by enhancing fraud prevention mechanisms and boosting revenue.
Who Are the Key Players in the Fraud Detection and Prevention Market?
Major companies operating in the fraud detection and prevention market include:
• IBM Corporation
• Fair Isaac Corporation
• Oracle Corporation
• SAS Institute Inc.
• BAE Systems plc
• DXC Technology Company
• SAP SE
• ACI Worldwide Inc.
• Fiserv Inc.
• ThreatMetrix company
• NICE Systems Ltd.
• Equifax Inc.
• Cybersource Corporation
• Global Payments Inc.
• Experian Information Solutions Inc.
• TransUnion LLC
• RSA Security LLC
• LexisNexis Risk Solutions
• Kount Inc.
• Feedzai Inc.
• Featurespace Inc.
• Pindrop Security Inc.
• Simility Inc.
• Signifyd Inc.
• Sift Science Inc.
• Idology Inc.
• Total System Services Inc.
What Is The Most Dominant Region In The Fraud Detection and Prevention Market?
North America was the largest region in the fraud detection and prevention market in 2024.Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the fraud detection and prevention market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
