The Fraud Detection and Prevention (FDP) solutions assist in managing data breaches and preventing money laundering along with improving organizations' operational efficiency. In addition, it detects, monitors investigate fraudulent activities in real-time in order to decrease the risk of Non-Performing Assets (NPAs). It further helps organizations in providing efficient service delivery & product innovation, making business decisions, and enhance the customer experience.
The global market for the Fraud Detection and Prevention is anticipated to develop at a compound annual growth rate (CAGR) of 22.71% throughout the course of the forecast, to reach $104.86 Billion by 2030.
The global Fraud Detection and Prevention market size is anticipated to reach over USD 88 billion by 2025. This can be attributed to the growing number of data breaches and complex cyber-attacks are the key factors fueling the demand for Fraud Detection and Prevention solutions. Moreover, growing revenue losses are also one of the key factors fueling the demand for Fraud Detection and Prevention solutions among various industry verticals. In addition, an increasing number of electronic transactions are also fueling the market growth.
Furthermore, the application of ML and AI in FDP solutions are anticipated to provide major opportunities for the market in the upcoming years. However, huge costs associated with the deployment of Fraud Detection and Prevention solutions are anticipated to hamper the market growth.
Key Segment Of The Fraud Detection and Prevention Market
By Solution, 2022-2030(USD Million)
• Fraud Detection
• Data Synthesis
By Service, 2022-2030(USD Million)
• Professional Service
• Managed Service
By Application, 2022-2030(USD Million)
• Insurance Claims
• Money Laundering
• Electronic Payment
By Organization Size, 2022-2030(USD Million)
• Large Enterprises
Regional Overview, 2022-2030 (USD Million)
• Rest of Europe
• Rest of Asia Pacific
• Rest of South America
Middle East and South Africa
Frequently Asked Questions (FAQ) :
With growing implementation of IoT and connected devices, end-users are significantly adopting new-age transaction facilities including online payment. This is resulting in advanced digital landscape. However, changing digital landscape is also boosting the demand for fraud detection and prevention solutions due to growing number of fraudulent activities. Growing digitization and rising adoption of smartphones are also contributing to the growth of fraudulent activities as people are shifting from traditional payment systems to the mobile wallets, UPI, and online payment systems. This is resulting in increasing frauds and identity theft incidents across the globe. BFSI is among the key end-users adopting fraud detection and prevention solutions, predominantly to protect their customers from fraudulent activities. Hence, to safeguard their customer data, financial institutions are adopting fraud detection and prevention solutions to accurately and efficiently detect abnormalities at the level of cardholders, locations, merchants, and accounts.
Fraud Type Segment
On the basis of Fraud Type, the market is categorized into Money Laundering, Identity Theft, Payment Fraud, IP Theft, and Others. The payment fraud segment dominated the overall Fraud Detection and Prevention market and is expected to maintain its position over the forecast period 2020 -2025. Moreover, the IP Theft segment is anticipated to accumulate the highest CAGR of close to 33% during the forecast period.
Based on solutions, the market is segmented into Real-Time Analytics, Authentication, Risk, and Compliance, and others. The Authentication solutions are further divided into single-factor and multi-factor authentication. In 2019, the market for authentication solution seized the highest revenue and is expected to dominate the Fraud Detection and Prevention market throughout the forecast period.
Industry Vertical Segment
On the basis of Industry Vertical, the market is bifurcated into IT & Telecom, BFSI, Retail, Manufacturing, Healthcare, and Others. In 2019, the manufacturing segment captured the highest market revenue and is anticipated to dominate the Fraud Detection and Prevention market throughout the forecast period. On the contrary, the BFSI industry is projected to gather the highest CAGR of close to 37% during the forecast period.
Based on the geographical front, Asia-Pacific dominated the global Fraud Detection and Prevention market in 2019 and is expected to dominate the market throughout the forecast period 2020–2025. It is expected to have the largest market revenue with close to 8 Billion in 2019. The growth of this region is mainly accredited to the growing penetration of smartphones and increasing government initiatives for digital/E-payments in countries such as China, Japan, India, Singapore, and others in this region.
Moreover, Middle-East & Africa region is anticipated to gather the highest CAGR close to 32% during the forecast period.
The major players of the global Fraud Detection and Prevention market are BAE Systems, Dell technologies, DXC Technology, Experian, First Data, Fiserv, IBM, SAP, SAS, and Securonix. Moreover, the other potential players in the Fraud Detection and Prevention Market are FICO, ACI Worldwide, LexisNexis, NICE Systems, and Risk solutions. As of 2019, the Fraud Detection and Prevention market is fragmented with the existence of established global and domestic players across the globe. In addition, the established companies are coming up with new innovative Fraud Detection and Prevention solutions and services. For instance, In November 2019, FIS, a financial service provider collaborated with IBM. The collaboration is aimed at the company’s strategy to provide person-to-person services in order to prevent fraud in real-time by integrating with IBMs Safer Payment Solution.