Fraud Detection And Prevention Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 47.89 Billion |
| Market Size (2029) | USD 126.69 Billion |
| CAGR (2024 - 2029) | 21.48 % |
| Fastest Growing Market | North America |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Fraud Detection And Prevention Market Analysis
The Fraud Detection And Prevention Market size is estimated at USD 47.89 billion in 2024, and is expected to reach USD 126.69 billion by 2029, growing at a CAGR of 21.48% during the forecast period (2024-2029).
Fraud detection is typically a central component of a firm's loss prevention strategy, and in some cases, it is part of an organization's broader AML (anti-money laundering) compliance efforts. When fraud detection and related functions are incorporated into a broader AML context, the combination of the two is sometimes called "Fraud and Anti-Money Laundering" or "FRAML."
• Fraud detection helps companies protect their customers' transactions and accounts by spotting fraudulent activity before or as it occurs. According to the FBI, elder fraud victims lost an average of over USD 35,101 per victim in the United States in 2022, resulting in an overall loss of over USD 3 billion. Global fraud losses in 2021 exceeded USD 55 billion with technology enabling illegal funds to cross borders.
• Moreover, synthetic identity fraud cost US financial institutions an estimated USD 20 billion in losses in 2023. As the world becomes more digital, fraudsters are continuously evolving their tactics, and businesses need to improve their fraud prevention measures to protect assets and clients from fraud.
• As the world comes to terms with fraud's increasing diversity and sophistication of typologies, more regulation and enforcement will impact compliance requirements across the board. While a firm may not be directly subject to direct requirements today, fraud is a prerequisite for money laundering and can be linked to a broader criminal network. Firms incorporating fraud into their overall risk management strategy can improve consumer protection, compliance, loss management, and financial crime prevention.
• The efficiency of fraud mechanisms backs each vertical based on customer expectations. Fraud across various industries may include card payment fraud, healthcare reimbursement fraud, data anomalies, suspicious activities, money laundering, and various transaction risks.
• Various systems or fraud prevention tools make it difficult to cover all lines of defense and maintain a holistic view of risk exposure. Furthermore, they can result in a poor customer experience. If a consumer is using multiple vendors for different types of fraud detection across various channels, it is challenging to implement a consistent, integrated approach and the right risk balance. This is expected to restrain the market's growth.
• However, investments are being made to improve the fraud infrastructure and the preventative control framework. Firms are integrating machine learning and automated alert generation with behavioral analytics to better prevent bad actors from accessing their networks. In particular, machine learning and behavioral analytics will help identify fraudulent patterns that enable agile preventative controls to be developed and adapted to the latest fraud trends. Increasing fraud training and awareness will strengthen a company's prevention strategy and help fight fraud. Thus, with the growth in future investment in fraud detection solutions, the market is expected to grow in the forecasted period.
Fraud Detection And Prevention Market Trends
BFSI Sector to be the Largest End-user Industry
- Fraudulent activities in the BFSI industry have evolved over the decades. While it was previously limited to cheque frauds and wire frauds, with the growth of the cybersphere and the accompanying expansion of the cybercriminal realm, it has taken on more virtualized forms.
- The increasing technological penetration, coupled with digital channels such as Internet banking and mobile banking, are becoming prominent choices of customers for banking services, making it a crucial need for banks to leverage fraud prevention solutions.
- Fraud prevention and detection represent one of the biggest areas of concern for financial institutions and are likely to become prominent drivers of IT spending. Moreover, online transactions, insurance claims, and card-related frauds have been increasing the usage of these solutions in the insurance, banking, and financial services sectors.
- The potential risk of fraud has been one of the biggest in online and digital payments, and it is anticipated to grow with the availability of digital customer relationships as more companies offer online payments.
Asia-Pacific is Expected to Hold Significant Market Share
- Digital transactions in North America and online banking are increasing remarkably, thus increasing the chances of fraud. Fraud detection and prevention solutions can help prevent any online breach of sensitive data and transactions. Rising fraud cases are expected to propel the market's growth over the predicted period.
- Cybercriminals are increasingly targeting businesses and medical institutions to gain the personal data of the victims. Personal data is often used for engineering attacks, which is more likely to trick the victim than traditional cyberattacks. In 2023, the number of data compromises in the United States stood at 3,205 cases. Meanwhile, over 353 million individuals were affected in the same year by data compromises, including data breaches, leakage, and exposure.
- The region has a strong foothold of fraud detection and prevention solution vendors contributing to the market's growth. Some include IBM Corporation, SAS Institute Inc., DXC Technology, RSA Security LLC, and Oracle Corporation.
- Various regional companies are continuously involved in product innovations to meet advanced cyber threat requirements. For instance, in November 2023, Abrigo, a provider of compliance, credit risk, and lending solutions for financial institutions, entered a strategic partnership with Mitek, a mobile deposit and fraud prevention player. This partnership provides community financial institutions the tools to combat financial crimes like check fraud.
Fraud Detection and Prevention Industry Overview
The fraud detection and prevention market is fragmented and very competitive. The major players in the market are SAP SE, IBM Corporation, SAS Institute Inc., ACI Worldwide Inc., and many more. However, owing to significant innovations in product lines, only some new entrants are attracting major investments into the market.
• In March 2024, ACI Worldwide (ACI) announced a strategic partnership with comforte AG (comforte AG) to support customers' compliance with PCI DSS (Payment Card Industry Data Security) standards. ACI and Comforte will work together to meet the new PCI DSS standards (v4.0). As part of the partnership, Comforte will provide ACI with data-centric solutions that ACI has thoroughly tested to ensure they are interoperable with ACI solutions.
• In October 2023, Fiserv announced that it had acquired Skytef, a leading distributor of Software Express' SiTef® in Brazil, from Fiserv. Skytef brings Fiserv's distribution network in Brazil to over 1,000 partners, including more than 600 Independent Software Vendors (ISVs) and 27,000 merchants.
Fraud Detection and Prevention Market Leaders
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SAP SE
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IBM Corporation
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SAS Institute Inc.
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ACI Worldwide Inc.
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Fiserv Inc.
*Disclaimer: Major Players sorted in no particular order
Fraud Detection and Prevention Market News
- October 2023 - Nymcard, one of the largest card issuers in the MENA region, has partnered with ACI Worldwide, the world’s leading provider of mission-critical real-time point-of-sale (POS) payment solutions, to improve its fraud platform and protect its clients from the increasing incidence of financial fraud.
- September 2023 - Mastercard and Oracle partnered to Automate B2B Payments. The partnership aims to address the challenges faced by many companies in making commercial payments, such as disparate data, systems, and processes. By leveraging Mastercard’s virtual card technology, Oracle will enable organizations to securely connect and share information across all trading parties, simplifying end-to-end financial transactions for corporate customers. Organizations can replace traditional payment methods with secure virtual cards for corporate purchases, increasing fraud protection, per the release. Procurement teams can manage employee virtual card requests, supporting business purchases on demand.
Fraud Detection & Prevention Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitutes
4.3.5 Intensity of Competitive Rivalry
4.4 Assessment of the Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Volume of Non-cash Payment/transaction
5.1.2 Increasing Frauds in BFSI Sector
5.2 Market Restraints
5.2.1 Lack of Integration Capability with All Verticals
6. MARKET SEGMENTATION
6.1 By Solution
6.1.1 Fraud Analytics
6.1.2 Authentication
6.1.3 Reporting
6.1.4 Visualization
6.1.5 Governance, Risk, and Compliance (GRC) Solutions
6.2 By Scale of End User
6.2.1 Small-scale
6.2.2 Medium-scale
6.2.3 Large-scale
6.3 By Type of Fraud
6.3.1 Internal
6.3.2 External
6.4 By End-user Industry
6.4.1 BFSI
6.4.2 Retail
6.4.3 IT and Telecom
6.4.4 Healthcare
6.4.5 Energy and Power
6.4.6 Manufacturing
6.4.7 Other End-user Industries
6.5 By Geography
6.5.1 North America
6.5.2 Europe
6.5.3 Asia
6.5.4 Australia and New Zealand
6.5.5 Latin America
6.5.6 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 SAP SE
7.1.2 IBM Corporation
7.1.3 SAS Institute Inc.
7.1.4 ACI Worldwide Inc.
7.1.5 Fiserv Inc.
7.1.6 Experian PLC
7.1.7 DXC Technology Company
7.1.8 BAE Systems PLC
7.1.9 RSA Security LLC (Dell Technologies Inc.)
7.1.10 Oracle Corporation
7.1.11 NICE Ltd
7.1.12 Equifax Inc.
7.1.13 LexisNexis Group
7.1.14 Fair Isaac Corporation
7.1.15 Cybersource Corporation
7.1.16 Global Payments Inc.
7.1.17 Feedzai Inc.
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
Fraud Detection And Prevention Industry Segmentation
The fraud detection and prevention market is defined by the revenue generated from the sale of fraud detection and prevention solutions offered by different market players. The market trends are evaluated by analyzing the investment track in fraud solutions.
The fraud detection and prevention market is segmented by solution (fraud analytics, authentication, reporting, visualization, governance, risk, and compliance (GRC) solutions), by scale of end user (small-sale, medium-scale, large-scale), type of fraud (internal, external), end-user industry (BFSI, retail, IT and telecom, healthcare, energy and power, manufacturing, and other end-user industries), and geography (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa). The market size and forecasts are provided in terms of value (USD) for all the above segments.
| By Solution | |
| Fraud Analytics | |
| Authentication | |
| Reporting | |
| Visualization | |
| Governance, Risk, and Compliance (GRC) Solutions |
| By Scale of End User | |
| Small-scale | |
| Medium-scale | |
| Large-scale |
| By Type of Fraud | |
| Internal | |
| External |
| By End-user Industry | |
| BFSI | |
| Retail | |
| IT and Telecom | |
| Healthcare | |
| Energy and Power | |
| Manufacturing | |
| Other End-user Industries |
| By Geography | |
| North America | |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
Fraud Detection & Prevention Market Research FAQs
How big is the Fraud Detection And Prevention Market?
The Fraud Detection And Prevention Market size is expected to reach USD 47.89 billion in 2024 and grow at a CAGR of 21.48% to reach USD 126.69 billion by 2029.
What is the current Fraud Detection And Prevention Market size?
In 2024, the Fraud Detection And Prevention Market size is expected to reach USD 47.89 billion.
Who are the key players in Fraud Detection And Prevention Market?
SAP SE, IBM Corporation, SAS Institute Inc., ACI Worldwide Inc. and Fiserv Inc. are the major companies operating in the Fraud Detection And Prevention Market.
Which is the fastest growing region in Fraud Detection And Prevention Market?
North America is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Fraud Detection And Prevention Market?
In 2024, the North America accounts for the largest market share in Fraud Detection And Prevention Market.
What years does this Fraud Detection And Prevention Market cover, and what was the market size in 2023?
In 2023, the Fraud Detection And Prevention Market size was estimated at USD 37.60 billion. The report covers the Fraud Detection And Prevention Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Fraud Detection And Prevention Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Fraud Detection and Prevention Industry Report
The Fraud Detection and Prevention Market Report provides a comprehensive industry analysis segmented by various solutions, including fraud analytics, authentication, reporting, visualization, and governance, risk, and compliance (GRC) solutions. The market size and market share are evaluated across different scales of end-users, such as small-scale, medium-scale, and large-scale enterprises. The report also delves into the types of fraud, distinguishing between internal and external fraud, and examines the impact across multiple end-user industries including BFSI, retail, IT and telecom, healthcare, energy and power, manufacturing, and other sectors.
The market overview highlights the significant market growth driven by the increasing need for robust fraud detection and prevention mechanisms. The industry reports indicate that the market leaders are leveraging advanced technologies to enhance fraud analytics and authentication solutions. The market forecast suggests a positive industry outlook, with substantial market predictions pointing towards continued growth in the market value.
In terms of geography, the market segmentation covers North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. The industry research provides detailed market data and industry statistics, offering insights into the market trends and market review. The report pdf serves as an essential resource for research companies looking to understand the market dynamics and industry sales.
The industry information and industry size are crucial for stakeholders to make informed decisions. The report example illustrates the depth of market analysis and market segmentation, providing a clear industry outlook. The market leaders are expected to continue driving innovation, contributing to the overall market growth rate. The report also includes a market forecast and market predictions, emphasizing the importance of staying updated with industry trends and industry statistics.
Overall, the Fraud Detection and Prevention Market Report is a valuable resource that combines extensive industry research with practical insights, helping businesses navigate the complex landscape of fraud prevention and detection.
