Fraud Detection and Prevention Market Analysis North America,Europe,APAC,South America,Middle East and Africa - US,China,Japan,UK,Germany - Size and Forecast 2023-2027

Fraud Detection and Prevention Market Forecast 2023-2027

The global fraud detection and prevention market size is forecast to increase by USD 47.39 billion. The market is estimated to grow at a CAGR of 20.22% between 2022 and 2027. The growth of the market depends on several factors, including the growing adoption of cloud-based services, increasing fraud-related activities globally, and the rising number of online transactions worldwide. The market focuses on the strategies that are taken to detect and prevent attempts to secure money or property by deception. These solutions and services help organizations to analyze complex and huge data sets to reduce false positives, detect anomalies, and provide end-to-end advanced fraud management solutions and services. This market analysis and report also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the Size of the Fraud Detection And Prevention Market During the Forecast Period?

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The Global Fraud Detection and Prevention Market is experiencing significant growth, driven by the increasing adoption of advanced authentication solutions and real-time fraud detection technologies. Businesses are leveraging Unsupervised Machine Learning (UML) engines and Business Intelligence (BI) tools to enhance their capabilities in combating emerging threats like Account Take Overs (ATO), phishing scams, and identity theft. Moreover, the market is witnessing rising demand for professional and managed services tailored to the needs of Small and Medium Enterprises (SMEs), further bolstering the efficacy of payment fraud applications and strengthening overall fraud prevention strategies.

Market Dynamics and Customer Landscape

The market caters to diverse sectors like BFSI, healthcare, manufacturing, and governments, safeguarding end-use enterprises against financial risks. Leveraging cloud-based solutions and Big Data analytics, it tackles emerging threats, including fraud, money laundering, and authentication breaches. Blockchain technology ensures secure transactions, while mobile banking services offer convenience. With a focus on governance, risk, and compliance, the market employs advanced fraud analytics and real-time detection tools. Additionally, authentication solutions combat identity theft and phishing scams, providing robust security across industries. Professional and managed services support SMEs in implementing effective fraud prevention measures, bolstering global financial stability.

Key Market Driver - Growing adoption of cloud-based services

There is a growing adoption of cloud-based services across agencies due to its increasing applications such as authentication processes, video management, biometric information storage, and big data computing. One of the main reasons for its preference is its flexibility and scalability which help organizations in meeting their varying requirements. Cloud data security is one of the key priorities for government organizations as they generate massive volumes of data on a daily basis and also need to ensure their security. Thus, there is increasing adoption of cloud-based services as several defense agencies do not have their own security infrastructure. Hence, the rising adoption of cloud-based services and growing cloud data security concerns are expected to lead to the increased adoption of military-grade cybersecurity solutions which in turn will drive the market growth during the forecast period.

Significant Market Trends - Technological advancements 

Technological advancement mainly involves the discovery of knowledge that advances the understanding of technology.  For example, in October 2022, DG Financial Technology Inc, a service provider company in Japan, partnered with Scudetto Corporation, a Japan-based company specializing in online fraud prevention, and launched an artificial intelligence (AI) built fraud detection solution named Sift Digital Trust & Safety Suite (Sift). Sift solution that uses artificial intelligence to detect fraud and abuse in the e-commerce space, including account takeover and credit card fraud, to minimize the damage from chargebacks and other fraudulent activities by streamlining fraud prevention operations and thereby, increasing revenue. Hence, such technological advancements can significantly drive market growth during the forecast period.

Major Market Challenges - Complex IT infrastructure 

Even though the Internet of Things (IoT)  has high scope for growth and acceptance as it enhances the connectivity among devices and facilitates machine-to-machine (M2M) communication, the implementation of Internet of Things (IoT)  has resulted in a complex IT infrastructure that connects cloud computing, big data, and mobile devices, leading to a network of devices that lack security features.Thus, organizations are finding it hard to provide maximum security and service to their businesses because it is difficult to identify legitimate end-user devices to connect and exchange data in such a complex network. Hence, security maintenance and confidentiality in such a complex network infrastructure is a challenge for key vendors. Such factors can pose a significant threat to the market growth during the forecast period.

Customer Landscape

This Market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, this market research and growth report and analysis also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.

Global Market Customer Landscape

Market Segmentation

The component segment of the market encompasses various technologies and solutions aimed at combating fraudulent activities across different sectors. End-use enterprises and governments are increasingly adopting fraud detection and prevention solutions to safeguard their assets and sensitive information. Cloud-based solutions offer scalability and flexibility, enabling organizations to efficiently manage and mitigate fraud risks. While blockchain technology has shown potential in enhancing security, its adoption in fraud detection remains limited. Mobile banking services are a prime target for fraudsters, driving the demand for robust fraud detection mechanisms and fraud analytics tools. These solutions help identify suspicious activities, such as money laundering and electronic payment fraud, thereby protecting both financial institutions and consumers. Across industries like IT and telecom, travel and transportation, retail, consumer packaged goods, energy, and utilities, fraud detection and prevention solutions play a crucial role in safeguarding assets and ensuring regulatory compliance. By leveraging advanced technologies and analytics, organizations can proactively detect and prevent fraudulent behavior, minimizing financial losses and reputational damage.

By Component

The market share growth by the solutions segment will be significant during the forecast period. There has been a rising adoption solutions across IT departments of organizations due to the growing incidences of intrusion, the requirement, and infringement. For instance, Biometrics authentication was one of the major revenue contributors in the solutions segment. 

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The solutions segment was valued at USD 10.21 billion in 2017 and continued to grow until 2021. Factors such as the rise in terror threats, increased security project initiatives, and the development of national ID cards are fuelling the market growth of this segment. But besides these applications and benefits, the increasing cost of biometric technology is expected to have an adverse effect on the revenue generated by this segment. On the other hand, there is increasing adoption of smart cards in various sectors such as banking, financial services, insurance (BFSI), transportation, retail, government, healthcare, and education due to their ability to store the ability to efficiently store and process information of an individual. Hence such potential benefits and applications are expected to fuel the demand of this segment which in turn will drive the market growth during the forecast period.

Regional Overview

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North America is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Factors such as there are several leading vendors providing solutions and services in the US, including IBM, Intel, Symantec, Akamai Technologies, Check Point Software Technologies, and Cisco Systems, that dominate the global market, and which expected to maintain the dominance of the US in the market. There is an increasing threat of cyber threats in North America due to the technological advances in terms of data use and sharing and the deployment of cloud-based systems for storage. Thus, it can fuel the demand for new solutions across IT organizations. Hence, such factors are expected to drive the market growth in North America during the forecast period.

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

ACI Worldwide Inc: The company offers solutions such as incremental machine learning for fraud management.

The research report also includes detailed analyses of the competitive landscape of the market growth and trends and information about 15 market companies, including:

• ACI Worldwide Inc.
• BAE Systems Plc
• Besedo Ltd.
• Consultadoria e Inovacao Tecnologica S.A.
• Dell Technologies Inc.
• Equifax Inc.
• Experian Plc
• Fair Isaac Corp.
• Fiserv Inc.
• Forter Ltd.
• Global Payments Inc.
• International Business Machines Corp.
• NICE Ltd.
• Oracle Corp.
• RELX Plc
• SAP SE
• SAS Institute Inc.
• SEON Technologies Kft.
• Software AG
• Visa Inc.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Analyst Overview

The market is witnessing exponential growth driven by the increasing adoption of cloud-based solutions across various industries, including manufacturing, IT and telecom, and retail and consumer packaged goods. Governments and end-use enterprises are increasingly investing in advanced technologies such as the Internet of Things (IoT) to enhance security measures. With the rise of mobile banking services, governance, risk, and compliance have become paramount, particularly in sectors prone to fraud such as insurance claims and electronic payment scams. Unsupervised Machine Learning (UML) Engine and Business Intelligence (BI) tools are deployed for real-time fraud detection, targeting Account Take Overs (ATO), payment fraud, and phishing scams. Managed services and professional services are crucial for ensuring robust fraud prevention strategies amid evolving threats like identity theft.

The market is experiencing rapid expansion fueled by advancements such as block chain technology, enabling more secure transactions across various sectors. Fraud analytics tools are crucial in identifying and mitigating risks associated with money laundering and electronic payment scams in industries like travel and transportation, energy and utilities, construction and real estate. Authentication solutions are being deployed to enhance security measures, particularly in sectors prone to fraud, such as media and entertainment. Additionally, the use of specialized payment fraud application is becoming increasingly important in combating fraudulent activities. As businesses seek to protect themselves from financial losses and reputational damage, the demand for robust fraud detection and prevention solutions continues to grow across diverse industries.

The market is witnessing significant growth, driven by the adoption of advanced technologies like Guidewire Software and online applications. However, challenges persist, including a lack of professionals skilled in fraud detection and prevention. Enterprises are leveraging on-premise solutions and gaining insights through components, services, and applications to combat revenue losses attributed to financial fraud. The market is embracing digital technologies such as risk-based authentication solutions and analytics tools like batch, streaming, and predictive analytics to enhance fraud detection capabilities. Amid economic uncertainty, organizations are prioritizing fraud prevention measures to safeguard against potential losses and maintain financial stability in an increasingly complex landscape.

Segment Overview

This report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Component Outlook 
  • Solutions
  • Services
• End-user Outlook 
  • Large enterprise
  • SMEs
• Geography Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

 

Market Scope
Report Coverage	Details
Page number	160
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 20.22%
Market growth 2023-2027	USD 47.39 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	18.78
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 39%
Key countries	US, China, Japan, UK, and Germany
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	ACI Worldwide Inc., BAE Systems Plc, Besedo Ltd., Consultadoria e Inovacao Tecnologica S.A., Dell Technologies Inc., Equifax Inc., Experian Plc, Fair Isaac Corp., Fiserv Inc., Forter Ltd., Global Payments Inc., International Business Machines Corp., NICE Ltd., Oracle Corp., RELX Plc, SAP SE, SAS Institute Inc., SEON Technologies Kft., Software AG, and Visa Inc.
Market dynamics	Market trends and analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the size of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behaviour
• Market growth analysis across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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