Fraud Detection and Prevention Market by Offering (Solutions and Services), by Deployment Type (Cloud and On-Premises), by Enterprise Type (Small & Medium Enterprise and Large Enterprises), by Application (Money Laundering, Credit & Debit Card Fraud, Mobile Fraud, Identity Fraud, and Others), and by End User (BFSI, Government & Defense, Healthcare, IT & telecom, Retail & E-Commerce, and Others) - Global Opportunity Analysis and Industry Forecast, 2024–2030
Industry: ICT & Media | Publish Date: 11-Oct-2023 | No of Pages: 441 | No. of Tables: 337 | No. of Figures: 285 | Format: PDF | Report Code : N/A
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Fraud Detection and Prevention Market Overview
The global Fraud Detection and Prevention Market size was valued at USD 37.97 billion in 2023, and is predicted to reach USD 117.01 billion by 2030, with a CAGR of 16.5% from 2024 to 2030. Fraud detection and prevention refers to proactive measures, strategies, and technologies implemented by individuals, businesses, financial institutions, and organizations to identify, mitigate, and deter fraudulent activities, particularly in digital and financial transactions. These efforts aim to safeguard assets, sensitive information, and the integrity of systems and processes from various forms of fraudulent behavior, including identity theft, payment fraud, cyber-attacks, and unauthorized access.
Increasing Government Initiatives to Combat Fraudulent Activities
The increasing initiatives taken by governments worldwide to combat fraudulent activities drive the growth of the fraud detection and prevention market. Governments increasingly recognize the economic and societal impact of fraud, which spans across sectors, such as finance, healthcare, public services, and others. In response to this growing concern, governments are implementing various measures, including stricter regulations, increased oversight, and the promotion of advanced technologies, such as artificial intelligence and data analytics. For instance, in January 2022, the U.K. launched its first ‘Government Cyber Security Strategy’ to protect essential services and data on which citizens rely, including housing benefits, voter registration, electoral management, school grants, and social care provision.
Also, in June 2022, Canada introduced Bill C-26, a proposed law called the Act Respecting Cyber Security (ARCS). This legislation aims to enhance cyber security in sectors, such as energy, telecommunications, finance, and transportation, ensuring protection for Canadians. These initiatives raise awareness about the importance of fraud detection and prevention and create a favorable environment for businesses to invest in innovative fraud prevention solutions.
Increasing Frequency of Cyber-attacks and Fraudulent Activities
The rise in cyber-attacks from hackers and data miners, which can maliciously turn off computers, steal data, or use a breached computer as a launch point for other attacks, increases fraud detection and prevention demand. Cybercriminals employ diverse tactics to launch cyber-attacks, such as malware, phishing, ransomware, denial of service, and others.
According to a report published by the National Computer Virus Emergency Response Center, China in September 2022, China accused a U.S. National Security Agency of stealing Chinese user data and infiltrating its telecommunications infrastructure. Moreover, money laundering, tax evasion, identity theft, false insurance claims, fake bank checks, and financing of terrorism are other fraud-related activities.
The financial services, healthcare, public sector, and insurance sectors are particularly vulnerable to these fraudulent activities. Therefore, organizations are increasingly adopting cutting-edge technology for detecting and preventing fraud, as well as employing risk management strategies to counter the growing number of fraud cases.
Lack of Skilled Professionals Hinders Market Growth
The lack of skilled professionals can be a restraining factor in the fraud detection and prevention industry. This is due to the advanced technologies and techniques required to detect and prevent fraud effectively, and a shortage of skilled professionals can limit the ability of businesses and organizations to implement these technologies and techniques. A lack of professionals with expertise in artificial intelligence (AI) and machine learning (ML), which are considerably used in fraud detection and prevention, can hinder the market growth. Similarly, there may be a shortage of professionals with the required skills and knowledge for implementing and managing cyber fraud prevention measures. This factor restrains the growth of the market.
The Integration of Artificial Intelligence and Machine Learning Creates New Opportunities
The introduction of artificial intelligence (AI) and machine learning (ML) has created a new era of opportunity for the fraud detection and prevention market. These advanced technologies have revolutionized how businesses and organizations combat fraudulent activities, offering a proactive and highly-effective approach to identify and mitigate risks.
AI and ML algorithms can analyze vast datasets in real time, enabling the rapid detection of anomalies and suspicious patterns. This capability is particularly crucial in today's digital landscape, where the volume and complexity of transactions make manual monitoring virtually impossible. Furthermore, AI and ML systems can adapt and evolve over time. As fraudsters become more sophisticated, these technologies continuously learn from new data and emerging threats, enhancing their accuracy and effectiveness.
For instance, in September 2023, McAfee introduced AI-driven scam protection to detect, identify, and alert users about potential online scams. This functionality additionally safeguards users from accidentally engaging with harmful links. This technology provides real-time detection and protection against novel threats and scams, including fraud links shared through various channels, such as text, email, search results, and social media.
North America is Projected to Hold the Largest Share of the Fraud Detection and Prevention Market
The presence of key market players, such as International Business Machines (IBM) Corporation, F5, Inc., and Oracle Corporation that are adopting various strategies to provide security against fraud, is driving the growth of the market. For instance, in April 2022, IBM introduced a chip integrated with AI to provide financial institutions, including banks and credit card companies, with the capacity to undertake fraud analysis on 100% of their transactions in real time.
In addition, the growing R&D activities in the region for providing security against fraud and illegal threats such as money laundering, phishing attacks, malware, and others boost the market growth. For instance, in July 2022, Nano Pay Mexico implemented its Smart Vista anti-fraud solution to safeguard credit card transactions in partnership with BPC Banking Technologies, the international payments solution provider. The application of BPC’s technology for fraud prevention allows Nano Pay Mexico to secure its credit card service, benefitting from vigilant monitoring, fraud detection, and enhanced customer satisfaction.
Europe Witnessed Substantial Growth in the Global Fraud Detection and Prevention Market
The rising fraudulent activities and cyber-attacks in industries, which can cause a severe loss of customer trust, brand loyalty, shareholder trust, and overall reputation of an industry, further increase demand for fraud detection and prevention solutions in the region. According to the Cyber Security Breaches Survey report, there has been a significant surge in cyber-attacks during the pandemic. In 2022, approximately 39% of businesses in the U.K. encountered cyber-attacks, which increased the demand for solutions and services related to fraud detection and prevention.
Moreover, rising initiatives by a local company that provides online payment solutions, particularly focused on helping businesses and organizations collect recurring payments from their customers or clients, are driving the growth of the market. For instance, in September 2022, GoCardless introduced Verified Mandates in France as part of its worldwide 'bank payment' platform. Verified Mandates seamlessly integrates the Account Information Services (AIS) features of open banking with bank debit, serving as a proactive measure to prevent fraudulent activities. This innovative solution represents a fresh perspective on addressing the longstanding challenge of payment fraud, whether it originates from identity theft or individuals deliberately attempting to obtain goods or services from merchants without fulfilling payment obligations.
In addition, government initiatives to strengthen IT network security directly impact the growth of the fraud detection and prevention market in the region. For instance, in April 2021, Finland established a national organization to appraise domestic communications network security concerns and evaluate vulnerabilities to attacks from the cyber domain. The Network Security Advisory Board (NSAB) engaged with state agencies, corporations, and municipalities as a national resource for those that require external expertise to improve network security and bolster defenses against cyber threats.
Competitive Landscape
Various market players operating in the fraud detection and prevention industry include IBM Corporation, Thales Group, Oracle Corporation, SAP SE, BAE Systems, F5, Inc., SAS Institute, Inc., NICE Actimize, Ltd., Fair Isaac Corporation (FICO), ACI Worldwide, Inc., and Others. These market players are adopting several strategies, such as product launches and partnerships across various regions, to maintain their dominance in the fraud detection and prevention market.
For instance, in April 2023, ACI Worldwide announced the launch of its real-time payments fraud protection services FedNow in the U.S. The new services are designed to help financial institutions protect themselves against fraud in real-time payments.
For instance, in April 2023, IBM launched the IBM Security QRadar Suite, which provides cutting-edge tools to counter ever-evolving security challenges and elevate cybersecurity strategies. It integrates essential components, including threat detection, investigation, and response technologies, underscoring IBM's substantial commitment to pioneering solutions.
In addition, in March 2023, F5, Inc. partnered with Visa, a global payments technology company, to empower merchants to create a secure, personalized, and seamless online experience for their customers. This aims to enhance the beginning of the customer's online journey, providing them with a frictionless shopping experience while ensuring the security of their transactions. This partnership simplifies authorizations and reduces credit card fraud by implementing F5's cybersecurity solutions and Visa's payment expertise.
Fraud Detection And Prevention Key Segments
By Offering
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Solutions
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Fraud Analytics
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Authentication
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Governance, Risk & Compliance
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Services
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Professional
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Managed
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By Deployment Type
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Cloud
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On-Premises
By Enterprise Type
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Small & Medium-Sized Enterprises
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Large Enterprises
By Application
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Money Laundering
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Credit & Debit Card Fraud
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Mobile Fraud
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Identity Fraud
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Others
By End User
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BFSI
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Government & Defense
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Healthcare
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IT & Telecom
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Retail & E-Commerce
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Others
By Region
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North America
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The U.S.
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Canada
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Mexico
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Europe
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The U.K.
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Germany
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France
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Italy
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Spain
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Denmark
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Netherlands
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Finland
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Sweden
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Norway
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Russia
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Rest of Europe
-
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Asia-Pacific
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China
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Japan
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India
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South Korea
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Australia
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Indonesia
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Singapore
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Vietnam
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Thailand
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Rest of Asia-Pacific
-
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Rest of the World (RoW)
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Latin America
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Middle East
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Africa
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REPORT SCOPE AND SEGMENTATION:
|
Parameters |
Details |
|
Market Size in 2023 |
USD 37.97 Billion |
|
Revenue Forecast in 2030 |
USD 117.01 Billion |
|
Analysis Period |
2023–2030 |
|
Base Year Considered |
2023 |
|
Forecast Period |
2024–2030 |
|
Market Size Estimation |
Billion (USD) |
|
Growth Factors |
Increasing government initiatives to combat fraudulent activities Rising frequency of cyber-attacks and fraudulent activities |
|
Countries Covered |
26 |
|
Companies Profiled |
10 |
|
Market Share |
Available for 10 companies |
|
Customization Scope |
Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope. |
|
Pricing and Purchase Options |
Avail customized purchase options to meet your exact research needs. |
Key Players:
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IBM Corporation
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Thales Group
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Oracle Corporation
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SAP SE
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BAE Systems
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F5, Inc.
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SAS Institute, Inc.
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NICE Actimize, Ltd.
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Fair Isaac Corporation (FICO)
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ACI Worldwide, Inc
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