The global fraud detection and prevention market size was valued at USD 25.67 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 17.6% from 2023 to 2030. Some of the major factors driving the growth of the market include increased sophistication of cyberattacks, increased online fraud, and a growing preference for advanced analytics for the identification of threat patterns, among others. Online fraud risks have been increasing in line with the rising popularity of B2C, B2B, and C2C e-commerce transactions, which often involve a mutual exchange of critical information, identity information, and personal data of individuals and enterprises.
Furthermore, the boom in mobile gaming and the growing use of social media also adds to the risks of subsequent fraud. While frauds are getting more sophisticated, the losses from these attacks are also increasing. An analysis of over 44 billion events across 800 million active users globally by Help Net Security revealed a rapid increase in the complexity of emerging attacks. This has triggered the need for a strong emphasis on contextual detection strategies capable of proactively thwarting intrusions before any potential losses.
Financial services remain the most vulnerable to online fraud, such as account takeovers, carried out using a complex combination of manual and bot-powered methods. Cases of social media fraud are also increasingly detected in the form of fake registrations and fake installs, which are difficult to track due to the large volumes involved. The looming glitches in detecting and preventing fraud often lead to reputational and financial losses, such as eroded trust, increased operational costs, and revenue and asset losses for individuals and enterprises. The rising complexity and the increasing number of frauds have triggered the demand for advanced fraud detection and prevention solutions that can potentially render a detailed understanding of user behavior patterns. At the same time, a 360-degree view of data can also prove effective in confronting online fraud at a time when internet services and digital data are increasing.
Fraudsters often keep changing their intrusion methods by using a combination of new and conventional methods to escape any detection traps. They also make sure to avoid repeating the processes of intrusion. Hence, advanced fraud detection solutions should be capable of monitoring the data in real time and analyzing the historical data to identify the pattern of attacks. DataVisor’s Unsupervised Machine Learning (UML) Engine is one such solution that can potentially identify the correlated group of malicious users sharing similar attributes. The traditional approach of fraud detection typically includes rule-based and supervised machine learning that constantly updates the model and is found to be less effective in detecting various sophisticated fraudulent attacks. Hence, updated fraud detection and prevention solutions based on the latest technologies are being aggressively adopted to arrest financial and reputational losses for individuals and enterprises.
Fraud detection and prevention rely, to a large extent, on the ability to identify threat patterns and develop suitable solutions capable of protecting enterprises from recurring attacks. Although business intelligence (BI) tools have been used conventionally to summarize the large volumes of data churned every quarter in any particular business, these conventional analytics methods cannot provide in-depth insights on a granular level to predict possible outcomes. Hence, advanced analytics tools, such as predictive analytics, data mining, big data analytics, and machine learning, are increasingly preferred to examine large volumes of data and extract patterns showcasing various trends across various industries on regional and global levels. These tools are based on a mathematical approach to interpreting data and machine learning techniques, such as deep learning, to identify patterns, form correlations, and group the data sets. Arranging the historical data in an identifiable pattern allows enterprises to counter foreseeable threats by triggering required actions leveraging fraud detection and prevention solutions.
The solution segment is estimated to occupy the largest share of the market, over 63% in the year 2022, and is expected to continue its dominance over the forecast period. The growing incidences of Account Take Overs (ATO) and phishing emails have compelled enterprises to adopt advanced tools and solutions to detect anomaly patterns of fraud at a preliminary stage. These solutions process large data sets in real-time and reduce the detection time. In addition, these solutions also help enterprises in meeting compliance requirements.
The services segment is estimated to register the fastest CAGR of around 19% over the forecast period. Organizations in developing economies are increasingly implementing robust fraud prevention strategies. Organizations require integration, consulting, training, and support services from fraud prevention service providers to implement a robust framework. The need for such professional consulting and other third-party services to detect fraud in real-time is expected to drive the segment growth over the forecast period.
The authentication solutions segment dominated the market in 2022 and accounted for more than 40% of the overall revenue share in 2022. Over the years, enterprises have relied on authentication solutions to secure customer credentials and customer-sensitive information. However, the increasing sophistication of fraud attempts in customer-facing applications has compelled organizations to opt for advanced authentication solutions with single-factor & multi-factor, and voice biometrics capabilities. Furthermore, securing critical information shared within the enterprises using cloud technologies in every industry vertical to avoid data breaches is important. Thus, the need to secure credentials and offer safe access to specific users within the organizations is expected to augment the segment growth over the forecast period.
The fraud analytics solutions segment is anticipated to register the fastest CAGR of over 18% over the forecast period. Digital technologies are on the rise, and data assimilation from these technologies transforms the business environment, creating new business growth opportunities. As organizations store large volumes of data, analytical solutions help examine fraud and anomaly behaviors. Applications of such predictive and preventive analytical tools help enterprises take essential remediation measures. These potential benefits offered by the solutions are expected to drive the segment growth over the forecast period.
The professional services segment held the largest revenue share of nearly 70% in 2022 and is expected to retain the leading position throughout the forecast period. The professional services comprise consulting, support, and training & development services. Vendors offering these services assign a dedicated team of experts to help organizations deploy technologies and train professionals. Training and support programs is one of the necessary element offered as a part of the professional services, as it helps professionals to mitigate security gaps and implement fraud detection procedures.
However, the managed services segment is anticipated to grow at the fastest CAGR of over 20% over the forecast period. Organizations keen on taking preventive measures to curb fraud in real-time adopt managed services. Managed service providers monitor business transactions and my unusual user behavior in real-time across big data generated across all touchpoints. Reviewing and mining such data in real-time is a proactive approach to detecting fraud. Furthermore, outsourcing such risk-based security frameworks to managed service vendors allows businesses to focus on other value-added activities. These factors are anticipated to increase the demand for managed services across all industry verticals over the forecast period.
The payment fraud application accounted for the maximum revenue share of above 52% in 2022 and is expected to grow at a steady CAGR over the forecast period. The growing demand for cashless payment modes and e-wallets among consumers has created avenues for fraudsters. Vulnerabilities or loopholes in these applications can provide easy access to banking and financial reserves. Thus, detecting such frauds in real-time and the need to patch all the vulnerabilities within the applications is contributing to the segment growth.
The identity theft segment is anticipated to register the fastest CAGR of over 19% over the forecast period. Identity theft practices are increasing as criminals adapt to the foiling authentication process. The Federal Trade Commission’s investigative tool, “The Consumer Sentinel Network,” tracked 4.8 million fraud and identity theft reports in 2020, representing a growth of around 45% from the previous year. Thus, the need to curb growing identity theft activities is expected to drive segment growth.
The large enterprise segment accounted for the largest revenue share of more than 70% in 2022. Fraudulent activities ranging from phishing and money laundering to distributed denial-of-service are prevalent among large enterprises, and such attacks could negatively impact business profit. Thus, large enterprises must adopt preventive solutions and services. Investments focused on deploying preventive measures are critical business strategies to ensure organizational data security. However, the SME segment is estimated to record the fastest CAGR over the forecast period.
The SMEs segment is projected to witness the highest growth rate of over 19% over the period 2023 to 2030, the segment growth is attributable to the increasing fraud cases in these organizations. The growing dependency on digital solutions and the lack of efficient security frameworks among SMEs result in cyber-attacks. Furthermore, limited awareness of fraud and its impact on business profits challenges SMEs in managing data protection compliance standards. In addition, growing cross-border trade contributes to increased fraudulent activities. Thus, a need for solutions that could assess, identify, mitigate, and report frauds among SMEs is estimated to drive the segment growth over the coming years.
The BFSI segment had the highest revenue share of more than 28% in 2022. Rapid digitization and electronification of operations have made the incumbents of the banking and financial services industry a popular target among cybercriminals. Furthermore, the growing popularity of products, such as stockbroking, insurance, and mutual funds, among consumers to digitally access these solutions across several touchpoints compels enterprises to adopt preventive tools to track fraud and their activities. In addition, growth in identity theft and card fraud cases across the globe is promoting the adoption of authentication solutions in this segment.
The retail & e-commerce vertical segment is anticipated to register the fastest CAGR of more than 19% over the forecast period. Incumbents in the retail & e-commerce industry rely on electronic devices and digital platforms to improve customer experience. However, adopting such solutions increases the risks of payment and digital fraud. Therefore, to protect customer information and strengthen security infrastructure, the demand for authentication and other fraud prevention solutions will grow in this segment over the forecast period.
North America occupied more than 40% of the fraud detection and prevention industry in 2022. The growth of this region can be attributed to the presence of some of the top players in the market, who are based in North America. Some significant companies based in North America include IBM, Microsoft, and Oracle. Moreover, the region is home to the world's largest economy, the U.S., which demands high usage of fraud detection and prevention for various activities such as IT, manufacturing, and healthcare. Thus, the abovementioned factors are expected to drive the market's growth over the forecast period. Asia Pacific region is projected to witness the highest growth rate of more than 16% from 2023-2030.
Asia Pacific is home to some of the largest economies in the world, such as China, India, Japan, and South Korea, and some of these counties is a manufacturing hub. The region is also home to some significant companies in the market, including Fujitsu and NEC Corporation. The continued digitalization in developing economies and the large number of internet users in countries such as China and India have also played a role in developing the fraud detection and prevention market in the region.
The key players operating in the market include BAE Systems, Dell Inc., Equifax, Inc., and Fiserv, Inc. To widen their product offering, companies employ a variety of inorganic growth tactics, such as mergers, partnerships, and acquisitions. For instance, in February 2020, Dell Inc. entered into a definitive agreement with a consortium to sell RSA Security in an all-cash transaction. The transaction included the purchase of the RSA NetWitness Platform, RSA Archer, RSA Fraud and Risk Intelligence, RSA Conference, and RSA SecurID and is anticipated to close in the next six to nine months. Some of the prominent players in the global fraud detection and prevention market include:
ACI Worldwide, Inc.
SAS Institute Inc.
SEON Technologies Ltd.
Market size value in 2023
USD 28.98 billion
Revenue forecast in 2030
USD 90.07 billion
CAGR of 17.6% from 2023 to 2030
Base year for estimation
2018 - 2021
2023 - 2030
Revenue in USD billion, and CAGR from 2023 to 2030
Revenue forecast, company market share, competitive landscape, growth factors, and trends
Component, solution, service, application, organization size, vertical, region
North America; Europe; Asia Pacific; Latin America; Middle East & Africa
U.S.; Canada; Germany; UK; France; Italy; Spain; China; India; Japan; South Korea; Australia; Brazil; Mexico; Argentina; U.A.E.; Saudi Arabia; South Africa
Key companies profiled
ACI Worldwide, Inc.; AltexSoft; BAE Systems; Dell Inc.; Equifax, Inc.; Experian plc; Fiserv, Inc.; IBM; NICE Ltd.; Oracle; SAP SE; SAS Institute Inc.; SEON Technologies Ltd.; Signifyd; Software AG
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This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global fraud detection and prevention market report based on component, solution, service, application, organization size, vertical, and region.
Component Outlook (Revenue, USD Billion, 2018 - 2030)
Solution Outlook (Revenue, USD Billion, 2018 - 2030)
Governance, Risk and Compliance (GRC)
Service Outlook (Revenue, USD Billion, 2018 - 2030)
Application Outlook (Revenue, USD Billion, 2018 - 2030)
Organization Size Outlook (Revenue, USD Billion, 2018 - 2030)
Vertical Outlook (Revenue, USD Billion, 2018 - 2030)
Government & Defense
IT & Telecom
Industrial & Manufacturing
Retail & E-commerce
Regional Outlook (Revenue, USD Billion, 2018 - 2030)
Middle East & Africa
b. The global fraud detection & prevention market size was estimated at USD 25.67 billion in 2022 and is expected to reach USD 28.98 billion in 2023.
b. The global fraud detection & prevention market is expected to grow at a compound annual growth rate of 17.6% from 2023 to 2030 to reach USD 90.07 billion by 2028.
b. The solutions segment dominated the global fraud detection & prevention market held the largest revenue share of more than 63% in 2022.
b. The authentication solutions segment dominated the global fraud detection & prevention market in 2022 and accounted for more than 42% of the overall revenue share.
b. The professional services segment led the global fraud detection & prevention market and held the largest revenue share of around 70% in 2022.
b. Some key players operating in the fraud detection & prevention market include Total System Services, Inc; Software AG; SAS Institute Inc.; SAP SE; Oracle; IBM; Fiserv, Inc.; Experian plc; Equifax, Inc.; BAE Systems; and ACI Worldwide, Inc.
b. Key factors that are driving the fraud detection & prevention market growth include growing concern across industries to curb threats and financial losses stemming from cyber scams such as Distributed Denial-Of-Service (DDoS), ransomware, and malware.
b. The payment fraud application dominated the global fraud detection & prevention market and accounted for the maximum revenue share of around 53% in 2022.
b. The BFSI segment led the global fraud detection & prevention market and accounted for the highest revenue share of around 30% in 2022.
b. North America dominated the fraud detection & prevention market with a share of approx. 36% in 2022. This is attributable to the growing investments by enterprises in advanced fraud prevention solutions to comply with stringent government regulations, such as PCI DSS standards.
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