Report Details:
15 Companies Covered
212 Pages
Fraud Detection and Prevention Market Overview
The fraud detection and prevention market was valued at USD 24.91 billion in 2024 and is projected to expand to USD 179.43 billion by 2035, reflecting a CAGR of 19.66% through 2035.
Growth is driven by rising revenue losses due to fraud, the proliferation of cyberattacks, rapid adoption of mobile banking and online applications, and advances in cloud technologies that enable scalable, real-time analytics.
The increasing sophistication of fraud schemes has prompted financial institutions and enterprises to prioritize AI, machine learning, and device-level intelligence to protect transactions, reduce false positives, and comply with tightening regulatory expectations.
Segment Insights
The market segmentation provided includes solution, services, application, and organization size.
Solutions: The market comprises Fraud Detection, Authentication, and Data Synthesis. According to the dataset, authentication solutions led the market in 2022, reflecting growing deployment of single-factor, multi-factor, and biometric systems to counter identity-centric attacks.
Fraud analytics (noted in the report as the fastest-growing solution category) is expected to gain traction over the projection period as organizations adopt predictive modelling and behavioral analytics to detect evolving attack patterns.
Data synthesis and integration capabilities are increasingly critical to unify disparate signals for more accurate decision-making. Qualitatively, authentication provides immediate risk reduction at access points, while analytics-driven fraud detection addresses complex, multi-vector threats.
Services: The services segment comprises Professional Services and Managed Services. Professional services held a major revenue share in 2022, driven by demand for specialist consulting, systems integration, and on-site implementation to tailor complex fraud platforms.
Managed services are forecast to record the fastest CAGR, as enterprises, particularly those lacking large security teams, shift to outsourced real-time monitoring, anomaly detection, and continuous tuning of models.
Managed offerings deliver cost predictability and 24/7 threat monitoring, while professional services enable customization and compliance alignment.
Applications: The application segmentation covers Insurance Claims, Money Laundering, and Electronic Payment. The dataset reports money laundering dominated in 2022, reflecting sustained regulatory focus and the use of FDP systems for AML compliance.
Electronic payment solutions are anticipated to grow fastest, driven by mobile wallet adoption, e-commerce volume, and an uptick in digital payments that expand the attack surface.
Insurance claims and related fraud detection remain significant due to persistent abuse and high claims volumes. Qualitatively, AML solutions prioritize transaction pattern detection and customer due diligence, whereas electronic payment controls emphasize real-time scoring and device risk analysis.
Organization Size: Segments include SME and Large Enterprises. Large enterprises accounted for the major revenue share in 2022, given their high transaction volumes and cross-border exposure.
SMEs are expected to deliver the fastest CAGR, owing to increasing digital adoption among smaller firms and the availability of affordable cloud and API-based FDP solutions. SMEs face mounting fraud risk but often lack in-house expertise, accelerating demand for managed and cloud offerings.
Regional Insights
By region, North America led the market, supported by elevated instances of payment fraud, identity theft, and mature regulatory frameworks. The new account bank fraud in the US rose from roughly 51,000 in 2020 to nearly 84,000 in 2021, underscoring heightened exposure.
Asia-Pacific was the second-largest region and shows rapid digital acceleration, with China holding the largest share and India the fastest-growing market. Europe is expanding due to AML priorities and insurance-fraud controls, with Germany holding a large share and the UK showing rapid growth.
Key Players
Key companies identified in the dataset include PayPal Holdings Inc., F5 Networks Inc., Experian PLC, iovation Inc., IBM Corporation, Fiserv, NICE Actimize, BAE Systems, TransUnion, Socure, and others.
These players are investing in AI, device fingerprinting, behavioral biometrics, and cloud suites, while expanding through partnerships, product launches, and acquisitions.
Industry Developments
Notable developments include Mastercard’s Q2 2024 launch of an AI-powered Consumer Fraud Risk solution, Visa’s Q2 2024 acquisition of Israeli startup Baffle, Socure’s $95M Series F (Q2 2024), Experian’s FraudNet 2.0 (Q1 2024), Barclays–BioCatch partnership (Q3 2024), FICO’s cloud-native suite (Q2 2024), NICE Actimize’s acquisitions and X-Sight AI launch (Q1–Q2 2024), TransUnion’s TruValidate Device Risk (Q2 2024), and Onfido’s $50M funding (Q2 2024). These moves emphasize AI, device risk, behavioral analytics, and cloud deployment.
Key Findings
- Market Size (2024): USD 24.91 billion; Projected (2035): USD 179.43 billion; CAGR 19.66% (2025–2035).
- Solutions: Authentication led in 2022; fraud analytics expected to grow fastest.
- Services: Professional services held the major 2022 share; managed services grew fastest.
- Applications: Money laundering dominated in 2022; electronic payment registered the fastest growth.
- Organization Size: Large enterprises held the largest share in 2022; SMEs are expected to record the highest CAGR.
- Regional: North America leads with notable fraud incidence increases; APAC shows rapid digital adoption, with China being the largest and India the fastest-growing.
- Trends: AI, cloud deployment, device fingerprinting, and behavioral analytics are core enablers; managed services and AML remain high-priority areas.
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