ID: MRFR/ICT/2199-CR | February 2020 | Region: Global | 212 pages
Market Research Future (MRFR) predicts the Global Fraud Detection and Prevention Market size to hit USD 139,853.2 Million at 25.2% CAGR from 2019 to 2026 (forecast period). The growing need to mitigate fraud losses and to maintain revenue from genuine transactions is propelling the expansion of the fraud detection and prevention industry. The advent of advanced technologies like big data, data analytics, predictive modeling, deep learning, cloud computing, machine language, and AI are boosting the market growth. Moreover, the rising number of online and mobile banking services, combined with the increasing number of real-time transactions, is bolstering the market growth. Financial and government institutions are gradually adopting FDP solutions to mitigate both external and internal fraud, adding to the regional and global economy.
In this situation of COVID-19, the national lockdown of every country has expanded the market span of digital technologies. More than 60 – 70% of people are now using one or more digital platforms for a variety of reasons, such as WFH, online transactions using digital applications from their banks, or mobile/digital wallets. This has made it possible for people to survive on a daily basis; however, it has opened an easy-to-go door for fraud criminals and money launderers as they can now access sensitive information from digital channels by hacking them. The worst-affected health sector is fighting a number of battles, as the desperation of hospitals and healthcare agencies to restart the IT processes under attack and avoid adverse effects on treatment due to stalled systems makes them lucrative targets for cybercriminals. Despite serious attacks and overwhelmed business operations, many healthcare organizations did not withdraw their Request for Proposals (RFPs), and the Request for Quotes (RFQs) floated prior to this crisis time. These developments indicate to the world that the healthcare industry is determined and confident to overcome the current crisis and advance towards its futuristic objectives.
Adoption of digitalization and IoT increased the adoption rate of fraud detection and prevention system
The world is experiencing a digital revolution. These days, Internet users are not only limited to online search and social networking but have moved on to practices such as online banking and shopping. With lockdown restrictions during COVID-19, people stopped moving from home, and a large population registered online transactions. This has contributed to a sudden rise in fake websites. Apart from banking, there is also a spike in fake websites that imitate shops and home delivery services, which traps people to make online purchases. With the increased use of IoT and new IoT inbuild devices in the market, it is becoming a vital part of consumer lifestyle and industrial operations. The Global System of Mobile Communication (GSMA) estimated that the number of IoT connections would rise to 23 billion by the end of 2020. Connected devices offer convenience as one of the factors that give criminals the ability to get inside the systems. Connected devices collect, transmit, and store a range of consumer data that poses privacy risks. Two big IoT frauds that are widespread and considered serious in the IoT world are Ad and ATM frauds. Increasing cyber-criminal fraud targeting people with fake debit and credit card activations, online bookings, free coronavirus tests, and job offers have contributed to the adoption of fraud detection and prevention systems.
Rise in the use of AI and ML in the banking sector to boost FDP market
The banking and financial services industry is in the early stages of adopting technology to avoid risks. Financial institutions face a lot of vulnerability due to massive online data transactions. According to Facebook and BCG, the rate of online banking adoption in India is projected to double to 150 million by 2020, which may raise the chances of fraud. As digital banking processes increase, it has become more critical for financial institutions to secure transactions from fraud. Nowadays, financial institutions focus not only on financial risk reduction but also on the detection of fraud – in real-time. The methods for detecting fraud are changing with the advent of pattern recognition. The use of machine learning technologies has given a big boost to artificial intelligence to defend any system, as ML can protect companies from insider fraud and can also detect any irregularities in individuals who might have leaked data. The growth in demand for AI and ML has resulted in an increase in the adoption of FDP solutions.
Unavailability of qualified security professionals
One of the most significant problems facing companies today is the lack of skilled professionals capable of dealing with fraudulent activities. Organizations recruiting security experts lack the right expertise to analyze and identify advanced fraud during cyber-attacks. As per the Peninsula News analysis of the Bureau of Labor Statistics data, by 2021, the US will face a shortage of 500,000 or more cyber security talents. The National Association of Software and Service Companies (NASSCOM) also reported that there would be a need for 1 million cybersecurity professionals by 2020. The Non-Profit Professional Association for Cyber Security (ISC) surveyed 3,237 professionals, 51% of whom indicated that their businesses face extreme risks due to a lack of cybersecurity professionals.
Global Fraud Detection and Prevention Industry has been segmented into solution, service, application, organization size, and vertical.
By solution, the global market has been segmented into fraud detection, authentication, and data synthesis.
By services, the global market has been divided into professional service and managed service.
By application, the global market has been segregated into insurance claims, money laundering, electronic payment, and others.
By organization size, the global market has been divided into small & medium enterprises and large enterprises.
By verticals, the global market has been divided into BFSI, retail, telecommunication, government, travel & transportation, healthcare, real estate, energy & power, manufacturing, media & entertainment, and others.
Geographically, the global fraud detection and prevention industry has been categorized as North America, Europe, Asia Pacific, the Middle East and Africa, and South America.
North America to lead the global market
North America is set to dominate the fraud detection and prevention market during the review period and expand at a significant CAGR from 2019 to 2026. The region has been the first to adopt digital technologies, including AI, IoT, and machine learning for fraud detection, and is continually investing in solutions that minimize rising revenue losses due to fraudulent attacks on organizations. In addition, the large presence of global market players, system integrators, distributors, and resellers in the region further contributes to North America's market share.
The market studied is made up of many global and regional players competing for attention in a fairly-contested market space. Although the market presents high barriers to entry for new players, many new entrants have been able to gain traction in the market.
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The fraud detection and prevention market analysis is a systematic and in-depth study of the fraud detection and prevention industry with an emphasis on global market trends. The report aims to provide an overview of the global FDP market with comprehensive market segmentation by deployment, solution, service, end-user, and geography. Fraud detection and prevention market is likely to see substantial growth during the forecast period. The report provides key information on the market position of the leading market players and provides key market trends and opportunities.
Frequently Asked Questions (FAQ) :
The global FDP market projected to grow at a 25.2% CAGR over the forecast period.
The global FDP market is set to garner USD 139,853.2 million by 2027.
North America to hold the most significant share in the global FDP market.