Fraud Detection and Prevention Market Research Report - Global Forecast till 2030

Fraud Detection and Prevention Market Research Report Information By Solution (Fraud Detection, Authentication, Data Synthesis), By Service (Professional Service, Managed Service), By Application (Insurance Claims, Money Laundering, Electronic Payment), By Organization Size (SME, Large Enterprises), and By Region (Europe, North America, Asia-Pacific, and Rest Of The World) –Market Forecast Till 2032

ID: MRFR/ICT/2199-CR | 212 Pages | Author: Shubham Munde | April 2023         

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Global Fraud Detection and Prevention Market Overview


Globally Fraud Detection and Prevention Market Size was prized at USD 142.1 billion in 2022. The fraud detection and prevention market industry is projected to grow from USD 165.2 Billion in 2023 to USD 407.9 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 16.26% during the forecast period (2023 - 2032). The increasing amount of revenue lost to fraud is the major market driver enhancing market growth. The fraud detection and prevention market will also grow due to other important factors like the development of cloud technologies, the rise of online applications, and the expansion of mobile banking services.


Fraud Detection and Prevention Market Overview


Source: Primary Research, Secondary Research, MRFR Database and Analyst Review


Fraud Detection and Prevention Market Trends



  • Increasing Cases of cyberattacks are driving the market growth


Market CAGR for fraud detection and prevention is driven by the rising number of cyberattacks. A rise in the frequency of cyberattacks and scams drives the expansion of the fraud detection and prevention market. According to the International Criminal Police Organization's assessment of COVID-19's effects on cybercrime, there has been a significant change in the types of targets from individuals and small enterprises to large organizations. For example, according to Interpol, in 2020, when businesses and firms instantly installed remote systems and networks to enable workers to work from home, criminals took advantage of increased security weaknesses to steal data, make money, and cause trouble. Between January and April of this year, INTERPOL discovered 907,000 spam communications, 737 malware-related occurrences, and about 48,000 bad Websites. As a result, the market for fraud detection and prevention is expanding due to the rise in cyberattacks and fraud.


A major development in fraud detection and prevention is cloud technology. It provides ample processing power, storage capacity, and internet access. Moreover, cloud technology enables quick cybercrime tracking. Small and medium-sized banking and financial institutions businesses are also actively implementing cloud-based fraud detection and prevention services throughout their respective organizations. For instance, Salesforce.com Inc. and ACI Worldwide, Inc. The partnership aims to combine Salesforce's cloud-based commerce platform with the business's real-time fraud detection infrastructure. The connection provides capabilities like machine learning, predictive analytics, customer profiling methods, and others. Thus, driving the fraud detection and prevention market revenue.


Fraud Detection and Prevention Market Segment Insights


Fraud Detection and Prevention Solution Insights


The Fraud Detection and Prevention Market segmentation, based on solution, includes fraud detection, authentication, and data synthesis. In 2022, the segment for authentication solutions led the market. Due to the growing sophistication of fraud attempts in customer-facing apps, enterprises have been forced to use advanced authentication systems with features like single-factor & multi-factor and voice biometrics. Over the projected period, the fraud analytics solutions category is anticipated to grow the fastest. Data assimilation from emerging digital technology affects the corporate landscape and opens up new avenues for business expansion.


Figure 1: Fraud Detection and Prevention Market, by Solution, 2022 & 2032 (USD billion)


Fraud Detection and Prevention Market, by Solution, 2022 & 2032


Source: Primary Research, Secondary Research, MRFR Database and Analyst Review


Fraud Detection and Prevention Services Insights


The Fraud Detection and Prevention Market segmentation, based on services, includes professional services and managed services. The professional services sector held a major revenue share in 2022 and is anticipated to hold the top spot throughout the projected period. Companies providing these services allocate a specialized team of professionals to assist organizations in implementing technologies and hiring personnel. However, the managed services segment is predicted to develop at the quickest CAGR throughout the projected period. Managed service providers analyze abnormal user behavior and track company transactions in real-time using big data collected from all touchpoints.


Fraud Detection and Prevention Application Insights


The Fraud Detection and Prevention Market segmentation, based on application, includes insurance claims, money laundering, and electronic payment. In 2022, money laundering dominated the market. Compliance specialists also utilize the software to abide by corporate policies and laws, such as the Bank Secrecy Act of the United States, which was created to stop crimes connected to money laundering.


March 2022 BAE Systems Digital Intelligence and the University of Nottingham Malaysia have formed a collaboration to investigate how unsupervised machine learning might be used to find previously unknown danger, referred to as "missing risk," in the context of financial crime. The team will first focus on three use cases: detecting human trafficking, assessing crypto risk, and identifying shell corporations.


Additionally, the electronic payment category is anticipated to account for the fastest market share. The increased use of mobile banking, internet payments, mobile wallet transactions, SMS, and other services is blamed for the segment's growth.


Fraud Detection and Prevention Organization Size Insights


The Fraud Detection and Prevention Market segmentation, based on organization size, includes SMEs and large enterprises. In 2022, the large enterprise segment accounted for the major revenue share. Large businesses are frequently the target of fraudulent operations, including distributed denial-of-service assaults and phishing scams that can result in money laundering. Large businesses must therefore implement preventative services and solutions. Nonetheless, the SME group is anticipated to see the quickest CAGR throughout the forecast period. Cyberattacks are caused by SMEs' increasing reliance on digital solutions and inability to implement effective security procedures.


Fraud Detection and Prevention Regional Insights


By Region, the report provides market insights into Asia-Pacific, Europe, North America, and Rest of the World. The North American fraud detection and prevention area will dominate this market. An increase influenced the regional market's growth in the number of instances involving payment fraud, money laundering, and identity thefts in the United States and Canada. Compared to roughly 51,000 in 2020, almost 84,000 Americans reported new account bank fraud in 2021.


Further, the leading countries studied in the market report are U.S., Canada, German, UK, France, Spain, Italy, China, Japan, India, Australia, South Korea, and Brazil.


Figure 2: FRAUD DETECTION AND PREVENTION MARKET SHARE BY REGION 2022 (%)


FRAUD DETECTION AND PREVENTION MARKET SHARE BY REGION 2022


Source: Primary Research, Secondary Research, MRFR Database and Analyst Review


Asia-Pacific fraud detection and prevention market accounts for the second-largest market share. Due to the digital acceleration, organizations and governments in this region have enhanced their security infrastructure. As part of its security architecture, Asian countries sponsor several awareness efforts centered on fraud prevention and detection. Moreover, China’s fraud detection and prevention market held the largest market share, and the Indian fraud detection and prevention market was the fastest-growing market in the Asia-Pacific region.


Europe's Fraud Detection and Prevention Market is estimated to expand at a major rate from 2023 to 2032. One of the biggest issues in Europe is insurance fraud. In the UK, 89,000 fraudulent claims were found in 2021, 5% lower than the year before and the fewest since 2007. The European Banking Authority (EBA) has designated FDP as the EU's top priority for 2021 due to several money laundering and terrorist financing operations that have grown to be significant dangers in Europe. Further, the German fraud detection and prevention market held the biggest market share, and the UK fraud detection and prevention market was the fastest-growing regional market.


Fraud Detection and Prevention Key Market Players & Competitive Insights


Leading market players are investing heavily in research and development to expand their product lines, which will help the fraud detection and prevention market, grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the fraud detection and prevention industry must offer cost-effective items.


Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global fraud detection and prevention industry to benefit clients and increase the market sector. In recent years, the fraud detection and prevention industry has offered some of the most significant advantages to medicine. Major players in the fraud detection and prevention market, including PayPal Holdings Inc. (US), F5 Networks Inc. (US), Experian PLC (Ireland), iovation Inc. (US), and others, are attempting to increase market demand by investing in research and development operations.


Fiserv, Inc. is an American multinational corporation headquartered in Brookfield, Wisconsin. By offering financial technology services, it serves clients in the financial services industry, such as banks, thrifts, credit unions, securities broker-dealers, mortgages, insurance, leasing and finance companies, and retailers. In March 2022, Fiserv created a new fraud mitigation service that has helped it's small to mid-size credit union and bank clients cut fraud losses, which were already low by industry standards, by 10 to 15%. The average number of false declines—legitimate transactions mistakenly marked as fraudulent—declined by 20%.


Experian is an Irish multinational data analytics and consumer credit reporting firm located in Dublin. Experian gathers and integrates information on over a billion people and companies, including over 25 million US businesses and 235 million US customers. The corporation has offices in 37 countries, including United Kingdom, Brazil, and the United States. In September 2022, Experian announced the release of Experian Fraud Score, a next-generation fraud prevention system that will assist organizations of all sizes in detecting fraud at the application, transaction, and customer lifecycle stages.


Key Companies in the fraud detection and prevention market include



Fraud Detection and Prevention Industry Developments


June 2022 Advanced Fraud Solutions (AFS), a payments fraud detection expert, established a partnership with Fiserv, a payments and financial services technology company. The partnership will enable Fiserv and financial institution clients to test fraud detection, risk-based funds availability, and decision processes, assisting in preventing losses and identifying fraudulent deposits before they are approved.


September 2021 TransUnion, a financial information platform based in the United States, has bought Neustar for an unknown sum. TransUnion's goal to grow beyond credit solutions with supported digital marketing and fraud mitigation capabilities is expected to benefit from the acquisition. Neustar, Inc. is a US-based technology company that delivers real-time information and analytics for the Internet, risk, and digital performance.


Fraud Detection and Prevention Market Segmentation


Fraud Detection and Prevention Solution Outlook



  • Fraud Detection

  • Authentication

  • Data Synthesis


Fraud Detection and Prevention Services Outlook



  • Professional Service

  • Managed Service


Fraud Detection and Prevention Application Outlook



  • Insurance Claims

  • Money Laundering

  • Electronic Payment


Fraud Detection and Prevention Organization Size Channel Outlook



  • SME

  • Large Enterprises


Fraud Detection and Prevention Regional Outlook



  • North America

    • US

    • Canada



  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe



  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Australia

    • Rest of Asia-Pacific



  • Rest of the World

    • Middle East

    • Africa

    • Latin America



Report Scope:

Report Attribute/Metric Details
Market Size 2022 USD 16.6 billion
Market Size 2023 USD 20.3 billion
Market Size 2032 USD 104.7 billion
Compound Annual Growth Rate (CAGR) 22.71% (2023-2032)
Base Year 2022
Market Forecast Period 2023-2032
Historical Data 2019- 2021
Market Forecast Units Value (USD Billion)
Report Coverage Market Competitive Landscape, Revenue Forecast, Growth Factors, and Trends
Segments Covered Solution, Services, Applications, and Organization Size
Geographies Covered Asia Pacific, Europe, North America, and the Rest of the World
Countries Covered U.S., Canada, German, UK, France, Spain, Italy, Japan, China, Australia, India, South Korea, and Brazil
Key Companies Profiled PayPal Holdings Inc. (US), F5 Networks Inc. (US), Experian PLC (Ireland), and iovation Inc. (US).
Key Market Opportunities ·       Increase in the usage of AI and ML in the banking sector to boost the fraud detection and prevention market
Key Market Dynamics ·       The acceptance rate of fraud detection and prevention systems grew due to the introduction of digitalization and IoT.




Frequently Asked Questions (FAQ) :

The global market size of fraud detection and prevention was valued at USD 16.6 Billion in 2022.

The global market is predicted to grow at a CAGR of 22.71% during the forecast period, 2023-2032.

The key players in the market are PayPal Holdings Inc. (US), F5 Networks Inc. (US), Experian PLC (Ireland), and iovation Inc. (US).

The authentication fraud detection and prevention solution dominated the market in 2022.

Key Questions Answered

  • Global Market Outlook
  • In-depth analysis of global and regional trends
  • Analyze and identify the major players in the market, their market share, key developments, etc.
  • To understand the capability of the major players based on products offered, financials, and strategies.
  • Identify disrupting products, companies, and trends.
  • To identify opportunities in the market.
  • Analyze the key challenges in the market.
  • Analyze the regional penetration of players, products, and services in the market.
  • Comparison of major players’ financial performance.
  • Evaluate strategies adopted by major players.
  • Recommendations
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