Certified Global Research Member
Isomar fd.webp Wcrc 57.webp
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
Why Choose Market Research Future?
  • Vigorous research methodologies for specific market.
  • Knowledge partners across the globe
  • Large network of partner consultants.
  • Ever-increasing/ Escalating data base with quarterly monitoring of various markets
  • Trusted by fortune 500 companies/startups/ universities/organizations
  • Large database of 5000+ markets reports.
  • Effective and prompt pre- and post-sales support.

Fraud Detection Prevention Market Size

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

One of the key factors affecting the fraud detection and prevention sector is the rise in complex and sophisticated fraud schemes. Advancements in fraudulent practices are also driven by innovation. They are constantly looking for new and more efficient ways to take advantage of holes in cycles and frameworks. Fraudulent activity has surged as a result in several sectors, including banking, insurance, the internet, and healthcare.

Because of this, companies are seeing that to safeguard their resources and uphold client faith, they want effective fraud detection and prevention systems. The growing embrace of innovative solutions and the expansion of online commerce have both contributed to the growth of the fraud detection and prevention industry. The more transactions that are conducted online, the higher the danger of fraud. Organisations are mindful of the potential harm that fraudulent exercises might do to their finances and image. They are thus making investments in cutting-edge systems for combating and identifying fraud, which have the capacity to continuously analyze enormous volumes of data to spot suspicious activity and thwart fraud before it begins. Furthermore, a significant component of the market is the increasing recognition among businesses of the necessity of proactive fraud prevention.

Instead of depending just on reactive measures, like looking into fraud after it happened previously, associations are instead concentrating on stopping theft from occurring in the first place. Interest in innovations in identifying fraud and prevention, such as artificial intelligence computations, AI reasoning, and predictive analysis, has surged because of this perspective change. Other issues influencing the fraud detection and prevention business are the cost of implementing these plans, the availability of qualified personnel, and the integration of these technologies with existing frameworks. Associations need to consider these considerations while assessing and choosing the best fraud detection and prevention solutions.

Covered Aspects:

Report Attribute/Metric Details
Market Size Value In 2022 USD 16.6 Billion
Market Size Value In 2023 USD 20.3 Billion
Growth Rate 22.71% (2023-2032)

Fraud Detection and Prevention Market Overview

The Fraud Detection and Prevention market size is projected to grow from USD 24.91013 billion in 2024 to USD 104.7 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 19.66% during the forecast period (2024 - 2032). Additionally, the market size for Fraud Detection and Prevention was valued at USD 20.3 billion in 2023.

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 Overview1

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.



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

  • iovation Inc. (US)

  • IBM Corporation (US)

  • CardinalCommerce Corporation (US)

  • Oracle Corporation (US)

  • Experian PLC (Ireland)

  • PayPal Holdings Inc. (US)

  • Distil Networks Inc. (US)

  • LexisNexis Risk Solutions Company (US)

  • Accertify Inc. (US)

  • F5 Networks Inc. (US)

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

Leading companies partner with us for data-driven Insights
client_1 client_2 client_3 client_4 client_5 client_6 client_7 client_8 client_9 client_10
Kindly complete the form below to receive a free sample of this Report
Please fill in Business Email for Quick Response

We do not share your information with anyone. However, we may send you emails based on your report interest from time to time. You may contact us at any time to opt-out.

Purchase Option
Single User $ 4,950
Multiuser License $ 5,950
Enterprise User $ 7,250
Compare Licenses
Tailored for You
  • Dedicated Research on any specifics segment or region.
  • Focused Research on specific players in the market.
  • Custom Report based only on your requirements.
  • Flexibility to add or subtract any chapter in the study.
  • Historic data from 2014 and forecasts outlook till 2040.
  • Flexibility of providing data/insights in formats (PDF, PPT, Excel).
  • Provide cross segmentation in applicable scenario/markets.