Fraud Detection Prevention Market

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.

The Global Fraud Detection and Prevention Market Industry is increasingly driven by the surge in cybersecurity threats. As organizations face sophisticated cyber-attacks, the demand for robust fraud detection solutions escalates. In 2024, the market is projected to reach 24.9 USD Billion, reflecting a growing awareness of the need for advanced security measures. Companies are investing in technologies such as machine learning and artificial intelligence to combat fraud effectively. This trend is likely to continue as cybercriminals develop more complex tactics, necessitating ongoing innovation in fraud prevention methodologies.

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

Source: Primary Research, Secondary Research, Market Research Future 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.

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.