Fraud Detection and Prevention Market Size, Share, Industry, Forecast and outlook (2024-2031)

Fraud Detection and Prevention Market Overview

The Global "Fraud Detection and Prevention Market" is expected to grow at a CAGR of 18% during the forecasting period (2023-2030). This is mainly due to the increase in demand for cloud-based security solutions coupled with significant growth in mobile banking to prevent mobile and digital payment fraud.

Any illegal act involving the obtaining of something of value through willful misrepresentation is called fraud. Fraud detection and prevention systems (FDP) are those software applications that are used to provide analytical solutions for detection and prevention of fraud in future. Authentication solutions and fraud analytical solutions form the core of FDP systems. FDP systems analyze data from wide range of data sources for possible inaccuracies.

The report covers all the major trends and drivers playing a vital role in the growth of the global Fraud Detection and Prevention market. The market has been segmented based on region, deployment, component, and industry vertical.

Market Scope

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Market Growth and Trends

Factors such as rising security concerns and an increase in number of cyber-attacks are expected to drive the global fraud detection and prevention market over the forecast period. According to FBI’s Internet Crime Complaint Center (IC3), Internet-enabled theft, fraud, and exploitation remain pervasive and were responsible for a staggering $2.7 billion in financial losses in 2018.

Fraud prevention and detection represent the biggest area for concerns for the financial institutions and are likely to become one the prominent drivers for IT spending.

Market Segmentation Analysis

By deployment, the global Fraud Detection and Prevention market is segmented into cloud and on-premise. In 2018, the On-premise deployment segment accounted for the largest market share in the global market. On-premises deployment widely used in verticals like BFSI and government and defense, mainly to secure sensitive data, financial records, accounting information, and money transfers. On-Premise deployment is a traditional approach to implement fraud detection and prevention solutions across enterprises. The organizations where user credentials are critical for business operations would prefer the on-premises deployment, as it provides them with the flexibility to control their IT systems. However, cloud deployment segment is expected to grow at an exponential rate, mainly due to the rising adoption of cloud-based solutions.

By industry vertical, the global Fraud Detection and Prevention market is segmented into BFSI, Retail and E-Commerce, Telecommunications and ITES, Government and defense, and Others. In 2018, BFSI vertical accounted for the majority share in the market. The BFSI is the most targeted industry vertical, as it deals with large volumes of sensitive and private financial data. The enterprises in BFSI are demanding for security policy management solutions to ensure irreversible security. Moreover, the BFSI vertical is the most regulated, as it has to comply with many security requirements.

Market Geographical Share

By geography, the global Fraud Detection and Prevention market is segmented into North America, Asia-Pacific (APAC), Europe, South America, and the Middle East and Africa (MEA).

In 2018, North America accounted for the largest market share. However, APAC is expected to witness a higher CAGR than other regions during the forecast period. Increasing use of ICT technologies and digitalization of enterprises are transforming traditional IT environment, which in turn is contributing to the growth of the regional market.

APAC Fraud detection and prevention market is expected to grow exponentially over the forecast period due to an increased demand for cloud computing among small and medium-sized enterprises (SMEs). Countries like Singapore, which has seen ICT infrastructure as a key enabler in boosting the overall competitiveness in the region, based on creating new industries and new businesses, thereby encouraging economic growth. Strong vendor presence through technology acquisitions, alliances, and partnerships with system integrators, distributors, and resellers would further contribute to the overall market growth in APAC.

Market Companies

Global Fraud Detection and Prevention Market is moderately fragmented with the presence of global and regional players in the market. Some major players in the market are IBM, FICO, SAS, BAE Systems, DXC Technology, SAP, ACI Worldwide, Fiserv, NICE Systems, Dell Technologies, First Data (US), Guardian Analytics, among others.

These players have adopted various strategies, such as new product/service developments, mergers and acquisitions, collaborations, and partnerships, to expand their presence in the global Fraud Detection and Prevention market. Major players with prominent shares in the market are leveraging strategic collaborative initiatives to increase their market shares and profitability.

In 2018, PayPal Holdings Inc announced the acquisition of fraud prevention technology company Simility for $120 million in cash.

Why Purchase the Report?

• Identify new growth opportunities with In-depth insights for strategic business plans and design innovative strategies for sustainable growth.
• Comprehensive details on factors that will drive or challenge the growth of market players.
• Deep Sector-Specific Intelligence
• Attractiveness and consumer behavior analysis for every region
• Highlights of the competitive landscape

Target Audience:

• Cloud service providers
• System integrators
• Government agencies
• Small and medium enterprises who would like to lessen their operational costs
• Enterprises and businesses that require business-specific applications based on demand.

**The Global Fraud Detection and Prevention Market report would provide access to an approx, 61 market data tables, 72 figures, and 150 pages.