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The global identity theft protection services market size was USD 8.94 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with identity theft protection services witnessing a positive demand shock across all regions amid the pandemic. Based on our analysis, this market exhibited a significant growth of 12.9% in 2020 as compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 10.11 billion in 2021 to USD 24.90 billion in 2028 at a CAGR of 13.7% in the 2021-2028 period. The steady rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
The surge in communications and the digitalization of businesses have increased the risk of cyberattacks as well as have introduced a wide range of new risks to organizations. Identity theft is the fastest-growing financial crime, affecting about 10 million Americans each year. As per ‘Generali Global Assistance’, in 2019, American people reported losing more than USD 1.9 billion to fraud, which is an increase of USD 293 million since 2018. Identity theft occurs when personal information, such as an address, social security number, date of birth, telephone numbers, bank account numbers, credit card, and passwords, is used by thieves to conduct any fraudulent activity such as opening fake accounts, applying for loans, making large purchases, and draining users’ bank accounts. Therefore, consumers, as well as enterprises, are increasingly spending on identity theft protection services to protect their employees and company’s data from hackers, achieve business growth, recruiting goals, and employee retention.
Rollout of New Programs & Practices amid COVID-19 to Accelerate the Demand for Identity Theft Protection Services
During the COVID-19 pandemic, the shift of onsite employees to remote home-based locations increased the chances of cyberattacks. An increase in personal and business information being shared through home networks – personal and work devices – made it easier for hackers to break the enterprise security framework with an incursion of coronavirus scams targeting employees, clients, and consumers.
Fraudsters are utilizing the opportunity to steal the financial information, Personally Identifiable Information (PII), and medical information of those looking for treatment, knowledge, and protection from the viral infection. Besides, the drastic surge in online shopping to avoid exposure to COVID-19 has increased the demand for credit card fraud protection services. As per the TransUnion fraud survey, one in ten adults in the US has fallen victim to identity theft since the start of the pandemic.
Rolling out of new programs, and rapid changes in tax due-date extension and direct stimulus payments in response to COVID-19 has activated fraudsters to steal information for misuse. The Federal Bureau of Investigation (FBI) has warned of numerous scams related to the coronavirus as Americans have begun receiving letters, emails, and calls from scammers posing as the IRS. Thus, to remain vigilant in safeguarding business and personal information, the demand for identity theft type of protection services has been increasing.
However, the identity theft insurance industry experienced a decline in their services in 2020 as compared to 2019, as consumer spending declined, which resulted in less demand for such products and services.
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Rising Number of Identity Theft in Government and Public Sectors to Bolster Demand
In recent years, attacks on government agencies, non-profit organizations, and other institutions within the public sector have risen steeply. As government departments have started depending on computer networks and electronic data to conduct their daily operations, enlarged pools of financial and personal information are being transferred and stored online. This might leave government departments and public agencies exposed to potentially enormous liability, if and when identity theft occurs. In fact, identity theft is one of the fastest-growing forms of crime in the government sector as government records can be exploited in several ways –tax fraud being one of the most popular identity theft in recent times. For instance,
Moreover, as state and federal government agencies are supporting millions of consumers impacted by the coronavirus pandemic, it has become easier for fraudsters to gain access to funds and accounts that are meant to help individuals in need. As cybercrime poses an increasing and permanent threat, governments and public sector agencies using cyberspace are continuously struggling to ensure an adequate level of security over their data and assets. Thus, the increasing number of fraudulent activities in government and public agencies is expected to boost market growth.
Rise in Internet-based Financial Transactions to Necessitate the Deployment of Identity Theft Protection Services
Online financial transactions have been experiencing rapid proliferation over the past few years, driven by factors such as convenience and speed. Internet-enabled transactions have not only empowered banks to scale up and widen in terms of offering value-based services but have also enabled them to augment customer experiences. However, technology-driven financial transactions have become a weapon of choice for fraudsters. For instance,
Snowballing of malicious data breaches related to internet-based financial transactions is foreseen to necessitate the deployment of these services. These services track data of invaders monitoring users’ personal data and offer comprehensive protection by masking important details. Thus, rising concerns associated with identity thefts and data breaches are likely to position the identity theft protection services market for vigorous growth in the near future.
High Costs Associated with the Services Might Impede Identity Theft Protection Services Market Growth
Identity theft protection services can be expensive depending on how comprehensively users want their assets to be protected. The plans for these services range from about USD 10 to USD 30 per month, depending upon the services being chosen. For example, the identity theft insurance service might cover only a few services related to insurance and might not cover legal expenses and time spent away from work services. Adding extra services increases the price of the plan. Thus, the SMEs that are less susceptible to fraud avoid purchasing this service and opt for free services.
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Rising Number of Credit Card Holders to Drive the Market Growth
On the basis of type, the market has been categorized into credit card fraud, bank fraud, phone or utility fraud, and employment or tax-related fraud.
Among these, the credit card fraud segment accounts for the largest market share as the demand for credit card-related protection services is increasing with the rising number of credit cardholders. However, the bank fraud segment is expected to showcase the highest growth rate during the forecast period owing to the increasing preference for online banking transactions, driven by speed and convenience. Besides, fraudsters have been preying on utility consumers by taking advantage of rising electricity and phone bills, thereby stealing financial and personal information. The employment and tax-related fraud segment is expected to showcase significant growth owing to the rising number of tax frauds and the increasing number of identity thefts associated with rewards and loyalty programs and retirement accounts.
Consumer be the Fastest Growing Segment Backed by Increasing Online Presence
Based on application, the market has been segmented into consumers and enterprises.
Among these, the enterprise is the leading segment owing to the growing number of data breaches, frauds, and thefts in companies, comprising the employees as well as confidential business data. However, the consumer segment is anticipated to be the fastest-growing segment as the number of consumers opening online shopping accounts, social media accounts, and online banking accounts are rising at high speed.
North America Identity Theft Protection Services Market Size, 2020 (USD Billion)
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By region, the market has been analyzed across five major regions, namely North America, Europe, South America, the Middle East & Africa, and Asia Pacific.
North America dominates the global market as an e-commerce sector and is flourishing at a high rate, leading to the opening of new online accounts. In recent times, the US government has taken steps to curb identity theft such as the BuySecure initiative, a dedicated task force for identity theft in the country.
Asia Pacific is expected to showcase the highest CAGR during the forecasted period owing to the increasing number of credit cardholders and growing adoption of digital payment modes in the region. Europe holds the second position in the market in terms of market share due to the growing number of fraudulent activities occurring due to stealing of postal mails, rising malicious software activities, and a surge in the number of phishing events to trick people and get their personal information.
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Furthermore, the Middle East and Africa, and South America are expected to grow at a significant rate owing to increasing internet penetration along with rising internet-based financial transactions.
Strategic Alliances and Partnerships Strategies are Adopted to Stay Competitive in the Market
The identity theft protection services industry is growing at a rapid pace owing to increasing competition, technological innovations, and mergers and acquisitions activities among local and regional vendors that are offering specific application services for varied end-users. The public and private companies are forming alliances with other small and medium enterprises to strengthen their market presence.
November 2020 – Sontiq, an Intelligent Identity Security provider, partnered with Breach Clarity, a Fintech provider, to offer solutions that would empower individuals in the fight against identity vulnerabilities and data breaches with unprecedented personalized breach risk intelligence.
October 2020 – Nationwide, an Insurance and Financial Services Company, partnered with Generali Global Assistance (GGA) to launch personal cyber protection services under its Identity Theft Protection Program. These services will be made available to Nationwide users to help protect them from a growing number of cybersecurity attacks and threats.
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The global identity theft protection services market research report highlights leading regions across the world to offer a better understanding to the user. Furthermore, the report provides insights into the latest industry growth trends and analyzes technologies that are being deployed at a rapid pace at the global level. It further offers some of the drivers and restraints helping the reader to gain in-depth knowledge about the market.
Value (USD Billion)
Type; Application; and Region
According to Fortune Business Insights, the global market size is expected to reach USD 24.90 billion by 2028.
In 2020, the market value stood at USD 8.94 billion.
The market is projected to grow at a CAGR of 13.7% during the forecast period.
The credit card fraud segment is expected to be the leading segment in the market.
Rise in internet-based financial transactions is the key factor driving market growth.
Equifax, Inc., LexisNexis Risk Solutions, AllClear ID, Experian Information Solutions, Inc., Fair Isaac Corporation, NortonLifeLock Inc., TransUnion LLC, IdentityForce, Inc., IdentityIQ, among others are the top players in the market.
The North America region is expected to hold the highest market share.
Asia Pacific is expected to grow at a highest CAGR during the forecast period
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