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The global identity theft protection services market valued at USD 10.07 billion in 2021. The market is projected to grow from USD 11.39 billion in 2022 to USD 27.90 billion by 2029, exhibiting a CAGR of 13.7% during the forecast period. The global impact of COVID-19 pandemic has been unprecedented and staggering, with identity theft protection services experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market had exhibited a rise of 12.8% in 2020 compared to 2019.
The surge in communications and the digitalization of businesses have increased the risk of cyber-attacks and 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 a survey conducted by Security.org, around 67% of U.S. adults stated that they had their identities stolen in 2019-2020. The number of identity theft victims increased to over 20.7 million in 2020. Further, according to the Identity Theft Research Center (ITRC) report, there was a record of 1,862 data compromises in the United States in 2021, which is a 68% increase compared to 2020 and around 23% over the previous all-time high record of 1,506.
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 and 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 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 cyber-attacks. An increase in personal and business information being shared through home networks and 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 utilize the opportunity to steal the financial information, Personally Identifiable Information (PII), and medical information of those looking for treatment, knowledge, and protection from 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 U.S. 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 protection services has increased.
However, the identity theft insurance industry experienced a decline in their services in 2020 compared to 2019, as consumer spending declined, resulting 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. If and when identity theft occurs, this factor might leave government departments and public agencies exposed to potentially enormous liability. Identity theft is one of the fastest-growing forms of crime in the government sector. Government records can be exploited in several ways –tax fraud being one of the most popular forms of identity theft in recent times. For instance,
Moreover, as state and federal government agencies support millions of consumers impacted by the coronavirus pandemic, it has become easier for fraudsters to gain access to funds and accounts 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 adequate security over their data and assets. Thus, the increasing number of fraudulent activities in government and public agencies is expected to boost the demand for these services.
Rising Internet-based Financial Transactions to Necessitate Identity Theft Protection Services Deployment
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 the data of invaders, monitor user’s personal data and offer comprehensive protection by masking important details. Thus, rising concerns associated with identity thefts and data breaches are likely to position this market for vigorous growth in the near future.
High Costs Associated with Identity Protection Services Might to 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 on chosen services. 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 less susceptible to fraud avoid purchasing these services and opt for free services.
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Rising Number of Credit Card Holders to Drive Market Growth
Based on type, the identity theft protection services 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 increases 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 Leading Segment Backed by Increasing Online Presence
Based on application, the market has been segmented into consumers and enterprises.
Among these, the consumer is the leading segment as the number of consumers opening online shopping accounts, social media accounts, and online banking accounts are rising at high speed. However, the enterprise is expected to show highest CAGR during the forecast period owing to the growing number of data breaches, frauds, and thefts activities in industries.
North America Identity Theft Protection Services Market Size, 2021 (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 identity theft protection services market share as an e-commerce sector and is flourishing at a high rate, opening new online accounts. The U.S. government has recently 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 due to the increasing number of credit cardholders and the 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 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, Africa, and South America are expected to grow significantly due to increasing internet penetration and rising internet-based financial transactions.
Companies Adopt Strategic Alliances and Partnerships Strategies to Fuel Competition
The identity theft protection services industry is growing rapidly due to increasing competition, technological innovations, and mergers and acquisitions activities among local and regional vendors that offer 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.
May 2021 – Discover Financial Services introduced an identity theft protection service for all consumers in the U.S., extending a service that the company has made available to its credit card members. This extended service aims to enable their existing and potential customers to view the company as a full-service digital bank.
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.
An Infographic Representation of Identity Theft Protection Services Market
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The global identity theft protection services market 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 gain in-depth knowledge about the market.
Value (USD billion)
Type; Application; and Region
According to Fortune Business Insights, the global size market is expected to reach USD 27.90 billion by 2029.
In 2020, the market value stood at USD 10.07 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.
A rise in internet-based financial transactions is the key factor driving the market growth.
Equifax, Inc., NortonLifeLock Inc., TransUnion LLC, Experian Information Solutions, Inc., Malwarebytes Ltd, LexisNexis Risk Solutions, Sontiq, Kroll, Fair Isaac Corporation, McAfee, LLC, among others, are the top players in the market.
The North American region is expected to hold the highest market share.
Asia Pacific is expected to grow at the highest CAGR during the forecast period
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