"Smart Strategies, Giving Speed to your Growth Trajectory"
The global identity theft protection services market size was valued at USD 11.56 billion in 2022 and is projected to grow from USD 13.13 billion in 2023 to USD 33.35 billion by 2030, exhibiting a CAGR of 14.2% during the forecast period.
The surge in communication networks and digitalization of businesses have increased the risk of cyberattacks and exposed organizations to a wide range of new risks. According to the U.S. government, identity theft is the fastest-growing financial crime, affecting about 15 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 U.S. in 2021. This figure was a 68% increase from that in 2020 and around 23% more than the previous all-time high of 1,506.
Identity theft occurs when personal information, such as addresses, social security numbers, date of birth, telephone numbers, bank account numbers, credit cards, and passwords, is used by hackers 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 increasing their spending on identity theft protection services to protect their employees and confidential data from cyber attackers, achieve business growth, meet recruiting goals, and boost employee retention.
Rollout of New Programs & Practices amid COVID-19 Accelerated Demand for Identity Theft Protection Services
The relocation of on-site staff to distant home offices during the COVID-19 pandemic led to more cyberattacks. With an uptick in COVID-19-related frauds targeting employees, clients, and consumers, an increase in the online sharing of personal and business information through home networks and personal & work devices made hacking easier to breach data.
As per the Federal Trade Commission (FTC), the pandemic caused a notable surge in scams related to identity theft. It stated that on 29th March 2021, it received 3,038 COVID-related identity theft reports, which was the highest in a single day.
Fraudsters misuse the opportunity to leverage Personally Identifiable Information (PII), financial information, and medical records of those looking for treatment, knowledge, and protection from the viral infection. Besides, the drastic surge in shopping online to avoid exposure to COVID-19 increased the demand for credit card fraud protection services. As per a TransUnion fraud survey, one in ten adults in the U.S. experienced identity theft since the start of the pandemic in 2020.
Rolling out of new programs and rapid changes in the extension of due dates for paying taxes in response to COVID-19 have encouraged fraudsters to steal information for misuse. The Federal Bureau of Investigation (FBI) had warned of numerous scams related to the coronavirus. However, the identity theft insurance industry experienced a decline in their services in 2020 as compared to 2019 as consumer spending declined, resulting in less demand for such products and services.
Request a Free sample to learn more about this report.
Rising Number of Identity Thefts in Government and Public Sectors to Bolster Service Demand
In recent years, cyberattacks on non-profit organizations, government agencies, and institutions within the public sector have risen considerably. As government departments have started depending on electronic data and computer networks to conduct their daily operations, large pools of personal and financial information are being transferred and stored online. 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,
As federal and state governments support millions of consumers impacted by COVID-19, 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, government organizations and public sector companies using cyberspace are continuously struggling to ensure adequate security for their assets and data. These factors are likely to generate tremendous growth opportunities for the market.
Rising Online Financial Transactions to Necessitate Deployment of Identity Theft Protection Services
The number of online transactions has been experiencing rapid growth over the past few years, driven by factors, such as high convenience and speed. Internet-based transactions have not only empowered banks to scale up and widen their offerings and value-based services but also enabled them to improve their customers’ experiences. However, fraudsters are utilizing technology-based transactions to target confidential data. For instance:
A rise in malicious cyberattacks related to online transactions is expected to necessitate the deployment of these services, which track the data of invaders, monitor users’ personal data while offering comprehensive protection by masking important details. Thus, rising concerns associated with data breach and identity theft are likely to propel the identity theft protection services market growth in the coming years.
High Costs Associated with Identity Theft Protection Services Might Impede Market Growth
Identity theft protection services can be expensive depending on how well users want their assets to be protected. The plans for these services range from about USD 10 to USD 30 per month, depending on the chosen services. For example, identity theft insurance services might cover only a few services related to insurance and might not take legal expenses and time spent away from work services into consideration. Adding extra services also increases the price of the plan. Thus, the SMEs that are less susceptible to fraud avoid purchasing identity theft protection services and opt for free services instead.
To know how our report can help streamline your business, Speak to Analyst
Rising Number of Credit Card Users to Drive Market Growth
Based on 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 identity theft protection services market share as the demand for credit card-related protection services is increasing with the rising credit card users. 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 as they offer high 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 due to the rising number of tax frauds and increasing incidence of identity thefts associated with rewards & loyalty programs and retirement accounts.
Consumer to Lead Market Growth Owing to Their Increasing Online Presence
Based on application, the market has been bifurcated into consumers and enterprises.
The consumer segment is leading the market growth as the number of consumers opening online shopping accounts, social media accounts, and online banking accounts are rising at a strong rate. However, the enterprise segment is expected to show the highest CAGR during the forecast period owing to the growing number of data breaches, frauds, and thefts in various industries.
North America Identity Theft Protection Services Market Size, 2022 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
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 share as the region’s e-commerce sector is flourishing at a notable rate and users are opening new online accounts for the same. 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 forecast period led by the rising credit card users along with increasing online payments.
Europe holds the second position in the market in terms of market share due to the growing fraudulent activities, which stemmed from stealing personal mail, rising malicious software activities, and a surge in cyberattacks, tricking people, and acquiring confidential information.
To know how our report can help streamline your business, Speak to Analyst
Furthermore, the Middle East, Africa, and South America regions are expected to grow significantly due to increasing internet penetration and rising internet-based financial transactions.
Companies Adopt Strategic Alliance and Partnership Strategies to Fuel Competition
The identity theft protection services industry is growing rapidly due to increasing competition, technological innovations, and merger & acquisition activities among local and regional vendors that offer specific application services for varied end-users. Many 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. and was made available to its credit card members. This extended service aimed to enable existing and new 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 solutions provider, to offer solutions that would empower individuals in their fight against identity vulnerabilities and data breaches by providing personalized breach risk intelligence.
An Infographic Representation of Identity Theft Protection Services Market
To get information on various segments, share your queries with us
The market research report highlights leading regions across the world to offer users a better understanding of the market. Furthermore, the report provides valuable insights into the latest industry 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.
CAGR of 14.2% from 2023 to 2030
Value (USD billion)
By Type, Application, and Region
According to Fortune Business Insights, the global size market is expected to reach USD 33.35 billion by 2030.
In 2022, the market value stood at USD 11.56 billion.
The market is projected to record a CAGR of 14.2% 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 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 key players in the market.
The North America region is expected to hold the largest market share.
Asia Pacific is expected to record the highest CAGR during the forecast period.
“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”- U.S.-based biotechnology company focussing on treatment of chronic pain.
“Kudos to your team. Thank you very much for your support and agility to answer our questions.”- Europe-based provider of solutions to automate data centre operations.
“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”- India-based manufacturer of industrial and specialty intermediates with a strong global presence.
“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”- One of the largest cosmetics company in the world.
“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”- U.S. based startup operating in the cultivated meat market.
“We received the below report on the U.S. market from you. We were very satisfied with the report.”- UGlobal hearing aids manufacturer.
“I just finished my first pass-through of the report. Great work! Thank you!”- U.S. based solar racking solutions provider.
“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”- World’s leading advisory firm.
“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”- Germany based machine construction company.
“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”- Japanese manufacturing company of stationery products.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry