Fraud Detection and Prevention Market Size, Share & COVID-19 Impact Analysis, By Component (Solutions and Services), By Application Area (Insurance Claims, Money Laundering, Electronic Payment, and others), By Deployment (Cloud and On-Premise), By Enterprise Size (Large Enterprises and Small & Medium Enterprises (SMEs)), By Industry (BFSI, IT and Telecom, Retail and Consumer Packaged Goods, Government, Construction and Real Estate, Energy and Utilities, Travel and Transportation, Manufacturing, Healthcare and Life Sciences, Media and Entertainment and Other), and Regional Forecast, 2022-2029

The global fraud detection and prevention market size was USD 25.66 billion in 2021. The market is exhibited to grow from USD 30.65 billion in 2022 to USD 129.17 billion in 2029, exhibiting a CAGR of 22.8% during the forecast period. The global impact of COVID-19 has been unprecedented and staggering, with fraud detection and prevention solutions experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a higher growth of 18.4% in 2021 as compared to the average year-on-year growth during 2019.

The rising investment by major market players to introduce secure fraud solutions across the various industries, such as manufacturing, BFSI, healthcare, and others is anticipated to drive the market growth. Government and end-use enterprises across countries including the India, U.S., Brazil, China, U.K., Germany, Brazil, among others, are investing in implementing advanced fraud prevention solutions. The shift in end-users focus towards e-commerce platforms drives the market growth. Prominent market players are focused on various business strategies to expand their product offerings.

• For instance, in October 2020, BAE Systems collaborated with Guidewire Software to launch and develop fraud prevention solutions with the integration of NetReveal, based on Guidewire’s ClaimCenter platform.

COVID-19 Impact

Increasing Demand for Cloud-based Solutions across Healthcare Industry to Aid Growth

The coronavirus pandemic had drastic impact on the global economy. The overall demand for fraud detection and prevention (FDP) solutions declined slightly across various applications in the initial period of 2020. Also, several commercial campaigns, projected investment, government strategies, and others are on hold owing to a lack of functioning.

The stance for the market size in the second half of the year 2020 and beyond increased the adoption of fraud detection and prevention solutions owing to increased cybercrimes, payments frauds, insurance frauds, and others. Individuals are claiming their life and health insurance for medical expenses for COVID-19. The increased online insurance claims has provided opportunities to fraudsters for fraudulent activities across insurance claims from hospitals and the government. This is expected to drive the adoption of solutions across government and healthcare sectors.                                                        

Prominent players in the market have adopted various innovative strategies to respond to the growing number of fraudulent activities. Key players in the market are focused on developing advanced fraud monitoring and preventing solutions.

• For instance, in February 2021, ClearSale LLC launched an e-commerce podcast to detect and mitigate fraud activities. The solution is developed to discuss challenges and emerging trends related to fraud across e-commerce and social media platforms during the ongoing COVID-19 pandemic.


• In October 2020- Thales Group, Gemalto launched an identity verification suite during a pandemic. The solution helps to minimize ID fraud by digitally checking customers' identities by verifying documents authenticity.

Such active initiatives are expected to drive the fraud detection and prevention market growth in the forthcoming period.

LATEST TRENDS

Request a Free sample to learn more about this report.

Growing Adoption of Cloud Increased the Adoption Rate of Fraud Detection Solutions

Cloud technology acts as a key trend for fraud detection and prevention. It offers robust processing power, storage space, and access through the internet. As well as cloud technology allows rapid tracing of online cyber-crimes. Further, small and mid-sized enterprises operating in banking and financial institutions are actively deploying cloud-based fraud detection and prevention services across the organizations.

• For instance, in November 2019, ACI Worldwide, Inc. collaborated with Salesforce.com Inc. The aim of the partnership is to integrate the Salesforce commerce cloud with the corporation’s real-time fraud prevention system. The integration offers the capabilities such as predictive analytics, machine learning, customer profiling techniques, and others.

Other key trends driving the demand for fraud prevention solutions are increasing the internet of things (IoT), cloud computing, big data, and Blockchain technology.

DRIVING FACTORS

Increasing Online Application and Mobile Banking Services to Propel Market Growth

The growing adoption of online applications and mobile banking services has led to an abrupt number of fake websites and mobile applications. In other sectors, such as retail & e-commerce, manufacturing, and healthcare, there is an increase in fake websites and online applications. These websites and applications resemble exact retail shops and home delivery services and trap customers to complete fake online transactions. Customers in the banking sector are more focused on mobile applications for various purposes such as online payment, statement review, registering complaints, and feedback, among others.

• According to Boston Consulting Group (BCG), around 70% of urbanite users worldwide are digitally influenced to purchase financial products and services using online banking applications or any mobile banking websites. Numerous organizations are implementing solutions across their business units to advance their business road maps in the present economic situation.

The growing number of internet users, increasing adoption of digital payment methods, and rising number of start-ups are expected to further bode well for the growth of the global fraud detection and prevention market during the forecast period.

RESTRAINING FACTORS

Lack of Professionals & Awareness across Developing Nations to Impede Growth

Lack of professionals and skilled workforce to update the FDP solutions across the emerging countries is expected to hinder the growth of the market. Corporations keep their important records and documentation of their customer’s data on the servers. Thus to protect and securing the records is essential for businesses from money launderers. Though, sometimes advanced cyber-attacks and novel anonymous threats are expected to challenge the traditional FDP solutions.

Another market limitation for the growth is the lack of acceptance and responsiveness across the developing nations across the Middle East and Africa, APAC, South America, such as Mexico, Argentina, Chile, Peru, Colombia, and the Caribbean countries.

SEGMENTATION

By Component Analysis

Rising Demand for Fraud Analytics Solutions, to Aid Market Growth

Based on the component, the market is separated into solutions and services.

The services are likely to grow at a substantial growth rate during the prediction period. The growth is mainly attributable to the increasing demand for professional services such as consulting, training & education, and support & maintenance by large enterprises.

The solutions are sub-distributed into fraud analytics, governance, risk, and compliance, and authentication. Among the solutions, the authentication segment is expected to capture a large market share during the period. Providing extra security layers and blockades makes it exceptionally challenging for an invader to attack confidential data. For instance, in August 2019, Microsoft Corporation stated that around 99.9% of attacks can be prohibited by deploying multi-factor authentication. Further, the fraud segment is distributed as big data analytics, customer analytics, predictive analytics, social media analytics, and behavioral analytics.

By Deployment Analysis

Cloud Security Solutions to Drive the Market towards a Higher Growth Trajectory

By deployment, the market is classified into on-premise and cloud.

The cloud segment is anticipated to gain traction in coming years attributed to the advancements in artificial intelligence, and data analytics. Small & mid-sized enterprises are likely to be the potential customers of cloud-based fraud detection and prevention software. Limited security spending’s & IT infrastructure fuel the demand for cloud-based solutions across the SME’s.

The on-premise segment is likely to rise with stable growth due to dependable solutions and services across government and education sectors.

By Enterprise Size Analysis

Growing Adoption of Security Solutions across SMEs to Boost Market

By enterprise size, the market is segmented into large enterprises and small & medium enterprises (SMEs).

The small & medium enterprises (SMEs) section is anticipated to grow with an exceptional CAGR during the projection period. The development is mainly due to the increasing demand for security solutions, tailored with the increasing number of start-ups in Germany, Brazil, Canada, and Israel among others. The large enterprise segment is anticipated to show a significant growth in the coming years, owing to rise in fraudulent activities driven by the escalating digital transformation across the industries.

By Application Area Analysis

To know how our report can help streamline your business, Speak to Analyst

Increasing Numbers of Fraudulent Claims Activities, Led to Adoption of Insurance Claims Solution

Based on the application area, the market is classified into insurance claims, money laundering, electronic payment, and others.

The electronic payment segment is likely to register the major market share during the prediction period. The growth in the segment is attributed to the increasing adoption of mobile banking, online payment, mobile wallets transactions, SMS, and others.

The insurance claims segment is expected to grow significantly owing to the increasing numbers of fraudulent claims such as disaster insurance fraud, contractor insurance fraud, cloud accident insurance fraud, break-in insurance, among others.

By Industry Analysis

Increasing Adoption across BFSI, Healthcare, and Government Sectors to Aid Growth

By Industry, the market is segmented into BFSI, IT & telecom, travel & transportation, retail & consumer packaged goods, energy & utilities, construction & real estate, government, manufacturing, healthcare & life sciences, media & entertainment, and others.

The healthcare & life sciences segment is expected to gain traction during forecast period owing to the growing demand for the fraud analytics and authentication solutions and services. The increased numbers of fraudulent claims such as and disaster insurance fraud, break-in insurance, and life insurance fraud are projected to expand the market size.

The other industries, such as government, BFSI, manufacturing, media & entertainment, IT & telecom, and energy & utilities, are projected to grow substantially. The increased implementation of fraud analytics solutions including predictive analytics, behavioral analytics, among others, are expected to boost the market.

REGIONAL INSIGHTS

To get more information on the regional analysis of this market, Request a Free sample

Geographically, the market is divided across five major regions, namely North America, Asia Pacific, Europe, South America, and the Middle East & Africa.

In North America, prominent players in the mobile payment industry such as Apple Inc., Samsung Group, and others are focused on introducing advanced technology enabled mobile payment services built on fraud prevention solutions.

Organizations in the U.S. and Canada are focusing on adopting FDP solutions to secure critical information from growing cyber-attacks. Governments of the U.S. and Canada are actively implementing various strategies to launch a secure and robust payment platform with the integration of advanced fraud prevention solutions.

• In October 2019, Bank of America launched a mobile banking application developed on fraud detection solutions, with around 29 million users. The banking application is supported by an Artificial intelligence (AI) driven virtual financial assistant, Erica, the application is built to assist their customers in tracking and managing their financials and investments.

Asia Pacific is expected to grow with the highest CAGR during the forecast period (2022-2029). Manufacturing players in countries such as China, Japan, India, South Korea, Southeast Asian countries, and others are increasing their investment to adopt fraud prevention solutions. These countries have a wide number of services providers of fraud prevention solutions.

Europe is expected to grow with a significant CAGR during the forecast period (2022-2029). Government, manufacturing, and healthcare players in countries such as France, Germany, Italy, Spain, Luxembourg, Netherlands, and others, are highly investing in adopting fraud prevention solutions.

To know how our report can help streamline your business, Speak to Analyst

South America and the Middle East & Africa (MEA) regions are slated to witness healthy growth in the market. Companies in South America and MEA have started focusing on adopting fraud prevention solutions across diverse industries. Brazil is expected to dominate the South American market during the forecast period. The growth in the South American countries is driven by the development of various IT projects.

KEY INDUSTRY PLAYERS

Focus of Key Players towards Innovative FDP Solutions to Strengthen Competition

Key players, including IBM Corporation, BAE System, Uplexis, Experian Information Solutions Inc., ACI Worldwide and Fair Isaac Corporation, are among the top players in the market. These players are considered market leaders and focus on expanding their geographical presence and strengthening their brand name in developing countries. Also, these large corporations are primarily focusing on acquisition and collaborations with domestic players to strengthen their presence in the market.

• For instance, in November 2020, Amdocs collaborated with Amazon Web Services to offer cloud-native Business Support Systems (BSS) offerings and accelerate IT & telecom telecommunications to shift and adopt cloud platforms.

List of the Key Companies Profiled:

• IBM Corporation (U.S.)


• Uplexis (Brazil)


• Experian Information Solutions, Inc. (Brazil)


• Gemalto - Thales Group (France)


• ACI Worldwide, Inc. (U.S)


• BAE Systems (U.K.)


• Fair Isaac Corporation (U.S.)


• Fidelity National Information Services, Inc. (U.S.)


• LexisNexis (U.S.)


• NICE Actimize Ltd. (Israel)


• F5 Inc. (U.S.)


• SAS Institute, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• April 2021 - NICE Actimize launched SURVEIL-X, an AI-powered suitability and surveillance solution for the wealth and insurance sector. The solution developed on holistic surveillance platform called as SURVEIL-X.


• November 2020 - BAE Systems upgraded its NetReveal KYC/CDD, watch list screening, and anti-money laundering transaction monitoring, and filtering solutions services.


• September 2019 - Temenos AG launched artificial intelligence based financial proofing tool, Temenos Peer Group Identifier. The tool is developed for augmenting the detection of financial crime on uppermost risk transactions; thus it assists to improve the performance of the organization.

REPORT COVERAGE

An Infographic Representation of Fraud Detection and Prevention Market

View Full Infographic

To get information on various segments, share your queries with us

The global fraud detection and prevention market research report provides a detailed analysis of the market. It focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the key market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the growth of the advanced market over the recent years.

Report Scope and Segmentation