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Fraud Detection and Prevention Market Size, Share & COVID-19 Impact Analysis, By Component (Solution and Services), By Deployment (On-Premise and Cloud), By Enterprise Size (Large Enterprises and Small and Medium Enterprises), By Application Area (Insurance Claim, Money Laundering), By Vertical (BFSI, IT and Telecommunication, Government, Retail and Consumer packed Goods, Manufacturing, Health and Life Sciences) and Regional Forecast, 2020-2027

Region : Global | Format: PDF | Report ID: FBI100231



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The global fraud detection and prevention market size was valued at USD 19.82 billion in 2019 and is projected to reach USD 106.71 billion by 2027, exhibiting a CAGR of 24.4% during the forecast period.

With the development of advanced technologies and digitization, fraudsters have also changed the way of theft. Growing digitization in banks and financial institutions globally to customers has offered opportunities for cybercriminals to carry out fraudulent activities. The ongoing trend of mobile banking, online payment, and online transactions are significantly posing new threats, thereby driving fraud detection and prevention market growth. Integration of fraud detection systems with advanced artificial intelligence (AI), machine learning, and analytical technologies are expected to boom market growth in the coming years.

Growing Online Transaction during COVID-19 Pandemic to Boost Market

COVID-19 global pandemic has transformed the global business landscape. Organizations, businesses, have directed their attention towards the online platform at large. Adoption of e-commerce and relatively e-payment transactions have escalated during the crisis which also generates opportunities for fraud attempts. According to the PwC’s 2020 Global Economic Crime and Fraud Survey, among the 5,000 respondents, 47% experienced fraud in the past 24 months and experienced loss of around USD 42 billion due to fraudulent activities. Thereby, the majority of the businesses and have been adopting FDP solutions.


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Artificial Intelligence (AI) and Machine Learning FDP Systems to Gain Traction in the Banking Industry

Since early 2010, major banks have adopted an AI-based fraud detection system for anti-money laundering, automating the fraud and cybersecurity applications. Banks are applying different approaches to artificial intelligence for identifying loan fraud, payment fraud, and customer onboarding fraud. Several key players are also deploying artificial intelligence and machine learning capabilities to their fraud detecting and preventing model to augment the performance. In October 2019, Bank of England and Financial Conduct Authority (FCA) conducted a survey ‘Machine Learning in UK Financial Services’. The survey cited that, almost 57% of respondents were already using AI-based anti-fraud and anti-money laundering solutions.


Growing Popularity of the Electronic Transaction to fuel Market Demand

With the emergence of digital payments or electronic payments (E-payment) systems, fraudsters have also transformed their way of theft. E-commerce retailers have seen increased demand for electronic transactions over the past several years. According to Capgemini's financial services analysis in 2019, the number of worldwide non-cash transactions expected to reach 1,045.5 billion by 2022. Monitoring of the possible threats during e-transactions using advanced techniques helps to secure the customer's details and alerts about payment frauds. For instance, In July 2018, Wibmo, Inc. launched an advanced version of anti-fraud solutions for its customers to defend their e-payment services. Such growing adoption of advanced fraud detecting and preventing solutions is becoming a necessity for financial institutes that drives the adoption for FDP system.


Limited Data Visibility and Prominence to Affects Fraud Detection Results Leading to Limited Adoption

Fraud detection and prevention system should be able to deal with unknown and surprising fraud attempts. However, inadequate data visibility confines the system to conclude confidential and accurate fraud detection results. Thereby, limited data prominence often generates false-positive results, affecting the FDP system performance and its adoption as well.  


By Component Analysis

Authentication Segment is Anticipated to Propel the Market Owing to Significant Emphasize on Security

Based on the component, the FDP market is segmented as solutions and services. FDP solution segment is dominating the market and it is expected to continue its growth. Fraud analytics, authentication, and governance, risk & compliance are some of the key solution segment. The authentication segment is holding a large market share. Providing extra blockades or security layers makes extremely challenging for an attacker to theft confidential data or user identity. Thereby, multifactor authentication is gaining traction in the FDP market. For instance, in August 2019, Microsoft Corporation states that 99.9% of account compromise attacks can be prevented using multi-factor authentication.

By Deployment Analysis

High Demand for Cloud-based Solutions Due to Operational Flexibility and Cost Efficiency

Deployment types, namely on-premise and cloud are considered under by deployment segment. Currently, key players are offering both on-premise and cloud-based FDP solutions to customers. The on-premise deployment model is estimated to lagging by cloud-based FDP solutions. The cheaper price of cloud-based FDP solutions attracting many organizations, thereby propelling market growth.

By Enterprise Size Analysis

Large Enterprises are accounting for Majority of the Market share

By enterprise, the market is bifurcated into large enterprises and small and medium enterprises (SMEs). Large enterprises held more than half the Fraud Detection and Prevention market share. The ongoing trend of digitalization has led large organizations to adopt advanced software and networks. Large enterprises are majorly adopting fraud detection, fraud prevention, compliance management, and risk management solutions. Whereas, cost-effective cloud-based solutions are estimated to booming the market across SME’s also.

By Application Area Analysis

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Insurance Claim Segment is anticipated to hold the Highest CAGR During the Fourth-coming Years

Based on the application, the market is categorized into money laundering, electronic payment, insurance claims, and others. Insurance claim applications hold a large market share in the market. Insurance fraud impacting not only the insurer’s financial health but also acquitted people looking for insurance coverage. The numbers of fraudulent claims such as contractor insurance fraud, disaster insurance fraud, break-in insurance, and cloud accident insurance fraud among others are increasing around the globe. Fraudulent claims have become a serious financial burden on insurers that resulting in higher overall insurance costs. These fraudulent claims have led to the high adoption of fraud detection and prevention solutions to protect the insurers.

Similarly, nowadays, financial institutes are facing problems like accounting fraud, money laundering, and asset misappropriation and these challenges are increasing by the day. Key players are offering customizable solutions with interactive dashboards to handle all transaction details for producing complex reports. For instance, in October 2018, Mphasis and BAE Systems partnered together to offer anti-money laundering FDP solutions to banking, financial services, and insurance organizations.

By Vertical Analysis

BFSI Vertical to Dominate the Market Due to Significant Fraudulent Activities in Financial Operations

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

Among these Verticals, BFSI is holding a large share in the global FDP market. Most of the fraudulent activities and vulnerabilities are taking place in the financial sector, hence BFSI industry is largely adopting anti-fraud solutions. The growing popularity of digital banking and online-transaction platforms led them to deploy fraud detection and prevention solutions, for transparent and secure transactions. For instance, In November 2019, the financial services technology provider FIS has integrated the IBM Corporation patented, safer payment solution with its person-to-person (P2P) service, to provide real-time detection and decisions by monitoring large amounts of P2P transactions.

Industries including manufacturing, travel, construction, media, entertainment, energy and utility, and many more industries also contribute moderately to the FDP market growth. 


North America Fraud Detection and Prevention Market Size, 2019 (USD Billion)

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The market size in North America stood at USD 7.45 billion in 2019. Overall fraud incidences are frequently taking place across North America, majorly frauds in the e-commerce industry. With the exponential growth in the data volumes, organizations across North America are majorly adopting FDP solutions, to protect critical information from attackers. According to the Accenture’s report ‘Unmask Digital Frauds Today- 2018’, Card-Not-Present (CNP) fraud losses are expecting to be double than that of fraud loss in the year 2015, due to implementation of EMV chip across the region. The report also stated that more than 50% of fraud losses in the U.S are associated with CNP transactions. Thus, the FDP solution market is witnessing healthy growth across North America.

The presence of prominent market players such as BAE Systems and Software AG is driving significant market growth across Europe. Countries such as the U.K., Germany, Italy, Spain, and France are showcasing the high adoption of FDP solutions. Well-established IT infrastructure across the U.K. and other European countries are focusing on the developments of safe electronic or digital payment methods.  The safety concerns regarding online transaction frauds escalating the market demand across Europe.

The Asia Pacific (APAC) is anticipated to demonstrate the fast growth in fraud detection and prevention market. The increasing use of smartphones across China and India is accelerating the fraud rate across the region. In addition, the adoption of cloud computing technology by small and medium enterprises made opportunities for cyber-attacker to attempt fraud. Organizations are deploying FDP solutions to prevent such fraudulent activities. Additionally, the development of online payment methods led the banking sector across the region to deploy the FDP system.

Development of e-commerce and digital payment platform led financial institutes across the Middle East and Africa (MEA), to adopt the FDP solutions. Thus, the Middle East and Africa are also anticipating driving the potential market growth in the coming years.


Strategic Partnerships, Acquisitions, and Collaborations to Strengthen the Market Positioning of the Players

The market comprises a large number of established players at the global and regional levels. These players are offering real-time fraud detection and prevention techniques to deliver high-quality efficient product and services to their customers. These players are focusing on the continuous enhancement of their FDP solution by leveraging advanced technologies like artificial intelligence (AI), predictive analytics, behavioral analytics, or machine learning. For instance, in September 2019, Temenos AG has introduced AI-powered financial profiling tool named ‘Temenos Peer Group Identifier’ for enhancing financial crime detection on highest risk transactions. The advanced technologies help to enhance the performance of the system. The major companies in the market are emphasizing on strategic partnerships, acquisitions, and collaborations to expand business portfolio geographically and to aid financial performance.  


  • ACI Worldwide, Inc. (Florida, United States)

  • BAE Systems (Farnborough, United Kingdome)

  • DXC Technology Company (Virginia, United States)

  • Dell, Inc. (Texas, United States)

  • Experian Information Solutions, Inc. (California, United States)

  • Fair Isaac Corporation (California, United States)

  • Fidelity National Information Services, Inc. (Florida, United States)

  • Fiserv, Inc. (Wisconsin, United States)

  • Forter (New York, United States)

  • Fraud.net, Inc. (New York, United States)

  • IBM Corporation (New York, United States)

  • NICE Ltd. (Ra'anana, Israel)

  • SAS Institute, Inc. (North Carolina, United States)

  • Signifyd (California, United States)

  • ACH Alert (Tennessee, United States.)

  • Software AG (Ontario, Canada)

  • TransUnion LLC (Chicago, United States)

  • Everlink Payment Services, Inc. (Ontario, Canada)


  • May 2020 – TransUnion LLC., a credit reporting agency, launched a new division named global fraud and identity solution group, to battle with originations of fraud by targeting consumers from their risk profiles.

  • November 2019 – ACI worldwide Inc. partnered with Salesforce.Com Inc., to integrate the company real-time fraud prevention system with Salesforce commerce cloud. The integration will offer the utilization of predictive analytics, machine learning, behavioral model, customer profiling techniques, and many more to block potential fraud and enable genuine transactions.    

  • September 2019 – Everlink Payment Services Inc., based in Canada, extended its partnership with ACI Worldwide Inc., to efficiently drive its new machine learning-based fraud management solution named 'eSCORE'.


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

An Infographic Representation of Fraud Detection and Prevention Market

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Report Scope & Segmentation



Study Period


Base Year


Forecast Period


Historical Period



  Value (USD billion)


By Component

  • Solution

  • Fraud Analytics

    • Customer analytics

    • Predictive Analytics

    • Social Media Analytics

    • Big Data Analytics

    • Behavioral Analytics

  • Authentication

    • Single-Factor Authentication

    • Multifactor Authentication

  • Governance, Risk, and Compliance

  • Services

  • Professional Services

    • Consulting

    • Training and Education

    • Support and Maintenance

  • Managed Services

By Deployment

  • On-Premise

  • Cloud

By Enterprise Size

  • Large Enterprises

  • Small and Medium Enterprises (SME's)

By Application Area

  • Insurance Claim

  • Money Laundering

  • Electronic Payment

  • Others (Banking Transactions, Fund Transfers, and Others)

By Vertical

  • BFSI

  • IT and Telecommunication

  • Government

  • Retail and Consumer Packed Good

  • Manufacturing

  • Health and Life Sciences

  • Construction and Real Estate

  • Travel and Transportation

  • Energy and Utilities

  • Media and Entertainment

  • Others (Energy and Utilities, Hospitality, and Others)

By Geography

  • North America (The U.S. and Canada)

  • Europe (The U.K., Germany, France, Italy, Spain, and Rest of Europe)

  • Asia Pacific (Japan, China, India, South East Asia and Rest of Asia Pacific)

  • Middle East & Africa (South Africa, GCC and Rest of the Middle East & Africa)

  • Latin America (Brazil, Mexico and Rest of Latin America)

Frequently Asked Questions

Fortune Business Insights says that the global fraud detection and prevention market size was USD 19.82 billion in 2019 and is projected to reach USD 106.71 billion by 2027.

In 2019, the North America market value stood at USD 7.45 billion.

The market is anticipated to see a growth of 24.4% during the forecast period (2020-2027).

In the market, the solutions segment is representing the highest market share during the study period.

The popularity of electronic transactions primarily driving the growth of the market.

Some of the major players in the market are IBM Corporation, ACI Worldwide Inc., Experian Information Solutions, Inc., and BAE Systems.

North America dominated the market share in 2019.

The rising fraudulent activities in financial operations to boost the demand for these products.

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