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Fraud Detection and Prevention Market Size, Share & Industry Analysis, By Solution (Fraud Analytics, Authentication and Governance, Risk and Compliance), By Application (Insurance Claims, Money Laundering, Electronic Payment, and Others), By Deployment (On-Premise and Cloud), By Enterprise Type (Large Enterprises and Small & Medium Enterprises (SMEs)), By Industry (BFSI, IT and Telecom, Government, Energy and Utilities, Healthcare and Life Sciences, Media and Entertainment and Others), and Regional Forecast, 2024-2032

Last Updated: July 08, 2024 | Format: PDF | Report ID: FBI100231



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The global fraud detection and prevention market size was valued at USD 43.97 billion in 2023 and is projected to grow from USD 52.82 billion in 2024 to USD 255.39 billion by 2032, exhibiting a CAGR of 21.8% during the forecast period (2024-2032). The increasing spending by key companies on introducing fraud solutions across different industries, such as BFSI, healthcare, manufacturing, and others, is projected to fuel market growth. End-use enterprises and governments across countries, including the U.S., India, Brazil, China, Germany, the U.K., and Brazil invest in employing enhanced fraud prevention solutions. Furthermore, the change in end-users’ emphasis toward e-commerce platforms surges market growth. The companies in this market focus on several business strategies to increase their product offerings.

  • For instance, in October 2020, BAE Systems joined forces with Guidewire Software to develop and release fraud prevention solutions by incorporating NetReveal, built on Guidewire’s ClaimCenter platform.

The overall demand for Fraud Detection and Prevention (FDP) solutions declined slightly across various applications in the first half of 2020 due to the COVID-19 pandemic. Also, several commercial campaigns, projected investments, government strategies, and others were put on hold owing to lack of industrial operations. However, the market size in the second half of 2020 and beyond increased due to the rising adoption of fraud detection and prevention solutions owing to growth in cybercrimes, payment frauds, insurance frauds, and others.

Fraud Detection and Prevention Market Trends

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, which 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 their 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 capabilities such as predictive analytics, machine learning, customer profiling techniques, and others.

Other key trends surging the demand for fraud prevention solutions are the Internet of Things (IoT), cloud computing, Big Data, and block chain technology.

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Fraud Detection and Prevention Market Growth 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 increase in the number of fake websites and mobile applications. In other sectors, such as retail and 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 into completing 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 providing feedback, among others.

  • As per Boston Consulting Group (BCG), approximately 70% of resident users globally are digitally influenced to buy financial products and services using mobile banking websites or e-banking applications. Several companies are installing solutions across their business units to enhance their business road maps in the present economic condition.

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 market during the forecast period.


Lack of Professionals & Awareness across Developing Nations to Impede Growth

The lack of professionals and a skilled workforce to update the FDP solutions across the emerging countries is expected to hinder the growth of the market. Corporations keep important records and documentation of their customers’ data on the servers. Thus, protecting and securing the records is essential for businesses to prevent money laundering. Though, sometimes advanced cyber-attacks and novel anonymous threats are expected to challenge the traditional FDP solutions.

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

Fraud Detection and Prevention Market Segmentation Analysis

By Solution Analysis

Rising Demand for Authentication Solutions to Aid Market Growth

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 in 2023. Providing extra security layers and blockades makes it exceptionally challenging for an invader to attack confidential data. For instance, in August 2019, Microsoft Corporation specified that multi-factor authentication could prohibit about 99.9% of attacks. Furthermore, the fraud analytics segment is distributed as social media analytics, predictive analytics, customer analytics, Big Data analytics, and behavioral analytics.

By Deployment Analysis

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

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

The cloud segment dominated the market in 2023 and is estimated to showcase highest CAGR during forecast period due to 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 SME’s.

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

By Enterprise Type Analysis

Growing Adoption of Security Solutions across SMEs to Boost Market

By enterprise type, the market is segmented into large enterprises and Small & Medium Enterprises (SMEs).

The Small & Medium Enterprises (SMEs) segment is anticipated to grow at a highest CAGR during the projection period. The development is mainly due to the increasing demand for security solutions, tailored to the increasing number of start-ups in Germany, Brazil, Canada, and Israel, among others.

The large enterprise segment dominated the market in 2023, owing to the rise in fraudulent activities driven by the escalating digital transformation across industries.

By Application Analysis

Increasing Adoption of Mobile Banking Led to Adoption of Electronic Payment

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

The electronic payment segment dominated the market in 2023 owing to the increasing online transactions and information shared across various platforms. Due to this, the risk of fraud has become a significant concern for customers as well as financial institutions. According to the Federal Trade Commission (FTC), the global e-commerce losses due to online payment fraud reached USD 41 billion in 2022. Therefore, to combat payment frauds and safeguard their financial integrity, companies are adopting fraud detection solutions.

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

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By Industry Analysis

Healthcare & Life Sciences Segment to Gain Traction due to Growing Demand for Fraud Analytics

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 register highest CAGR during the forecast period owing to the growing demand for fraud analytics and authentication solutions and services. The increased numbers of fraudulent claims such as disaster insurance fraud, break-in insurance, and life insurance fraud are projected to expand the market size.

The BFSI segment dominated the market in 2023 as fraudulent activities are surging in the BFSI sector due to digitalization. Fraudsters are developing their own digitized methods to steal customers’ identities and gain access to their personal accounts. According to a report by the Federal Trade Commission, in 2021, they received 2.8 million fraud reports from consumers, with total fraud losses amounting to around USD 5.8 billion. Therefore, the adoption of fraud detection and prevention solutions is increasing in the BFSI sector.

Government, manufacturing, media & entertainment, IT & telecom, and energy & utilities segments are projected to grow substantially. The increased implementation of fraud analytics solutions including predictive analytics, behavioral analytics, among others is expected to boost the market.


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

North America Fraud Detection and Prevention Market Size, 2023 (USD Billion)

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North America generated maximum revenue share in 2023. 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. The 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.

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Asia Pacific is expected to grow at the highest CAGR during the forecast period (2024-2032). 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 variety of providers of fraud prevention solutions.

Europe is expected to grow at a significant CAGR during the forecast period (2024-2032). 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.

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 detection and prevention solutions across diverse industries. Brazil is expected to dominate the South American market during the forecast period. The growth in South American countries is driven by the development of various IT projects.

List of Key Companies in Fraud Detection and Prevention Market

Focus of Major Companies Toward Inventive Solutions to Strengthen Competition

Fraud detection and prevention companies, including Experian Information Solutions Inc., BAE System, IBM Corporation, Uplexis, Fair Isaac Corporation, and ACI Worldwide are among the major players in the market. These players are market leaders focusing on escalating their geographical presence and strengthening their brand names in developing countries. Also, these large organizations mainly focus on collaborating and acquiring domestic players to improve their presence in the market.

List of the Key Companies Profiled:


  • December 2023 - Experian and NeuroID entered a partnership to enhance its fraud prevention solutions. The aim of the partnership is to deter fraud attacks, prevent identify thefts, and protect against AI-powered bots.

  • October 2023- Oscilar launched the industry’s first generative AI-powered platform for fraud prevention to automatically identify potential fraud patterns, conduct root cause analysis, and provide real-time risk recommendations.

  • May 2023 - Experian launched Experian’s Hunter, a fintech-focused version of industry-leading fraud prevention data network in U.S. to provide a new level of protection from fraud to businesses and consumers.

  • September 2022 - Experian launched Experian Fraud Score, a fraud protection solution that will aid organizations of all sizes in identifying fraud at the transaction and customer lifecycle stages.

  • June 2022 - Advanced Fraud Solutions (AFS) collaborated with Fiserv, a provider of payments and financial services technology, allowing Fiserv and financial institution customers to check risk-based fund availability, fraud detection, and decision procedures, aiding in preventing losses and detecting fraudulent credits before they are accepted.

  • May 2022 - Fiserv launched a fraud mitigation service that minimized fraud losses by 10 to 15% for its small and medium bank clients and credit unions. This solution incorporates the improved artificial intelligence capabilities of Fico Fraud Predictor, Global Intelligent Profiles, and Adaptive Analytics, delivering a complementary, cohesive, and holistic approach.

  • April 2021 - NICE Actimize released SURVEIL-X, an AI-driven surveillance and suitability solution for the insurance and wealth sectors. This solution was developed on a complete surveillance platform called SURVEIL-X.


An Infographic Representation of Fraud Detection and Prevention Market

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The 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 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 market in recent years.

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Report Scope and Segmentation



Study Period


Base Year


Estimated Year


Forecast Period


Historical Period



Value (USD billion)

Growth Rate

CAGR of 21.8% from 2024-2032


By Solution

  • Fraud Analytics

    • Predictive Analytics

    • Customer Analytics

    • Social Media Analytics

    • Big Data Analytics

    • Behavioral Analytics

  • Authentication

    • Single-Factor Authentication

    • Multi-Factor Authentication

  • Governance, Risk and Compliance 

By Application

  • Insurance Claims

  • Money Laundering

  • Electronic Payment

  • Others (Banking Transactions)

By Deployment

  • On-Premise

  • Cloud

By Enterprise Type

  • Large Enterprises

  • Small & Medium Enterprises (SMEs)

By Industry

  • BFSI

  • IT & Telecom

  • Retail & Consumer Packaged Goods

  • Government

  • Construction & Real Estate

  • Energy & Utilities

  • Travel & Transportation

  • Manufacturing

  • Healthcare & Life Sciences

  • Media & Entertainment

  • Others

By Region

  • North America (Solution; Application; Deployment; Enterprise Type; Industry; and Country) 

    • U.S. (By Application)

    • Canada (By Application)

  • South America (Solution; Application; Deployment; Enterprise Type; Industry; and Country)

    • Brazil (By Application)

    • Mexico (By Application)

    • Rest of South America

  • Europe (Solution; Application; Deployment; Enterprise Type; Industry; and Country)

    • U.K. (By Application)

    • Germany (By Application)

    • France (By Application)

    • Italy (By Application)

    • Spain (By Application)

    • Rest of Europe

  • Middle East & Africa (Solution; Application; Deployment; Enterprise Type; Industry; and Country)

    • GCC (By Application)

    • South Africa (By Application)

    • Rest of the Middle East & Africa

  • Asia Pacific (Solution; Application; Deployment; Enterprise Type; Industry; and Country)

    • China (By Application)

    • India (By Application)

    • Japan (By Application)

    • Southeast Asia (By Application)

    • Rest of Asia Pacific

Frequently Asked Questions

Fortune Business Insights says that the global market value stood at USD 43.97 billion in 2023.

By 2032, the market value is expected to reach USD 255.39 billion.

The market is expected to record a CAGR of 21.8% during the forecast period of 2024-2032.

Based on solution, authentication is expected to lead the global market share during the forecast period.

The growth in adoption of online applications and mobile banking services, rising number of internet users, increasing adoption of digital payment methods, and rising number of start-ups are a few of the key drivers for market growth.

IBM Corporation, ACI Worldwide, BAE Systems, Experian Information Solutions, Inc., Fair Isaac Corporation, LexisNexis and SAS Institute, Inc. are the top companies in the market.

BFSI holds the major market share.

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