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Latin America Fraud Detection and Prevention Market Size, Share & COVID-19 Impact Analysis, By Component (Solutions and Services), By Application Area (Insurance Claims, Money Laundering), By Deployment (Cloud and On-Premise), By Enterprise Size (Large Enterprises and SMEs), By Vertical (BFSI, IT and Telecom, Retail and Consumer Packaged Goods, Government, Construction and Real Estate, Energy and Utilities), and Geographical Forecast, 2021-2028

Last Updated: June 24, 2024 | Format: PDF | Report ID: FBI105129



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The Latin America fraud detection and prevention market size was USD 729.4 million in 2020. The impact of COVID-19 in Latin America has been exceptional and astounding, with fraud detection and prevention (FDP) solutions witnessing a diverse demand shock across the region during the pandemic. Based on our research, the global market exhibited a substantial growth of 12.0% in 2020, as compared to the average year-on-year growth during 2017-2019. The market is projected to reach from USD 821.6 million in 2021 to USD 2,945.3 million in 2028 at a CAGR of 20.0% during the 2021-2028 period.

Fraud detection and prevention solutions are a set of software and services deployed by enterprises in their commercial units to leverage advanced security solutions to deal with fraud incidents. The solutions assist enterprises to detect and eliminate upcoming occurrences of criminal activities such as scams, frauds, etc.

The growth of the market in Latin America is driven by the fact that users are shifting their focus towards e-commerce and m-commerce platforms. Owing to the increase in the shift towards online platforms, fraudulent activities are increasing. For instance, in April 2020, in Brazil, around 850,000 victims were targeted by an e-commerce phishing campaign known as the “three-question quiz campaign”. The victims were scammed by questioning their personal information, bank details and convincing them to install unknown Adware on their smart devices. Simultaneously, this has led to the surging demand for fraud detection solutions.

Key companies in the market are focused on completing various business strategies to expand their product offerings. For instance, in April 2019, NICE Actimize launched a CDD-X fraud detection solution. The solution is based on advanced analytics and AI platforms. This solution is used to execute the KYC/CDD programs.

COVID-19 Impact

Rising Insurance Claims amid COVID-19 to Propel Demand across Healthcare Sector

The novel coronavirus pandemic is impacting the Latin American economy. Observing several preliminary indicators from the first quarter of 2020, a minor decline is observed in the overall demand for fraud prevention across various applications. Also, due to COVID 19, various business plans, government strategies, and projected investment, and others are on hold owing to lack of operability. The stance for the fraud detection and prevention market size in the second half of the year 2020 and beyond, remains uncertain.

In Brazil, across healthcare sectors, individuals are processing their insurance claims for medical expenses for COVID-19. This rise in the number of online insurance claims has offered opportunities for fraudsters to develop fraud cases to extract insurance claims from hospitals and governments. This will drive the adoption of fraud prevention solutions across healthcare and government sectors. Also, according to MasterCard Incorporated, the study reveals that maximum users are adopting contactless payment modes based on fraud prevention solutions during this pandemic situation.

The overall market in Latin America is expected to develop with a considerable CAGR during the period (2021-2028). The significant growth in the market is owing to the rising demand for online retail sales in countries such as Brazil, Mexico, Peru, and other countries. In Brazil, Mexico, and other countries, while shopping online, users generally prefer secured payment methods for completing payment to ensure security from online payment fraud and scams.


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Emerging Technologies Such as Cloud, and IoT to Aid the Adoption Rate

The increasing adoption of cloud-based fraud detection services is expected to bode well for the growth of the market. Cloud adoption for fraud detection and prevention is considered as one of the key trends, as it provides access through the internet and has the robust processing power and storage space while allowing quick tracing of online cyber-attacks.

Other key trend driving the demand for fraud prevention solutions is the increasing implementation of the internet of things (IoT) devices. With the implementation of fraud prevention solutions in the IoT analytics platform and in-build devices, it is becoming a significant part of the organization and industrial operations. According to the Latin America System of Mobile Communication (GSMA), the count for IoT connections is expected to around 23 million by 2020.

Report Scope and Segmentation

Latin America Fraud Detection and Prevention Market Report Scope

Report Coverage


Forecast Period

2021 to 2028

Forecast Period 2021 to 2028 CAGR


2028 Value Projection

USD 2945.3 Million

Base Year


Market Size in 2020

USD 729.4 Million

Historical Data for

2017 to 2019

No. of Pages


Tables, Charts & Figures


Segments covered

Component, Application Area, Deployment, Enterprise Size, Vertical and Geography

Growth Drivers

Users are shifting their focus towards e-commerce and m-commerce platforms

Owing to the increase in the shift towards online platforms, fraudulent activities are increasing

Rising Insurance Claims amid COVID-19 to Propel Demand across Healthcare Sector

Emerging Startups Sector and Rising Adoption of Digital Payment Platform to Drive Market

Pitfalls & Challenges

Increasing Incidence of Data Frauds and Fewer Availability of Skilled Professionals to Hamper Growth



Emerging Startups Sector and Rising Adoption of Digital Payment Platform to Drive Market

In Latin America, the rising number of start-ups in sectors such as retail and ecommerce, manufacturing, healthcare, among others, are expected to boost the demand for fraud detection solutions. The increasing fund and investment by government agencies are boosting startups to adopt solutions to secure their business channel from online cyber-attacks. The growing number of online cyber-attacks, false websites, payment scams and others, in countries such as Brazil and Mexico, are also encouraging small and medium businesses to adopt solutions. For instance, in January 2021, in Brazil, PSafe, a provider for security, and privacy apps, observed out that confidential data of around 220 million Brazilian residents was disclosed over the official website of Brazil's Ministry of Health.

Also, factors such as the emergence of digital payment systems, digitalization fundamentals, socio-economic environment, and others, are driving the adoption of solutions. Adoption of digital payment methods are increasing across the region. According to ACI Worldwide, in Brazil, around 43% of the population are dependent on electronic payment including digital payment and other modes.


Increasing Incidence of Data Frauds and Fewer Availability of Skilled Professionals to Hamper Growth  

Companies store their crucial data and files along with customers and client data on the servers. Thus, to secure and protect the data, detecting fraud is very essential for companies. However, the increasing advanced cyber-attacks, fraudulent activities, and new unidentified threats are likely to challenge the traditional fraud detection solutions.

The advent of advanced types of frauds with higher attacking intensity is expected to hinder the market growth during the forecast period. With the advent of core technologies such as cloud, big data, and other technologies, advanced frauds tools with the complex algorithms are emerging in the market that is quite difficult for traditional solutions to track and monitor.

Also, when an enterprise implements a cloud solution managed by third-party, dependences get formed with the cloud service provider (CSP). The activities of the CSPs and cloud users can impact the enterprise in numerous ways. Few of the encounters confronted by the enterprise include complexity in deployment of enterprise risk management programs, high security and agreement concerns, lack of transparency, high-value cyber-attack targets, the threat of data leak, and others.


By Component Analysis

Rising Demand from Advanced Security Solutions, to Aid the Latin America Fraud Detection and Prevention Market Growth

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

The solutions are divided into sub-segments as fraud analytics, authentication and governance, risk, and compliance. Moreover, the fraud segment is divided into sub-segments as predictive analytics, customer analytics, social media analytics, big data analytics, and behavioral analytics. The growth of the solutions segment is owing to the increasing adoption of advanced security solutions across industries such as BFSI, manufacturing, healthcare, IT & telecom, oil & gas, and others.

The services segment is projected to develop at a significant growth rate during the forecast period. This is owing to the increasing demand for managed and professional services by small and medium enterprises. Also, the service segment is divided into professional services and managed services.

By Application Area Analysis

Increasing Adoption of Online Digital Payment, Aid to Electronic Payment Market Growth

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

The electronic payment segment is expected to register the largest market share during the forecast period. The growth is attributed to the increasing adoption of online payment, mobile banking, mobile wallet transactions, USSD/STK, and SMS.

The insurance claims segment is expected to grow significantly owing to the increasing number of insurance companies and their offerings.

By Deployment Analysis

Increasing Adoption of Cloud Security Solutions to Boost Market

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

The cloud segment is expected to grow at the highest CAGR during the forecast period. The growth is mainly owing to the paradigm shift of end-users towards cloud security solutions from traditional on premise security solutions.

The on premise segment is predicted to rise with steady growth owing to consistent usage of FDP solutions and services across government and education sectors.

By Enterprise Size Analysis

Growing Adoption of Security Solutions across SMEs to Boost the Market

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

The small & medium enterprises (SMES) segment is expected to grow with an exceptional CAGR during the forecast period. The growth is owing to the rising demand for global FDP market solutions across SMEs and the rising number of startups in countries such as Brazil, Mexico, Argentina, and others.

The large enterprise segment is expected to grow at a significant pace owing to the surging demand for consultancy and managed services across financial institutions.

By Vertical Analysis

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Increasing Adoption of Fraud Analytics and Authentication Solutions across Healthcare and Government Sector to Aid Growth

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

The healthcare & life sciences segment is anticipated to experience the highest growth rate during the forecast period. This is owing to the high demand for fraud analytics and authentication solutions in clinics and hospitals to secure the patient’s personal information.

The other end-user industries such as BFSI, government, IT & telecom, energy & utilities, media & entertainment, and manufacturing, are projected to observe a considerable growth rate. The rising adoption of advanced fraud analytics tools such as predictive analytics, social media analytics, among others is anticipated to boost segmental growth.


Based on the geography, the market is divided into Brazil, Mexico, and Rest of Latin America.

Brazil is expected to dominate the Latin America fraud detection and prevention market during the forecast period. The growth in the country is mainly owing to the development of various IT projects. Moreover, the increasing demand for fraud solutions to detect and eliminate cyber-attacks during online payments and transactions is expected to favor market growth. The rising adoption of online payment applications and mobile banking services is considered one of the key market drivers for the growth of the market in Brazil.

Mexico is predictable to grow with the significant growth rate during the forecast period. The government in Mexico is highly adopting various digitalization strategies to robust online security solutions and services. Also, the growing implementation of several strategies and guidelines in the public domain to establish a robust, secure payment platform based on advanced fraud detection solutions for the functioning. For instance, in October 2019, Bank of America launched a mobile banking application based on fraud detection solutions, with approximately 29 million mobile users. The application is enabled with Erica, an artificial intelligence (AI) driven virtual financial assistant. This application is developed to assist their users to track and manage their financials and investments.


Industry Players Focus on Developing Advanced Fraud Detection and Prevention Solutions for End-user Industries

Major vendors in Latin America are focusing on upgrading their existing products and service portfolios. Top market players present in the market are IBM Corporation, Neoway, Accenture Plc, Tata Communication Ltd., Amdocs, and Experian. These players are focusing on offering advanced fraud detection and prevention to their end-users. Moreover, the large corporations are primarily focusing on product launches and updating their existing products to strengthen their presence in Latin America.

September 2019 – Temenos AG launched the Temenos Peer Group Identifier solution, based on an advanced AI platform. The solution is a financial profiling tool used for augmenting financial crime detection on uppermost risk trades.


  • IBM Corporation (New York, United States)

  • Uplexis (São Paulo, Brazil)

  • Experian Information Solutions, Inc. (São Paulo, Brazil’s)

  • Accenture PLC (Dublin, Ireland)

  • Tata Communications (Maharashtra, India)

  • Clearsale LLC (Florida, United States)

  • Neoway (Sao Paulo, Brazil’s)

  • Konduto (Sao Paulo, Brazil’s)

  • Inovamind (Sao Paulo, Brazil’s)

  • Único (Sao Paulo, Brazil’s)

  • Cred Defense (Bebedouro, São Paulo)

  • HS Prevent (Sao Paulo, Brazil’s)

  • BrScan Tecnologia (Brasilia, Distrito Federal)

  • IDWALL TECNOLOGIA LTDA (Sao Paulo, Brazil’s)

  • Gemalto - Thales Group (Paris, France)

  • Boa Vista Serviços

  • Amdocs (Missouri, United States)

  • Oiti Technologies (Sao Paulo, Brazil’s)

  • Fullface Biometric Solutions (Sao Paulo, Brazil’s)

  • Incognia (California, United States)


  • September 2020 - ACI Worldwide, Inc. announced its collaboration with Nextpayway, a leading provider of payment platform solutions for the gaming industry. The collaboration is aimed at the development of advanced ACI’s UP e-commerce payments offerings to deliver next-generation payments and fraud prevention services.

  • May 2020 – TransUnion LLC., launched a subdivision known as Latin America fraud and identity solution group. The solution group was launched to combat fraud by aiming customers from their regular risk profiles.


An Infographic Representation of Latin America Fraud Detection and Prevention Market

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

The Latin America fraud detection and prevention market report offers qualitative and quantitative insights on the industry and a detailed analysis of the size & growth rate for all possible segments in the market. Along with this, the report provides an elaborative study of market dynamics, emerging trends, opportunities, and competitive landscape. Key insights offered in the report are the adoption trends of fraud detection and prevention (FDP) solutions, recent industry developments, such as partnerships, mergers & acquisitions, Porter’s Five-Force analysis, consolidated SWOT analysis of key players, business strategies of leading market players, macro and micro-economic indicators, and key industry trends.


By Component

  • Solutions

    • Predictive Analytics

    • Customer Analytics

    • Social Media Analytics

    • Big Data Analytics

    • Behavioral Analytics

    • Single-Factor Authentication

    • Multi-Factor Authentication

    • Fraud Analytics

    • Authentication

    • Governance, Risk, and Compliance

  • Services

    • Consulting

    • Training and Education

    • Support and Maintenance

    • Professional Services

    • Managed Services

By Application Area

  • Insurance claims

  • Money laundering

  • Electronic payment

  • Others (Banking transactions, etc.)

By Deployment

  • On-Premise

  • Cloud

By Enterprise Size

  • Large Enterprises

  • Small & Medium Enterprises (SMES)

By Vertical

  • 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

  • Others

By Geography

  • Brazil (By Component; Application Area; Deployment; Enterprise Size; Vertical)

  • Mexico (Component; Application Area; Deployment; Enterprise Size; Vertical)

  • Rest of Latin America

Frequently Asked Questions

Fortune Business Insights says that the market value stood at USD 729.4 million in 2020.

By 2028, the market size is expected to reach USD 2,945.3 million.

The market is expected to grow at an astonishing CAGR of 20.0% during the forecast period (2021-2028).

Based on the vertical segment, the BFSI segment is expected to lead the market during the forecast period.

The increasing online & mobile banking services and emerging start-ups across the e-commerce sector, coupled with the rising adoption of digital payment methods, will drive the market’s growth.

IBM Corporation, Neoway, Accenture Plc, Tata Communication Ltd., Amdocs, and Experian Information Solutions, Inc., are among the top players in the market.

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