Latin America Fraud Detection and Prevention Market Size, Share & Industry Analysis, By Component (Solutions and Services), By Application Area (Insurance Claims, Money Laundering, Electronic Payment, and others), ByDeployment (Cloud and On-Premise), By Enterprise Size (Large Enterprises and 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, Gaming, Manufacturing, Healthcare and Life Sciences, and Others), and Country Forecast, 2025-2034

The Latin America fraud detection and prevention market size was valued at USD 1.20 billion in 2024. The market is projected to grow from USD 1.37 billion in 2025 to USD 5.08 billion by 2034, exhibiting a CAGR of 15.60% during the forecast 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 and deal with fraud incidents. The solutions assist enterprises to detect and eliminate future occurrences of criminal activities such as scams, frauds, and other.

The growth of the market in Latin America is driven by the fact that users are shifting their focus toward e-commerce and m-commerce platforms. Thus, due to the increase in the focus on online platforms, fraudulent activities are increasing. This has led to the surging demand for fraud detection solutions.

The market is dominated by established key players, including Serasa Experian, upLexis, ClearSale, Accenture PLC, IBM Corporation, and Thales Group. These players are significantly focusing on product launches by entering into partnerships with payment providers, cloud platforms, and fintech ecosystems to strengthen their portfolios.

Impact of Generative AI

Rising Deepfake and Synthetic Identity Fraud Cases Propel Demand for FDP Solutions

The major impact of generative AI (gen AI) on the Latin America fraud detection and prevention market is the rapid escalation of deepfake and synthetic identity fraud. Gen AI tools are capable of creating hyper-realistic faces, voices, and documents, enabling fraudsters to bypass traditional identity verification and authentication systems. For instance,

• According to a survey conducted by Sumsub, an end-to-end identity verification company, shows a 700% surge in deepfake fraud attempts and a 140% rise in synthetic identity attacks from the first quarter of 2024 to the first quarter of 2025 in Brazil.

Moreover, fintechs, financial institutions, and gambling operators across the region are now facing large-scale risks where fraudsters use AI-generated personas to open new accounts, launder money, and exploit instant payment systems such as PIX.

MARKET DYNAMICS

MARKET DRIVERS

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

The rising number of start-ups in sectors such as retail and e-commerce, manufacturing, and healthcare, among others, is expected to boost Latin America fraud detection and prevention market growth. The increasing funding and investment by government agencies are advancing 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, is also encouraging small and medium businesses to adopt such solutions. As per an industry survey, Latin America’s credit card fraud is ~97% higher than in North America, and digital banking malware attacks rose 113% in H1 2024 compared to 2023.

Also, factors such as the emergence of digital payment systems, digitalization fundamentals, socio-economic environment, and others are driving the adoption of these solutions. Adoption of digital payment methods is increasing across the region. According to industry experts, the instant payment system (PIX) in Brazil has become the dominant rails, handling ~42 billion transactions in 2023. While efficient, its ubiquity makes it a top target for fraudsters.

MARKET RESTRAINTS

Increasing Incidence of Data Frauds and Limited Availability of Skilled Professionals to Hamper the Market Growth

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

The advent of advanced 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, advanced fraud tools with complex algorithms are emerging in the market, making it difficult for traditional solutions to track and monitor with limited availability of skilled professionals across the region.

MARKET OPPORTUNITIES

Untapped Market Potential in Latin America to Create Lucrative Growth Opportunities

Latin America offers substantial growth opportunities for fraud detection and prevention solution providers. The rising awareness of fraud risks and the need for high security measures present a dynamic market landscape for innovative solutions. Latin America leads the world in credit card fraud, with rates 97% higher than North America and 222% higher than the Asia Pacific region. The region also experiences the highest revenue loss to fraud, at 20%.

According to the World Bank, SMEs constitute over 90% of all businesses in Latin America, yet only a smaller portion have implemented formal fraud detection mechanisms. This lack of preparedness leaves them vulnerable to financial losses. Thus, the untapped market potential in Latin America's fraud detection and prevention sector offers substantial growth opportunities for solution providers.

LATIN AMERICA FRAUD DETECTION AND PREVENTION MARKET TRENDS

Adoption of Advanced Technologies including AI, ML, and Biometrics to Aid the Market Growth

Financial institutions in Latin America are significantly leveraging artificial intelligence (AI) and machine learning (ML) technologies to improve fraud detection capabilities. These technologies enable real-time analysis of transaction data, identifying patterns and anomalies indicative of fraudulent activities.

Additionally, biometric authentication methods, such as fingerprint scanning and facial recognition, are being adopted to enhance security measures.

Further, the governments of Brazil and Mexico are inspiring start-ups and micro, small, and medium enterprises (MSMEs) to adopt fraud detection and prevention solutions by investing in different innovative start-up projects.

SEGMENTATION ANALYSIS

By Component

Rising Demand for Advanced Security Solutions to Aid the Segment Growth

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

The solutions are divided into sub-segments including fraud analytics, authentication and governance, risk, and compliance. Moreover, the fraud segment is divided into sub-segments such as predictive analytics, customer analytics, social media analytics, big data analytics, and behavioral analytics.

The solution segment captured the largest Latin America fraud detection and prevention market share in 2024. This is owing to the increasing adoption of advanced security solutions across industries such as BFSI, manufacturing, healthcare, IT & telecom, oil & gas, and others. Additionally, a rise in digital banking transactions fuels the adoption of FDP solutions across the region. For instance,

• The widespread adoption of PIX, Brazil’s instant payment system, recorded over USD 1.5 trillion in monthly transactions in 2023, highlighting the need for robust fraud prevention systems.

The services segment is projected to grow at the highest CAGR during the forecast period. This is due to the increasing demand for managed and professional services by small and medium enterprises.

By Application Area

Increasing Adoption of Online Digital Payment Leads to Electronic Payment Segment Growth

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

The electronic payment segment registered a largest market share in 2024. The growth is attributed to an increasing adoption of online payment, mobile banking, mobile wallet transactions, USSD/STK, and SMS. The electronic payment sector leads the Latin America Fraud Detection and Prevention market, driven by the widespread adoption of digital payment systems such as PIX.

The insurance claims segment is expected to grow at a highest CAGR during the forecast period, owing to the increasing number of insurance companies and their offerings.

By Deployment

Increasing Adoption of Cloud Security Solutions to Boost Segment Growth

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

The cloud segment captured the largest market share in 2024 and is expected to grow at the highest CAGR during the forecast period. This growth is mainly due to the paradigm shift of end-users toward cloud security solutions from traditional on-premise security solutions. In addition, organizations across the country are migrating to cloud-based fraud detection systems to benefit from scalability, cost-effectiveness, and real-time monitoring capabilities.

The on-premise segment is predicted to rise with steady growth owing to consistent usage of fraud detection and prevention solutions and services across the government and education sectors.

By Enterprise Size

Growing Adoption of Security Solutions across Large Enterprises to Augment the Segment Growth

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

The large enterprise segment held the dominating position in 2024, owing to the surging demand for consultancy and managed services across financial institutions. Also, large enterprises manage vast networks of transactions and sensitive data across multiple channels, making them attractive targets for fraudsters. Also, stringent regulations compel large organizations in the region to implement robust fraud detection systems.

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

By Vertical

Rising Fraud Risks Drive Adoption of Advanced Analytics in the BFSI Sector

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

The BFSI sector captured the largest share of the market in 2024. The growing adoption of mobile payments, digital banking services, and online financial platforms has increased the volume of transactions, making the sector more vulnerable to various types of frauds, including payment fraud, identity theft, and account takeovers. These factors are fueling the adoption of advanced fraud analytics tools, such as predictive analytics, social media analytics, among others, in the BFSI sector. For instance,

• In 2023, digital fraud losses in Brazil rose by nearly 17%, prompting banks to implement advanced fraud detection measures.

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 patients’ personal information.

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Latin America Fraud Detection and Prevention Market Country Outlook

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

Brazil

Brazil held the dominant share in 2023, valued at USD 0.51 billion, and also took the leading share in 2024 with USD 0.58 billion. This growth is mainly due 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 as one of the key market drivers in Brazil.

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Mexico

Mexico is projected to grow with the highest 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 its functioning is expected to significantly accelerate the adoption of FDP solutions in Mexico. For instance,

• In December 2024, Inter.mx collaborated with Stripe to launch a freemium insurance model in Mexico, integrating fraud detection using Stripe Radar to ensure secure transactions.

Also, the demand for secure payment solutions is rising, as 79% of online purchases in Mexico are being mobile-dominated.

COMPETITIVE LANDSCAPE

Key Industry Players

Wide Range of Product Offerings, coupled with Strong Geographic Presence of Key Companies Supported their Leading Position

The Latin America fraud detection and prevention market shows a concentrated structure with numerous small-to-mid-size companies actively operating across the region. These players are involved in product innovation, strategic partnerships, and geographic expansion.

Serasa Experian, ClearSale, Accenture PLC, IBM Corporation, Amdocs, and Thales Group are some of the dominant market players actively creating advanced solutions to cater customer demands. Additionally, they focus on collaboration, acquisitions, and partnerships with regional players to maintain dominance across regions.

Apart from this, other prominent players in the market include upLexis, idwall, Unico ID, Incognia, HS Prevent, and FullFace Biometric Solutions. These companies are undertaking various strategic initiatives, such as investments in R&D and geographic expansion, to strengthen their business growth.

LONG LIST OF KEY COMPANIES STUDIED

• Serasa Experian (Brazil)
• upLexis (Brazil)
• ClearSale (Experian) (Brazil)
• Unico ID (Brazil)
• HS Prevent (Brazil)
• idwall (Brazil)
• FullFace Biometric Solutions (Brazil)
• Accenture PLC (Ireland)
• Thales Group (France)
• IBM Corporation (U.S.)
• Amdocs (U.S.)
• Incognia (U.S.)
• Koin (Brazil)
• Shipay (Brazil)
• Naapi (Brazil)
• Data Rudder (Brazil)
• iDenfy (Lithuania)
• Signifyd (U.S.)
• Riskified (Israel)
• Recorded Future (U.S.)

…and more

KEY INDUSTRY DEVELOPMENTS

• January 2025 – Brazilian firm Grupo FS plans to invest USD 1.8 billion to establish three data centers in Brazil. This move is driven by factors such as political stability, renewable energy availability, and rising local demand for secure digital infrastructure.
• December 2024 - Unico ID secured USD 25 million in a Series B funding round. The investment will be utilized to expand its biometric fraud prevention solutions across Latin America and enhance its identity verification technologies.
• October 2024 – Experian agreed to acquire Brazil’s ClearSale, a fraud management firm, for USD 350 million. The move is aimed at extending its identity and fraud (ID&F) suite, particularly in transaction fraud detection, complementing its existing strengths in account opening and takeover prevention.
• October 2024 – Serasa Experian, part of Experian, launched Valida Bets, a compliance-focused fraud detection platform for the Brazilian gambling sector. The platform includes KYC, facial biometrics, device tampering checks, and geolocation services.
• February 2023 – Accenture acquired Morphus, a digital threat intelligence services provider based in Brazil. Through this acquisition, the company aims to expand its footprint in Brazil and Latin America.

REPORT COVERAGE

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 market insights offered in the report are the adoption trends of fraud detection and prevention 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.

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Report Scope and Segmentation