Published: December 2019 | Report Code: IM11783 | Available Format: PDF | Pages: 226
The fraud detection and prevention market revenue stood at $20,614.4 million in 2018, and it is expected to reach $47,903.1 million by 2024, witnessing a CAGR of 15.1% during 2019–2024. The major factors driving this growth include the rising usage of machine learning (ML) and artificial intelligence (AI) for reducing fraudulent activities, surging frequency of phone scamming against the geriatric population, and soaring need to protect the online banking and insurance sector.
The Asia-Pacific (APAC) market for fraud detection and prevention solutions will exhibit the fastest growth in the coming years due to the increasing presence of large enterprises, improving economic conditions of major countries, and expanding information technology (IT) industry in the region. India, China, Singapore, and South Korea are observing a spike in the number of large enterprises as they are the preferred destinations for IT outsourcing. This has made the region a potential target for fraudsters who aim at stealing sensitive information.
The usage of the hybrid analytical approach is the most-prominent trend in the industry. This approach integrates several aspects of fraud detection into one technological solution. The integrated applications swiftly connect each aspect of a fraud incident and evaluate each strand individually as a potentially larger threat. Fraud detection and prevention market players, such as TransUnion LLC and SAS Institute Inc., offer the hybrid analytical approach to help customers counter frauds. Such a solution offers a wholesome enterprise view of fraudulent behavior and aids in prepayment fraud detection and prevention.
The spurring concern about mobile frauds plays a vital role in facilitating the fraud detection and prevention industry growth. The number of online transactions through mobile devices is exceeding that of transactions through desktop devices, thus resulting in the increasing cases of fraudulent activities. In 2018, nearly 30% of all the vulnerable transactions were carried out through mobile devices, and this percentage jumped to 49% by early 2019. Cybercriminals are widely using mobile emulators, which operate on desktops and mimic various Android and iOS devices.
Another growth driver for this market is the surging usage of AI and ML for minimizing fraudulent activities. ML is being leveraged to identify fraud attack patterns and reduce financial losses. AI-enabled technologies are being integrated with ML and big data to enable enterprises to reduce the risk of known and unknown frauds and improve their operational workflow.
The software category generated the higher revenue within the offering segment in 2018, and it is expected to continue its dominance on the fraud detection and prevention market in the coming years. This can be owed to the mounting demand for advanced solutions to eliminate fraudulent activities.
The internal category, under the type segment, held the larger market share in 2018, and it is projected to record the faster growth in the foreseeable future. This can be ascribed to the rising frequency of internal frauds within enterprises, especially in larger companies where the business complexities are huge and the scope for cybercriminals to target them is high.
The digital ad frauds category, within the threat type segment, will demonstrate the fastest growth in the near future. The rising frequency of such frauds in APAC and Latin America (LATAM) would drive the growth of this category.
The North American market for fraud detection and prevention solutions held the largest share in 2018 due to the increasing adoption of the cloud technology by business firms for several operations. This is resulting in an increase in the number of fraudulent activities. Moreover, the robust research and development (R&D) for the integration of the internet of things (IoT) technology in fraud detection and prevention systems will facilitate the market growth in the region.
The APAC fraud detection and prevention market is expected to showcase the fastest growth between 2019 and 2024. Businesses in the region have started accepting biometrics and advanced analysis methods to counter fraudulent activities. The increasing implementation of improved AI, facial recognition, and voice recognition solutions in APAC is aimed at securing the customer data. Among APAC countries, China generates the highest revenue for the market players presently.
The fraud detection and prevention market has a fragmented structure, with the presence of a number of multinational and regional market players. The majority of the market share, however, is held by five companies, namely, IBM Corporation, RELX Group, Experian PLC, Fiserv Inc., and Nice Systems Ltd. Additionally, the market is witnessing a perpetual change in technological landscape with the rise in innovations and introduction to new fraud types. This is further leading to the accelerating rate of new entrants in the market.
In recent years, major players in the global fraud detection and prevention market have taken several strategic measures, such as mergers & acquisitions, product launches, and partnerships, to gain a competitive edge in the industry. For instance, in October 2019, NICE Systems Ltd. announced the addition of AutoDiscovery capabilities to its analytics offerings. These capabilities would provide organizations with cross-channel insights regarding customer pain-points, by using AI-based ML. NICE Nexidia's AutoDiscovery capabilities include automatic topic identification, anomaly detection, and query coverage analysis.
Further, in January 2019, Fair Isaac Corporation (FICO) announced partnership with Conductor, a Brazilian company specializing in electronic payments, to prevent Brazilian payment cards from fraudulent risks. Under this partnership, FICO’s Falcon Platform would safeguard credit cards processed by Conductor.
|By Deployment Type||
|By Enterprise Size||
|By Threat Type||
|Countries Covered||U.S., Canada, U.K., Germany, France, Spain, Russia, Sweden, Italy, Netherlands, China, India, Japan, South Korea, Singapore, Indonesia, Mexico, Brazil, Argentina, Chile, Colombia, U.A.E., Saudi Arabia, South Africa, Egypt, Turkey|
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