Fraud detection and prevention refers to the process of identifying, analyzing and mitigating fraudulent activities within an organization or system. It involves the use of various techniques, technologies and strategies to detect and prevent fraudulent behavior before it causes financial losses or damages. This includes analyzing patterns and anomalies in data, implementing security controls and protocols and conducting investigations. The goal of fraud detection and prevention is to safeguard assets, protect against financial crimes, maintain regulatory compliance and preserve the integrity and trustworthiness of operations.
The fraud detection and prevention market consist of revenues earned by entities (organizations, sole traders and partnerships) by providing services related to risk assessment, data analysis, monitoring and surveillance of fraudulent activities, fraud alerts and notifications, transaction monitoring and others.
The global fraud detection and prevention market was valued at $19,819.5 million in 2018 which grew till 2023 at a compound annual growth rate (CAGR) of more than 16.0%.
Rising Adoption Of Cloud-Based Solutions
The rising adoption of cloud-based solutions fueled growth in the fraud detection and prevention market during the historic period. Cloud-based solutions refer to software, platforms and infrastructure services hosted and accessed over the Internet, rather than installed on local computers or servers. The adoption of cloud-based solutions is rising, due to their scalability, flexibility, accessibility and cost-effectiveness for businesses across various industries. The increased adoption of cloud-based solutions in fraud detection and prevention offers a scalable and flexible infrastructure for real-time monitoring and analysis of diverse data sources, enhancing overall effectiveness in detecting and mitigating fraudulent activities. For instance, in December 2023, according to Eurostat, a Luxembourg-based statistical office of the European Union (EU), 45.2% of businesses within the EU acquired cloud computing services in 2023, primarily for tasks such as hosting email systems, storing electronic files and utilizing office software.
Real-time Risk Management Solutions Empowering Businesses
Fraud detection and prevention companies are developing real-time risk management solutions to sustain their position in the market. Real-time risk management solutions utilize advanced algorithms and data analytics to continuously monitor and assess potential risks across various business operations, enabling proactive identification and mitigation of threats to enhance overall security and resilience. For instance, in March 2024, Cashfree Payments, an India-based payments and banking technology company, launched a real-time risk management solution, called RiskShield. This tool is designed to enhance security measures for merchants, enabling them to combat fraudulent transactions effectively. RiskShield aims to reduce fraudulent activities by up to 40%, providing merchants with a robust defense mechanism against payment fraud.
The global fraud detection and prevention market is fragmented, with a large number of small players operating in the market. The top ten competitors in the market made up to 9.69% of the total market in 2022.
Fraud Detection And Prevention Global Market Opportunities And Strategies To 2033 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global fraud detection and prevention market as it emerges from the COVID-19 shut down.
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Where is the largest and fastest-growing market for fraud detection and prevention? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The fraud detection and prevention market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider fraud detection and prevention market; and compares it with other markets.
The report covers the following chapters
- Introduction and Market Characteristics- Brief introduction to the segmentations covered in the market, definitions and explanations about the segment by fraud type, by solution, by deployment mode, by application and by end-user.
- Key Trends- Highlights the major trends shaping the global market. This section also highlights likely future developments in the market.
- Macro-Economic Scenario- The report provides an analysis of the impact of the COVID-19 pandemic, impact of the Russia-Ukraine war and impact of rising inflation on global and regional markets, providing strategic insights for businesses in the fraud detection and prevention market.
- Global Market Size And Growth- Global historic (2018-2023) and forecast (2023-2028, 2033F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods.
- Regional And Country Analysis- Historic (2018-2023) and forecast (2023-2028, 2033F) market values and growth and market share comparison by region and country.
- Market Segmentation- Contains the market values (2018-2023) (2023-2028, 2033F) and analysis for each segment by fraud type, by solution, by deployment mode, by application and by end-user in the market. Historic (2018-2023) and forecast (2023-2028) and (2028-2033) market values and growth and market share comparison by region market.
- Regional Market Size and Growth- Regional market size (2023), historic (2018-2023) and forecast (2023-2028, 2033F) market values and growth and market share comparison of countries within the region. This report includes information on all the regions Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa and major countries within each region.
- Competitive Landscape- Details on the competitive landscape of the market, estimated market shares and company profiles of the leading players.
- Competitive Benchmarking- Briefs on the financials comparison between major players in the market.
- Competitive Dashboard- Briefs on competitive dashboard of major players.
- Key Mergers and Acquisitions- Information on recent mergers and acquisitions in the market is covered in the report. This section gives key financial details of mergers and acquisitions which have shaped the market in recent years.
- Market Opportunities And Strategies- Describes market opportunities and strategies based on findings of the research, with information on growth opportunities across countries, segments and strategies to be followed in those markets.
- Conclusions And Recommendations- This section includes recommendations for fraud detection and prevention providers in terms of product/service offerings geographic expansion, marketing strategies and target groups.
- Appendix- This section includes details on the NAICS codes covered, abbreviations and currencies codes used in this report.
Markets Covered:
- 1) By Fraud Type: Check Fraud; Identity Fraud; Internet /Online Fraud; Investment Fraud; Payment Frauds; Insurance Fraud; Other Fraud Types
- 2) By Application: Insurance Claims; Money Laundering; Electronic Payment; Other Applications
- 3) By End-User: Small and Medium Enterprises (SMEs); Large Enterprises
- 4) By Deployment Mode: Cloud; On-Premise
- 5) By Solution: Fraud Analytics; Authentication; Reporting; Visualization; Other Solutions
- Companies Mentioned: IBM Corporation; Fiserv Inc.; NICE Ltd; Fidelity National Information Services, Inc; Experian PLC
- Countries: China; Australia; India; Indonesia; Japan; South Korea; USA; Canada; Brazil; France; Germany; Italy; Spain; UK; Russia
- Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
- Time-series: Five years historic and ten years forecast.
- Data: Ratios of market size and growth to related markets; GDP proportions; expenditure per capita; fraud detection and prevention indicators comparison.
- Data segmentations: country and regional historic and forecast data; market share of competitors; market segments.
- Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.