Fraud Detection and Prevention Market Size & Share 2023 to 2032
Market Size by Fraud (External, Internal), by Component (Solution, Service), by Application (Money Laundering, Credit and Debit Fraud, Mobile Fraud, Identity Threat, Electronic Fraud), by End Use & Forecast.
Report ID: GMI1775
|
Published Date: December 2022
|
Report Format: PDF
Download Free PDF
Authors:
Preeti Wadhwani, Aishvarya Ambekar
Fraud Detection and Prevention Market Size
Fraud Detection and Prevention Market size valued at USD 30 billion in 2022 and is set to grow at over 25% CAGR from 2023 to 2032. Growing preference for electronic & digital payment methods to support the market growth.
The short transaction period leading to a booming number of digital channels and payment methods is increasing the complexity of the payment chain, thereby boosting the demand for fraud prevention and detection services and solutions. Stringent government regulations regarding noncompliance with FDP standards to mitigate money laundering and other cybercrimes are also likely to enhance business revenue. Furthermore, the increasing use of AI and ML in the BFSI sector to help prevent fraud is projected to augment the demand for FDP services.
Lack of availability of skilled professionals may limit business growth
There is a growing demand for skilled individuals who can keep up with the changes and improvements in technology since the online threat environment is constantly evolving and attacks are becoming more and more sophisticated in their threat vectors, which is hampering the fraud detection and prevention market development.
According to several surveys, there is a huge talent gap between the open cybersecurity employment positions and the availability of a skilled workforce who can fill them. However, businesses are taking steps to educate their employees with specialized training opportunities and courses, as well as the integration of advanced technologies such as AI and ML, which is foreseen to be lucrative for product penetration.
Fraud Detection and Prevention Market Analysis
The internal fraud segment will exceed USD 130 billion by 2032, on account of the increasing deployment of fraud management solutions by financial institutions to prevent the rising number of internal frauds and cybercrimes in FIs globally. Formal internal fraud management systems based on independent checks and separation of duties are critical in preventing and monitoring employee collusions and internal frauds.
Europe fraud detection and prevention market held approximately 27.5% of the revenue share in 2022, due to an increase in cybercrimes and frauds resulting from growing consumer preference for online shopping, the proliferation of digital payment methods, and limited opportunities for customer verification brought on by cross-border trade. Consequently, the growing number of strict government restrictions for data privacy and identity protection are slated to influence regional development.
The fraud detection and prevention market from solution segment is expected to exhibit about 24% growth rate through 2032. The increase in the number of security breaches, online frauds, and cyber-attacks across various industrial settings is raising the deployment of fraud detection solutions, which is a major factor driving the market revenue.
The GRC segment accounted for USD 2.5 billion revenue in 2022, as a result of an increasing number of businesses adopting the GRC to lower occupational dishonesty, promote integrity, and accomplish specific goals within regulatory compliance frameworks.
The money laundering segment will acquire 16.5% of the fraud detection and prevention market share by 2032, attributed to rising cases of money laundering to avoid tax payments and support terrorist activities have increased the adoption of risk management solutions across financial institutions to monitor high-value transactions, conduct stringent customer verification processes, and provide predictive analysis on risky customers to prevent money laundering.
The education sector is poised to reach USD 8.5 billion by 2032. This sector is particularly susceptible to internal fraud due to a lack of internal controls, unclear reporting systems, a lack of management evaluations, and an inadequate number of employees to monitor fraud. Many educational institutions are employing FDP services to curb these incidences.
Fraud Detection and Prevention Market Share
Major players involved in the fraud detection and prevention market are
These companies are implementing numerous tactics, such as portfolio diversification, new product development, and mergers and acquisitions, to expand their business.
Impact of COVID-19 Pandemic
The onset of COVID-19 escalated the cybercrime rates owing to the explosive demand of online shopping, and growing acceptance of flexible remote work arrangements. Businesses are investing in advanced cybersecurity and fraud prevention systems and solutions as corporate executives have begun to focus on identifying and tackling potential security breaches. Moreover, the growing integration of AI technology to evaluate the risk of online transactions and aid businesses in automating and mitigating fraud has presented massive growth prospects for industry participants.
This fraud detection and prevention (FDP) market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2032, for the following segments:
Click here to Buy Section of this Report
Market, By Component
Market, By Fraud
Market, By Application
Market, By End-use
The above information has been provided for the following regions and countries:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
At GMI, our research methodology is built on a foundation of human expertise, rigorous validation, and complete transparency. Every insight, trend analysis, and forecast in our reports is developed by experienced analysts who understand the nuances of your market.
Our approach integrates extensive primary research through direct engagement with industry participants and experts, complemented by comprehensive secondary research from verified global sources. We apply quantified impact analysis to deliver dependable forecasts, while maintaining complete traceability from original data sources to final insights.
2. Primary research
Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.
5. Forecast model & key assumptions
Every forecast includes explicit documentation of:
✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
6. Validation & quality assurance
The final stages involve human validation, where domain experts manually review filtered data to identify nuances and contextual errors that automated systems might miss. This expert review adds a critical layer of quality assurance, ensuring data aligns with research objectives and domain-specific standards.
Our triple-layer validation process ensures maximum data reliability:
✓ Statistical Validation
✓ Expert Validation
✓ Market Reality Check
Trust & credibility
Verified data sources
Trade publications
Security & defense sector journals and trade press
Industry databases
Proprietary and third-party market databases
Regulatory filings
Government procurement records and policy documents
Academic research
University studies and specialist institution reports
Company reports
Annual reports, investor presentations, and filings
Expert interviews
C-suite, procurement leads, and technical specialists
GMI archive
13,000+ published studies across 30+ industry verticals
Trade data
Import/export volumes, HS codes, and customs records
Parameters studied & evaluated
Every data point in this report is validated through primary interviews, true bottom-up modelling, and rigorous cross-checks. Read about our research process →