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Fraud Detection and Prevention Market size worth $100 Bn by 2027

  • Published Date: January 20, 2022

Fraud Detection and Prevention (FDP) Market size is set to surpass USD 100 billion by 2027, according to a new research report by Global Market Insights Inc.
 

The FDP market growth is attributed to the rapid digitization among enterprises across industry verticals due to the availability of low-cost connected devices, which is accelerating the fraud attacks. FDP technology is deployed across all layers of decision making, product innovation, service delivery, and customer connectivity to attract new customers and deliver the type of experience they expect. Also, the growing number of online & mobile banking services coupled with the increasing number of real-time transactions is supporting the industry demand.

 

Increasing need to reduce occupational dishonesty and promote integrity by adopting Governance, Risk management and Compliance (GRC)

The GRC solution segment is expected to grow at over 20% CAGR through 2027 due to increasing need to reduce occupational dishonesty, promote integrity, and achieve defined objectives within the regulatory compliance frameworks. The rising cases of internal frauds by employees and the threat of stakeholder value erosion have driven the enterprises to adopt strong GRC measures through FDP tools. Another major benefit of integrated GRC is the option of customized GRC data warehouse with assimilated data, integrating business intelligence and data analytics for better risk detection & prevention.
 

Global Fraud Detection & Prevention Market Size, By End-use

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Increasing number of external frauds is fueling the FDP solutions and services demand

The external fraud type segment held more than 60% of the fraud detection and prevention market share in 2020 on account of growing involvement of organized mafia and criminal groups in external frauds. The Basel II regulatory framework recognizes external fraud as one of the major business threats to any enterprise. With easily available hacking tools and continuously evolving identity theft techniques, external frauds have witnessed a rapid surge. Fraudsters are increasingly attacking large enterprises with multiple verticals since the chances of frauds being noticed are very low and financial gains are significantly higher, leading to rising number of FDP solutions being deployed.
 

Browse key industry insights spread across 330 pages with 468 market data tables and 39 figures & charts from the report, “Fraud Detection and Prevention (FDP) Market Size By Fraud Type (External, Internal), By Component (Solution {Fraud Analytics, Identity and Authentication, GRC, Monitoring and Reporting}, Service {Professional Service, Managed Service}), By Application (Money Laundering, Credit and Debit Fraud, Mobile Fraud, Identity Threat, Electronic Fraud), By End-use (Banking, Insurance, Government, Healthcare, E-commerce, Education), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:

https://www.gminsights.com/industry-analysis/fraud-detection-and-prevention-market
 

Rapid surge in the occurrence of mobile frauds owing to a strong foothold of handheld devices

The fraud detection and prevention market from mobile fraud application is poised to achieve 25% gains till 2027. Mobile frauds refer to intentional and deliberate actions by fraudsters to misuse the mobile financial services ecosystem. The rising incidents of mobile thefts have also increased the occurrence of mobile frauds as the stolen devices can be used to obtain OTP/authorization for fraudulent transactions.
 

Financial losses and the growing cases of false insurance claims

The insurance end-use segment captured more than 10% of the revenue share in 2020 led by increasing need to adopt fraud detection & prevention solutions & services to counter financial losses and false insurance claims. The insurance sector is the most fraud-affected sector as fraudsters think of it as low-risk and lucrative. With insurance policies offering a wide range of coverage, faking insurance claims and misappropriating damages have significantly increased.
 

Growing BFSI industry in North America

North America fraud detection and prevention market is anticipated to account for above USD 8 billion revenue by 2027. Stringent government regulations related to data privacy, money laundering, and other fraudulent activities and strong deployment of FDP solutions across the BFSI sector is boosting the regional business expansion. Also, the region has a strong presence of prominent players, and their increasing investments in R&D will enhance the FDP solutions demand.
 

Focus on product development and strategic partnerships by key players

Companies are focusing on partnership initiatives to address the market demand. For instance, in October 2020, BAE Systems signed a partnership agreement with Guidewire software to develop NetReveal, an integrated FDP platform. This partnership helped the company to offer sustainable solutions to the retail and e-commerce industry and generate a new revenue stream.
 

Some of the key players operating in the fraud detection and prevention market are ACI Worldwide, Arbutus Software, Avast Software, AVG, DXC Technology, ESET Endpoint Security, Experian, Finserv, First Data, FIS Global, Friss, GreatHorn, Guardian Analytics, IBM, LexisNexis Risk Solutions, SAP, SAS Institute, SpyCloud, Trulioo, Verifi, and Webroot SecureAnywhere.
 

Authors: Preeti Wadhwani, Smriti Loomba