Fraud Detection and Prevention (FDP) Market size worth over $80bn by 2025
Published Date: August 28, 2019 Authors: Ankita Bhutani, Preeti Wadhwani
Fraud Detection and Prevention (FDP) Market size is set to exceed USD 80 billion by 2025; according to a new research report by Global Market Insights, Inc.
The Fraud Detection and Prevention (FDP) market growth is attributed to hefty economic losses happening in countries. The rapid surge in corporate economic crimes that include money laundering is contributing to banks’ and the countries’' net loss. These frauds have contributed to the regional & global economic slowdown. The proliferation of smartphones and the growing demand for real-time transactions are propelling the use of several digital payment methods. Fraudsters are relying on soft targets and substantial loopholes to commit frauds, proliferating the deployment of FDP solutions across various end-use industries including banks, insurance, government, and e-commerce.
Frauds in any vertical lead to the squandering of tax money, raise the price of several goods & services, pull resources from innovations, and even cost human lives. The rapid digitization among enterprises across industry verticals due to the availability of low-cost connected devices is accelerating fraud attacks. E-mail frauds and phishing attacks affect enterprises of every size across various industries result in huge financial and sensitive data losses. Payment technology providers are focusing on technological innovations and strategic alliances to mitigate the risks of new payment frauds. For instance, in June 2018, PayPal acquired Simility, fraud risk, and prevention management platform for USD 120 million. The machine learning-powered tool of Simility will help traders to reduce the fraudulent payment activity and verify the failed payment.
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Browse key industry insights spread across 300 pages with 420 market data tables & 38 figures & charts from the report, “Fraud Detection and Prevention (FDP) Market Size By 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 & Debit Fraud, Mobile Frauds, Identity Threat, Electronic Fraud), By End-Use (Banking, Insurance, Government, Healthcare, E-commerce, Education), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2019 - 2025” in detail along with the table of contents:
The service segment is estimated to register more than 25% CAGR between 2019 and 2025 due to the increasing deployment of FDP solutions across enterprises. Fraud services include providing fraud identification, detection, and prevention services with service providers, retaining the responsibility for the functionality of its services. Fraud services consist of a wide variety of anti-fraud measures, tackling fraud from the early stages of a transaction to investigation and recovery procedures. With organizations consistently under threat from various frauds and being exposed to huge financial losses, the adoption of fraud services has significantly increased.
The credit & debit card fraud held over 30% market share in 2018 and is anticipated to maintain the market share over the forecast timeline due to the increasing use of chips in credit & debit cards that do not require authentication for small-value transactions. The credit & debit card frauds involve frauds, thefts or any illegal transactions performed by a payment card (debit/credit), using the card as a fraudulent source of money for transactions. Such frauds are either performed to make online purchases without paying or transferring funds from a particular account. With the increase in migration of the global economy toward digital payments and reduced use of physical cash, card-based financial transactions have risen significantly. Card facilities are availed by nearly all bank customers, making cards one of the most fraud-prone payment mediums.
The education segment is estimated to register a substantial growth rate between 2019 and 2025 due to the lack of internal controls, unclear reporting channels, missing management reviews, and insufficient personnel for monitoring frauds. Educational sector employees often find new methods to trick the system, fueling frauds in educational systems. Adequate awareness and stringent anti-fraud regulations are anticipated to reduce fraudulent activities. The educational institutions are spending a huge amount to detect and prevent fraudulent activities. For instance, Texas A&M University, which ranks eighth in the list of wealthiest U.S. universities (grants worth USD 11.5 billion in 2018), set up a 24x7 misconduct hotline. It addresses all types of scams, frauds, and illicit activities, providing fully anonymous reporting.
The Asia Pacific FDP market is projected to exhibit more than 25% CAGR over the forecast timeline due to the burgeoning e-commerce sector. The rapid surge in digital payment methods coupled with a high proportion of digital illiteracy is increasing the amount of fraud loss in the region. Additionally, the recent fraud scandals, such as 1MDB scandal (Malaysia) and PNB fraud (India), are propelling the demand for FDP solutions across various end-uses in the region.
Prominent players including payment technology providers, software developing firms, and financial institutions that operate in the FDP 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. Payment technology providers are focusing on strategic partnerships with software developing firms to reduce fraud risks. For instance, in April 2019, Fidelity National Information Services (FIS) partnered with IBM to deploy IBM safer payments to detect & prevent fraudulent P2P transactions in real-time.
The Fraud Detection and Prevention (FDP) market research report inludes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2014 to 2025, for the following segments:
Fraud Detection and Prevention (FDP) Market, By Component
- Fraud Analytics
- Identity and Authentication
- Governance, Risk Management and Compliance (GRC)
- Monitoring and Reporting
- Professional Service
- Managed Service
Fraud Detection and Prevention (FDP) Market, By Type
Fraud Detection and Prevention (FDP) Market, By Application
- Money Laundering
- Credit & Debit Fraud
- Mobile Frauds
- Identity Threat
- Electronic Fraud
Fraud Detection and Prevention (FDP) Market, By End-Use
The above information has been provided for the following regions and countries:
- North America
- Asia Pacific
- South Korea
- South Africa
- Saudi Arabia