Fraud Detection and Prevention Market size to cross $250 Bn by 2032

Fraud Detection and Prevention (FDP) Market size is anticipated to reach USD 250 billion by 2032, according to a new research report by Global Market Insights Inc.
 

Rapidly expanding eCommerce sector, also the rising usage of mobile payments and higher money flows across the online channel are accelerating the market expansion. For example, in FY22, UPI processed over 46 billion transactions worth more than Rs 84.17 trillion in India. the most prominent use cases have been payment fraud, account takeover fraud, and new account fraud majorly driven by the increasing use of smartphones, thereby promoting the market demand. According to research, global ecommerce losses are expected to approach $48 billion in 2023.
 

Rising number of external frauds attempted by organized mafia groups to impel the industry growth

The fraud detection and prevention market share from the external fraud segment is estimated to depict a 23% CAGR through 2032, due to the increasing number of crimes attempted by organized mafia and criminal groups in external frauds. According to a 2022 survey, around 31% of external fraud instances were performed by hackers, with 28% carried out by organized crime groups - considerable increase from 2020.
 

Increasing number of companies adopting FDP services to support the industry expansion

The fraud detection and prevention (FDP) market from the service segment is predicted to grow at 25% CAGR till 2032, owing to rising demand for fraud detection and prevention services by enterprises to mitigate the risk of fraud and financial losses, which aids them to concentrate on their core competencies. For instance, in the second half of 2022, India, the United States, Indonesia, and China accounted for 45% of total cyberattacks on government institutions worldwide.
 

Surging need for advanced fraud detection and prevention services to favor managed service segment growth

The fraud detection and prevention market size from the managed service segment generated more than USD 3 billion in revenue in 2022, on account of the ongoing advancement and improvement of reliable algorithms. The development of digital payment channels and rise in fraud instances have also made it more challenging for businesses to continue fraud detection using conventional techniques, pushing the demand for managed services to effectively combat such frauds.
 

Browse key industry insights spread across 270 pages with 488 market data tables and 38 figures & charts from the report, “Fraud Detection and Prevention (FDP) Market Size By Fraud (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, Growth Potential, Regional Outlook, Competitive Market Share & Forecast, 2023 – 2032” in detail along with the table of contents:
https://www.gminsights.com/industry-analysis/fraud-detection-and-prevention-market
 

Growing preference for digital and card-based payment methods to increase segment share

The credit and debit fraud segment is set to exhibit over 24% CAGR between 2023 and 2032. As per the report, the growing inclination of the global economy towards digital payments and the declining usage of physical currency has significantly increased card-based financial transactions leading to an increase in card skimming, counterfeit cards, and frauds for obtaining sensitive data, such as passwords and OTPs, which is foreseen to support the market growth. According to research, 72,822 cases of online purchasing fraud were reported by UK businesses and customers between June 2021 and July 2022.
 

Rise in online financial frauds to boost product adoption rate in healthcare sector

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In terms of end-use, the FDP market share from the healthcare segment exceeded USD 1.5 billion revenue in 2022, attributed to rising illicit practices, such as false insurance claims, medical identity thefts, administrative frauds, and prescription frauds.
 

Lack of regulations for online financial services to augment APAC market revenue

Regionally, the Asia Pacific fraud detection and prevention market is poised to witness 28% CAGR during the forecast period. The report cites that the incidences of money laundering and tax evasion have increased across the region as a result of lax regulations on internet finance, cryptocurrencies, and other financial services. For instance, in 2022, the Reserve Bank of India (RBI) recorded a total of 9,103 bank fraud incidents in India. In addition, the extensive usage of outdated security mechanisms for payment authentication is estimated to favor regional revenue growth from 2023 to 2032.
 

Strategic product introductions by leading firms to define the industry outlook

Some of the leading companies operating in the fraud detection and prevention market include AVG Technologies, FRISS, IBM Corporation, Fiserv, Inc., SAP SE, SAS Institute Inc., and SpyCloud, Inc. Several new advancements and product range expansions by companies are projected in the market. In November 2021, global leader in financial crime and compliance management, NICE Actimize launched its latest dark web intelligence solution to assist in combating and preventing a variety of complex fraud schemes through the usage of the Dark Web.