Fraud Detection and Prevention Global Market Report 2024

Fraud detection and prevention refers to the strategies accepted to discover and avoid attempts to secure money or property by deception. Fraud detection and prevention services help organizations analyze huge and complex data sets to detect anomalies, reduce false positives, and provide end-to-end advanced fraud management solutions.

The main types of fraud detection and prevention are check fraud, identity fraud, internet/online fraud, investment fraud, payment fraud, insurance fraud, and other fraud types including mortgage fraud, insider fraud, and mobile fraud. Check fraud refers to automated check image analysis utilizing powerful software to detect small corrections that may not be visible to the human eye alone. These tools look at fixed information on the check such as payer’s details, signature line placement, font, check size, and serial number. The deployment modes used in fraud detection and prevention are on-premise and cloud and the various solutions provided include fraud analytics, authentication, reporting, and visualization. Fraud detection and prevention are used in insurance claims, money laundering, and electronic payment in small and medium enterprises (SMEs), and large enterprises.

The fraud detection and prevention market research report is one of a series of new reports that provides fraud detection and prevention market statistics, including fraud detection and prevention industry global market size, regional shares, competitors with a fraud detection and prevention market share, detailed fraud detection and prevention market segments, market trends and opportunities, and any further data you may need to thrive in the fraud detection and prevention industry. This fraud detection and prevention market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The fraud detection and prevention market size has grown exponentially in recent years. It will grow from $42.42 billion in 2023 to $53.28 billion in 2024 at a compound annual growth rate (CAGR) of 25.6%. The growth in the historic period can be attributed to increased digitization of financial transactions, rise in online banking and e-commerce, growing sophistication of fraud techniques, regulatory compliance requirements, expansion of mobile and online payment systems.

The fraud detection and prevention market size is expected to see exponential growth in the next few years. It will grow to $133.66 billion in 2028 at a compound annual growth rate (CAGR) of 25.9%. The growth in the forecast period can be attributed to growing need to protect smes from fraud, improved operational efficiency and enhanced customer experience, need to effectively manage huge volumes of identities by organizations, increasing adoption of advanced analytics techniques, expansion of real-time monitoring capabilities. Major trends in the forecast period include integration of artificial intelligence in fraud detection, emergence of blockchain technology for secure transactions, collaboration between industry stakeholders for information sharing, integration of cybersecurity and fraud prevention solutions, continuous evolution of fraud techniques, requiring dynamic solutions.

An increase in the frequency of cyberattacks and frauds is driving the growth of the fraud detection and prevention market. The International Criminal Police Organization's judgement of the impact of COVID-19 on cybercrime has demonstrated an important target shift from individuals and small businesses to major corporations. For instance, in October 2023, according to a report issued by AAG, a UK-based information technology (IT) service provider, there was a 125% increase in cyberattacks worldwide, and in 2022, the threat created by these attacks to individuals and organizations further grew. Therefore, the increase in the frequency of cyberattacks and frauds is driving the growth of the fraud detection and prevention market.

The rising popularity of the growing e-commerce industry is expected to boost the growth of the fraud detection and prevention market going forward. E-commerce refers to the buying and selling of goods and services over the internet. The growth of online shopping and digital payment methods has led to an uptick in online fraud, driving the demand for fraud detection tools in the e-commerce sector. According to US eCommerce statistics, in 2022, 65% of consumers anticipate using internet purchasing platforms more frequently. By 2024, it is anticipated that e-commerce revenues will total $6.3 trillion. Further, according to Esw, a global eCommerce management company, there are currently 29.6 million eCommerce users in Spain, with an additional 7.3 million users shopping online by 2025. These 36.9 million eCommerce users will represent 74% of the total population. The average user spends $804 online. Hence, the rising popularity of the growing e-commerce industry is driving the growth of the fraud detection and prevention market.

Technological advancement is a key trend gaining popularity in the fraud detection and prevention market. Technological advancement is the discovery of knowledge that advances the understanding of technology. For instance, in October 2022, DG Financial Technology Inc. (DGFT), a Japan-based service provider company, partnered with Scudetto Corporation, a Japan-based company specializing in online fraud prevention, and launched Sift Digital Trust & Safety Suite (Sift), an artificial intelligence (AI)-built fraud detection solution. Sift is a fraud detection and prevention solution that uses artificial intelligence to detect fraud and abuse in the e-commerce space and online, including credit card fraud and account takeover, to reduce the damage from chargebacks and other fraudulent activities by streamlining fraud prevention operations and increasing revenue.

Major companies operating in the fraud detection and prevention market are developing strategic partnerships. Strategic partnerships refer to a process in which companies leverage each other's strengths and resources to achieve mutual benefits and success. For instance, in June 2022, Advanced Fraud Solutions (AFS), a US-based company that specializes in providing technology and solutions to help financial institutions, businesses, and organizations detect and prevent fraudulent activities and transactions, announced its collaboration with Fiserv, a US-based provider of payments and financial services technology. The collaboration will allow Fiserv and financial institution clients to check fraud detection, risk-based fund availability, and decision processes, helping to prevent losses and identify fraudulent deposits before they are accepted.

In September 2021, TransUnion, a US-based financial information platform has acquired Neustar for an undisclosed amount. The acquisition is expected to advance TransUnion’s strategy to expand from its credit solutions with supportive digital marketing and fraud mitigation capabilities. Neustar, Inc., is an American technology company that offers real-time information and analytics for the Internet, risk, and digital performance.

Major companies operating in the in the fraud detection and prevention market report are IBM Corporation, Fair Isaac Corporation, Oracle Corporation, SAS Institute Inc., BAE Systems plc, DXC Technology Company, SAP SE, ACI Worldwide Inc., Fiserv Inc., ThreatMetrix company, NICE Systems Ltd., F5 Networks Inc., Equifax Inc., Cybersource Corporation, Global Payments Inc., Experian Information Solutions Inc., TransUnion LLC, RSA Security LLC, LexisNexis Risk Solutions, Kount Inc., Feedzai Inc., Featurespace Inc., Pindrop Security Inc., Simility Inc., Signifyd Inc., Forte India Enterprises Private Limited, Sift Science Inc., Idology Inc., Software AG, Total System Services Inc.

North America was the largest region in the fraud detection and prevention market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the fraud detection and prevention market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the fraud detection and prevention market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The fraud detection and prevention market consists of revenues earned by entities that provide protection against fraudulent activities that can involve a broad range of cases such as money laundering, cybersecurity threats, tax evasion, and fraudulent insurance claims. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified)).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


This product will be delivered within 3-5 business days.