Artificial Intelligence (AI)-Enhanced Point-of-Sale (POS) Fraud Market Report 2025

The artificial intelligence (AI)-enhanced point-of-sale (POS) fraud market size has grown exponentially in recent years. It will grow from $3.22 billion in 2024 to $3.92 billion in 2025 at a compound annual growth rate (CAGR) of 21.6%. The growth during the historic period can be credited to the rising incidence of cyber fraud, increased volumes of digital payment transactions, heightened regulatory compliance demands, growing financial losses due to fraudulent retail transactions, and the expanding use of online and mobile payment platforms.

The artificial intelligence (AI)-enhanced point-of-sale (POS) fraud market size is expected to see exponential growth in the next few years. It will grow to $8.47 billion in 2029 at a compound annual growth rate (CAGR) of 21.2%. The growth expected in the forecast period can be attributed to the expansion of digital payments and e-commerce, stricter regulatory requirements for fraud prevention, an increasing demand for real-time cross-channel fraud detection, rising incidents of digital payment fraud, and greater adoption by small and medium enterprises due to scalable AI solutions. Key trends during this period include the development of adaptive fraud models, real-time transaction monitoring, integration of behavioral analytics, advancements in deep learning algorithms, and innovations in decentralized fraud detection.

The rise in digital payment transactions, driven by increased smartphone and internet penetration, is fueling the growth of the artificial intelligence (AI)-enhanced point-of-sale (POS) fraud market. Digital payment solutions offer accessible and convenient electronic money transfers, but also increase the risk of fraudulent activities. AI-powered POS fraud detection addresses this by analyzing transaction patterns in real time to identify and prevent suspicious activities, thereby reducing financial risks and enhancing trust in payment systems. For example, in 2023, contactless card payments in Europe surged by 24.3% to 20.9 billion, highlighting the growing reliance on digital payments and the consequent need for robust fraud detection solutions.

Major companies in the AI-enhanced point-of-sale (POS) fraud market are developing advanced AI-powered fraud detection platforms to improve real-time transaction security and minimize financial losses. These platforms use efficient AI algorithms to quickly identify and prevent fraudulent activities without heavy computational demands. For example, in July 2025, India-based Subex Limited launched FraudZap, a lightweight AI fraud detection system designed for telecom operators. FraudZap offers high agility and precision, enabling rapid deployment and real-time fraud control through continuously learning AI models, all while keeping costs and implementation efforts low.

In December 2024, Visa Inc., a US-based digital payments and fintech leader, acquired UK-based Featurespace Limited for \$0.945 billion to strengthen its global fraud detection capabilities. This acquisition enables Visa to integrate Featurespace’s AI-powered real-time payments protection technology, enhancing security, reducing financial crime, and delivering seamless fraud prevention solutions for both clients and consumers in the point-of-sale (POS) environment.

Major players in the artificial intelligence (ai)-enhanced point-of-sale (pos) fraud market are Amazon Web Services Inc., International Business Machines Corporation, Oracle Corporation, PayPal Holdings Inc., Stripe Inc., ClearSale S.A., Jumio Corporation, Feedzai S.A., Signifyd Inc., Matellio Inc., Neural Technologies Ltd., DataVisor Inc., ZestFinance Inc., Hawk AI GmbH, Ginesys, Tookitaki Holding Pte Ltd., ComplyAdvantage Ltd., DataDome SAS, Sift Science Inc., and Sardine AI Corp.

North America was the largest region in the artificial intelligence (AI)-enhanced point-of-sale (POS) fraud market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in artificial intelligence (AI)-enhanced point-of-sale (POS) fraud report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the artificial intelligence (AI)-enhanced point-of-sale (POS) fraud market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.

Artificial intelligence (AI)-enhanced point-of-sale (POS) fraud involves fraudulent activities targeting POS systems that are either facilitated by or detected through AI technologies. This includes using advanced algorithms to carry out sophisticated fraud or to identify and prevent unauthorized transactions in real time.

The primary components of AI-enhanced POS fraud consist of software, hardware, and services. Software encompasses malicious AI tools designed to manipulate transactions, imitate legitimate behavior, and bypass security measures to steal financial data or funds. These solutions come in various types, including fraud detection, transaction monitoring, identity verification, risk and compliance management, among others, and can be deployed on-premises or via the cloud. They are intended for organizations of all sizes, ranging from small and medium enterprises to large corporations, and serve multiple sectors such as retail, hospitality, banking and financial services, e-commerce, and others.

The artificial intelligence (AI)-enhanced point-of-sale (POS) market research report is one of a series of new reports that provides artificial intelligence (AI)-enhanced point-of-sale (POS) market statistics, including artificial intelligence (AI)-enhanced point-of-sale (POS) industry global market size, regional shares, competitors with an artificial intelligence (AI)-enhanced point-of-sale (POS) market share, detailed artificial intelligence (AI)-enhanced point-of-sale (POS) market segments, market trends and opportunities, and any further data you may need to thrive in the artificial intelligence (AI)-enhanced point-of-sale (POS) industry. This artificial intelligence (AI)-enhanced point-of-sale (POS) 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 artificial intelligence (AI)-enhanced point-of-sale (POS) fraud market consists of revenues earned by entities by providing services such as system integration, deployment support, training and education, fraud analytics outsourcing, maintenance and upgrades, risk assessment services, and compliance support. The market value includes the value of related goods sold by the service provider or included within the service offering. The artificial intelligence (AI)-enhanced point-of-sale (POS) fraud market also includes sales of fraud detection software, transaction monitoring tools, real-time risk scoring engines, behavioral analytics platforms, device fingerprinting systems, alert management dashboards, and anomaly detection systems. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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.

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