Artificial Intelligence (AI)-Powered Digital Commerce Fraud Shield Market Report 2026

The artificial intelligence (ai)-powered digital commerce fraud shield market size has grown exponentially in recent years. It will grow from $8.51 billion in 2025 to $10.56 billion in 2026 at a compound annual growth rate (CAGR) of 24.1%. The growth in the historic period can be attributed to increasing growth of e-commerce transactions, rising digital payment fraud incidents, expansion of online marketplaces, growing adoption of cloud commerce platforms, increasing need for transaction security.

The artificial intelligence (ai)-powered digital commerce fraud shield market size is expected to see exponential growth in the next few years. It will grow to $24.79 billion in 2030 at a compound annual growth rate (CAGR) of 23.8%. The growth in the forecast period can be attributed to increasing investments in ai-driven fraud prevention, rising demand for real-time transaction protection, expansion of cross-border digital commerce, growing focus on identity verification, increasing sophistication of fraud tactics. Major trends in the forecast period include increasing deployment of ai-based fraud detection engines, rising use of behavioral biometrics in online transactions, growing adoption of real-time risk scoring models, expansion of cloud-native fraud shield platforms, enhanced focus on adaptive fraud learning.

The expanding adoption of e-commerce platforms is expected to boost the AI-powered digital commerce fraud shield market in the coming years. E-commerce platforms are online marketplaces and retail websites that facilitate the buying and selling of products and services over the internet. Their growth is largely fueled by increasing internet penetration, allowing more consumers to access online stores, compare products, and make purchases conveniently from anywhere. AI-powered digital commerce fraud shields assist these platforms by detecting and preventing fraudulent transactions in real time, protecting customer trust, minimizing financial losses, and ensuring a secure and seamless shopping experience. For example, according to the U.S. Census Bureau, U.S. retail e-commerce sales reached $292.9 billion in the second quarter of 2025, marking a 6.2% increase from the first quarter. Compared to the second quarter of 2024, e-commerce grew by 5.3%, while overall retail sales rose by 3.8% over the same period. This surge in e-commerce platform adoption is therefore driving the growth of the AI-powered digital commerce fraud shield market.

Key players in the AI-powered digital commerce fraud shield market are developing advanced solutions, including AI-driven fraud prevention systems, to identify and prevent fraudulent transactions in real time. These systems use artificial intelligence to analyze transactions, detect suspicious patterns, and prevent fraud, reducing financial losses, minimizing false declines, and strengthening customer trust in online shopping. For example, in March 2025, U.S.-based Riskified Ltd., a provider of e-commerce fraud and risk intelligence solutions, launched Adaptive Checkout, an AI-powered fraud prevention tool designed to optimize e-commerce conversion rates by tailoring each checkout flow based on the transaction’s risk profile and shopper history. The system applies selective verification steps, such as CVV, OTP, or 3DS, only for higher-risk orders while allowing low-risk customers to complete purchases seamlessly. This approach enables merchants to approve more legitimate transactions, effectively block fraud, and increase revenue, as demonstrated by clients such as TickPick. Adaptive Checkout effectively balances fraud prevention with maximizing approvals, supporting e-commerce growth.

In January 2025, U.S.-based software firm Chainalysis Inc. acquired Alterya Ltd. for around $150 million. This acquisition enables Chainalysis to leverage Alterya’s AI-driven fraud detection technology to provide comprehensive, real-time fraud protection for both cryptocurrency and traditional payment systems, enhance KYC and compliance processes for exchanges and wallet providers, reduce losses from scams, and strengthen its capability to detect and prevent fraud at scale. Alterya Ltd., headquartered in Israel, specializes in AI-powered fraud detection solutions for the fintech and cybersecurity industries.

Major companies operating in the artificial intelligence (ai)-powered digital commerce fraud shield market are Stripe Inc., LexisNexis Risk Solutions, ACI Worldwide Inc., Fair Isaac Corporation, CyberSource Corporation, Riskified Ltd., Accertify Inc., Forter Ltd., Feedzai Inc., Signifyd Inc., ClearSale S.A., Kount Inc., DataDome Group Inc., Ravelin Technology Ltd., Arkose Labs Inc., SymphonyAI, DataVisor Inc., Featurespace Ltd., Sift Science Inc., NoFraud LLC.

North America was the largest region in the artificial intelligence (AI)-powered digital commerce fraud shield market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence (ai)-powered digital commerce fraud shield market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the artificial intelligence (ai)-powered digital commerce fraud shield market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The artificial intelligence (AI)-powered digital commerce fraud shield market consists of revenues earned by entities by providing services such as compliance support for fraud-related regulations, machine learning model training and customization, fraud consulting and strategy advisory, behavioral analytics and anomaly detection, threat intelligence and reporting services. The market value includes the value of related goods sold by the service provider or included within the service offering. The artificial intelligence (AI)-powered digital commerce fraud shield market also includes sales of rule-based fraud detection engines, transaction risk management tools, cloud-based fraud analytics dashboards, behavioral biometrics software, bot detection and mitigation tools. 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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