Fraud Detection and Prevention Market size is set to grow by USD 47.39 billion from 2022-2027, The growing adoption of cloud-based service to drive the market growth, Technavio

NEW YORK, March 5, 2024 /PRNewswire/ -- The fraud detection and prevention market size is estimated to increase by USD 47.39 billion from 2022 to 2027, according to Technavio. The market is estimated to grow at a CAGR of 20.22% during the forecast period. The growth of the fraud detection and prevention market is significantly driven by the increased adoption of cloud-based services. Government agencies increasingly choose cloud-based solutions due to their versatility and scalability, catering to various needs like authentication, video management, biometric storage, and big data processing. Cloud data security becomes a paramount concern for agencies handling massive daily data volumes, prompting the adoption of cloud services, especially among defense organizations lacking dedicated security infrastructure. Consequently, the rise in cloud-based service adoption and increased security needs improve the demand for military-grade cybersecurity solutions, thus boosting the growth of the fraud detection and prevention market during the forecast period.

For more insights on the historic (2017 to 2021) and forecast market size (2023 to 2027)  

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Segment Overview
Technavio has segmented the market based on Component (Solutions and Services), End-user (Large enterprise and SMEs), and Geography (North America, Europe, APAC, South America, and Middle East and Africa). 

• During the forecast period, significant market share growth is anticipated in the solutions segment. The rise in adoption of fraud detection and prevention solutions within organizational IT departments is driven by increasing instances of intrusion, the necessity for robust fraud prevention measures, and security breaches. Notably, Biometrics authentication emerged as a leading revenue contributor within the solutions segment.

Geography Overview
By geography, the global fraud detection and prevention market is segmented into North America, Europe, APAC, South America, and Middle East and Africa. The report provides actionable insights and estimates the contribution of all regions to the growth of the global fraud detection and prevention market.

• During the forecast period, North America is projected to contribute 39% to the global market, influenced by several factors. Notably, the presence of key vendors like IBM, Intel, Symantec, Akamai Technologies, Check Point Software Technologies, and Cisco Systems in the US sustains the country's dominance in the global market. The region faces increased cyber threats due to technological advancements in data utilization, cloud-based system deployment, boosting increased demand for fraud prevention solutions within IT organizations. Consequently, these elements are set to boost the growth of the market in North America.

Insights on the market contribution of various segments including country and region wise, historic (2017 to 2021) and forecast market size (2023 to 2027) 

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Technological advancements

Exemplified by innovations like Sift Digital Trust & Safety Suite, an AI-based fraud detection solution launched by DG Financial Technology Inc and Scudetto Corporation in Japan, boost market growth by combating e-commerce fraud and optimizing fraud prevention operations.

Sift utilizes artificial intelligence to detect and mitigate various forms of online fraud, including account takeover and credit card fraud, minimizing losses from fraudulent activities and enhancing revenue, thus driving growth in the market.

• Complex IT infrastructure set as a challenge due to interconnected systems from IoT, cloud computing, big data, and mobile devices lacking robust security features.

Insights on Market Drivers, trends, & Challenges, historic period(2017 to 2021) and forecast period(2023 to 2027)

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Analyst Review

In the age of Industry 4.0 and the digital revolution, eCommerce and online marketplaces have transformed the way we conduct transactions. However, with this convenience comes the looming threat of fraudulent activities and cybercriminals lurking in the shadows. From fake websites to sophisticated scams, the landscape of online platforms is fraught with peril.

To counter these threats, banking applications and websites are integrating robust fraud detection and prevention systems. These systems leverage advanced technologies such as big data analytics, machine learning, and predictive analytics to stay one step ahead of cybercriminals. Additionally, the advent of IoT devices introduces new vectors for frauds, necessitating constant vigilance and innovation.

The Global System of Mobile Communication (GSMA) standards and digital payment methods have made transactions seamless, but they also attract fraudulent activities like ad and ATM fraud and fake card activations. Online bookings and mobile banking services further compound the challenge, as cybercriminals exploit vulnerabilities in these systems.

Enterprises, both large and small & medium, are investing heavily in fraud analytics and authentication solutions to mitigate risks. Cloud technology and blockchain offer secure platforms for online applications and cryptocurrency transactions, bolstering security and privacy.

Amidst these efforts, the role of cybersecurity professionals cannot be overstated. Organizations rely on their expertise to combat IoT frauds, malware, and account takeovers. Bodies like the Bureau of Labor Statistics and National Association of Software and Service Companies (NASSCOM) track industry trends and advocate for robust governance, risk, and compliance measures.

Both on-premise and cloud security solutions are deployed to fortify defenses, catering to the diverse needs of financial services, online applications, and mobile applications. Business intelligence (BI) tools analyze user behavior patterns, empowering organizations to stay proactive against evolving threats.

In this dynamic landscape, solutions like DataVisor's Unsupervised Machine Learning (UML) Engine play a pivotal role. By leveraging big data, predictive analytics, and machine learning, they uncover fraudulent activities and protect businesses from account takeovers (ATO) and other cyber threats.

In conclusion, as the digital realm continues to evolve, the fight against fraud is an ongoing battle. With collaboration, innovation, and a relentless pursuit of authentication and security, businesses can navigate this landscape with confidence. 

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Related Reports:

Predictive Analytics Market: The predictive analytics market size is estimated to grow at a CAGR of 22.24% between 2022 and 2027. The market size is forecast to increase by USD 2,1601.17 million.

Healthcare Fraud Detection Market: The healthcare fraud detection market share is expected to increase by USD 1.26 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 14.26%.

TOC

1. Executive Summary
2. Market Landscape
3. Market Sizing
4. Historic Market Size
5. Five Forces Analysis
6. Market Segmentation by Component
7. Market Segmentation by End-User
8. Customer Landscape
9. Geographic Landscape
10. Drivers, Challenges, and Trends
11. Company Landscape
12. Company Analysis
13. Appendix

About US
Technavio is a leading global technology research and advisory company. Their research and analysis focus on emerging market trends and provide actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio