Fraud Detection and Prevention Market Dynamics
Drivers: Rosing demand for online applications and mobile banking services
A sudden rise in the number of fraudulent websites and mobile applications has been caused by the increasing use of online applications and mobile banking services. Fake websites and online apps are becoming more prevalent in other industries, including manufacturing, retail & e-commerce, and healthcare. Customers are lured into fraudulent online purchases by these websites and programs, which closely imitate real retail stores and home delivery services. Customers in the banking industry are increasingly focusing on mobile applications for various uses, including online payments, statement reviews, filing complaints, and providing feedback, among others. During the forecast period, the rise in start-up activity, the number of internet users, and the use of digital payment methods are all anticipated to support the expansion of the global fraud detection and prevention market.
Restraints: Lack of professionals & awareness across emerging economies
The absence of professionals and a competent workforce to upgrade FDP solutions across emerging nations impedes market expansion. Businesses maintain all of their crucial documentation and client data on the servers. Therefore, firms must safeguard their data from money launderers. However, occasionally sophisticated cyberattacks and fresh anonymous threats are anticipated to threaten conventional FDP solutions. The lack of acceptance and responsiveness across developing nations is another market barrier to growth.
Opportunities: Rising demand for A.I. and machine learning in the banking sector
The financial and banking sectors were early adopters of risk-prevention technologies. Due to the massive internet data exchanges, financial organizations are very vulnerable. By 2020, the number of Indians using online banking is expected to triple to 150 million, raising the danger of fraud, according to Facebook and BCG. Financial institutions are now focusing on both real-time fraud detection and financial risk mitigation. Systems for detecting fraud are developing as pattern recognition becomes more prevalent. Artificial intelligence has greatly improved thanks to machine learning technology, which can protect businesses from insider fraud and identify abnormalities in people who might leak data. The popularity of FDP solutions is increasing along with the demand for A.I. and machine learning.
The authentication category is estimated to be the largest growth in the steam engine market during the forecast period
The authentication category dominated the market. Businesses have long used authentication systems to protect sensitive data and consumer login information. As fraud efforts in customer-facing apps get more sophisticated, businesses rely on advanced authentication solutions like voice biometrics, single-factor authentication, and multi-factor authentication.
Small and medium enterprise (SMEs) is estimated to be the largest growing market category during the forecast period
The small and medium enterprises (SMEs) segment is projected to grow the fastest during the forecast period. The growth is mostly attributable to the rising need for security solutions, adapted by an expanding number of start-ups in countries like Germany, Canada, Brazil and Israel, among others. Due to an increase in fraudulent activities caused by the speeding up of digital transformation across industries, it is projected that the large enterprise market will experience considerable development in the years to come.
The North American segment is estimated to be the largest growing market during the forecast period
North America is the largest artificial intelligence in the aviation market and is projected to grow at the highest CAGR during the forecast period. The regional market's growth was influenced by increased instances involving payment fraud, identity thefts, and money laundering in the United States and Canada. Due to increasing investments made by several enterprises to prevent data breaches and enhance security I.T. infrastructure, the market will continue to grow steadily. The regional demand will continue to grow over the upcoming years due to the tightening of data security compliance regulations and the requirement to follow them to avoid costly fines. The market for fraud detection and prevention in North America is anticipated to grow due to the development of e-commerce and e-banking and the rising use of IP-based services.
Key Market Players
The fraud detection and prevention market is dominated by a few global players and comprises several regional players. Some key manufacturers operating in the market are Iovation Inc. (U.S.), IBM Corporation (U.S.), CardinalCommerce Corporation (U.S.), Oracle Corporation (U.S.), Experian PLC (Ireland), PayPal Holdings Inc. (U.S.), Distil Networks Inc. (U.S.), LexisNexis Risk Solutions Company (U.S.), Accertify Inc. (U.S.) and F5 Networks Inc. (U.S.).
- In April 2021, SURVEIL-X, an AI-powered suitability and monitoring solution for the wealth and insurance sector, was introduced by NICE Actimize. SURVEIL-X is the name of the solution created on a comprehensive surveillance platform.
- In March 2021, Mendoza Ventures LLC and a group of super angel investors from the financial services and cybersecurity sectors contributed USD 2 million to FiVerity, Inc.
- In November 2020, NetReveal KYC/CDD, watch list screening, and anti-money laundering transaction monitoring and filtering services provided by BAE Systems was enhanced.
- In June 2019, for small- and mid-sized banks, Oracle announced the release of Oracle Financial Services AML Express Edition. The technology helps businesses make sound business decisions, identify suspicious activity, and monitor consumer behavior to spot fraud in real-time, allowing them to remain compliant with the rules and respond to threats.
Global Fraud Detection and Prevention Market – By Component
- Fraud Analytics
- Risk and Compliance
- Professional Services
- Managed Services
- Identity theft
- Money Laundering
- Payment Fraud
- Small and Medium Enterprise (SMEs)
- Large Enterprises
- Government & Defense
- IT & Telecom
- Industrial & Manufacturing
- Retail & E-commerce
- North America
- Rest of Europe
- Asia Pacific
- South Korea
- South-east Asia
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- GCC Countries
- South Africa
- Rest of Middle East and Africa