Fraud Detection and Prevention (FDP) Market Size By Fraud (External, Internal), By Component (Solution, Service), By Application (Money Laundering, Credit and Debit Fraud, Mobile Fraud, Identity Threat, Electronic Fraud), By End-use & Forecast, 2023-2032

Fraud Detection and Prevention Market Size

Fraud Detection and Prevention Market size valued at USD 30 billion in 2022 and is set to grow at over 25% CAGR from 2023 to 2032. Growing preference for electronic & digital payment methods to support the market growth.
 

The short transaction period leading to a booming number of digital channels and payment methods is increasing the complexity of the payment chain, thereby boosting the demand for fraud prevention and detection services and solutions. Stringent government regulations regarding noncompliance with FDP standards to mitigate money laundering and other cybercrimes are also likely to enhance business revenue. Furthermore, the increasing use of AI and ML in the BFSI sector to help prevent fraud is projected to augment the demand for FDP services.
 

Lack of availability of skilled professionals may limit business growth

There is a growing demand for skilled individuals who can keep up with the changes and improvements in technology since the online threat environment is constantly evolving and attacks are becoming more and more sophisticated in their threat vectors, which is hampering the fraud detection and prevention market development.
 

According to several surveys, there is a huge talent gap between the open cybersecurity employment positions and the availability of a skilled workforce who can fill them. However, businesses are taking steps to educate their employees with specialized training opportunities and courses, as well as the integration of advanced technologies such as AI and ML, which is foreseen to be lucrative for product penetration.
 

Fraud Detection and Prevention Market Analysis

The internal fraud segment will exceed USD 130 billion by 2032, on account of the increasing deployment of fraud management solutions by financial institutions to prevent the rising number of internal frauds and cybercrimes in FIs globally. Formal internal fraud management systems based on independent checks and separation of duties are critical in preventing and monitoring employee collusions and internal frauds.
 

Europe fraud detection and prevention market held approximately 27.5% of the revenue share in 2022, due to an increase in cybercrimes and frauds resulting from growing consumer preference for online shopping, the proliferation of digital payment methods, and limited opportunities for customer verification brought on by cross-border trade. Consequently, the growing number of strict government restrictions for data privacy and identity protection are slated to influence regional development.
 

The fraud detection and prevention market from solution segment is expected to exhibit about 24% growth rate through 2032. The increase in the number of security breaches, online frauds, and cyber-attacks across various industrial settings is raising the deployment of fraud detection solutions, which is a major factor driving the market revenue.
 

The GRC segment accounted for USD 2.5 billion revenue in 2022, as a result of an increasing number of businesses adopting the GRC to lower occupational dishonesty, promote integrity, and accomplish specific goals within regulatory compliance frameworks.
 

The money laundering segment will acquire 16.5% of the fraud detection and prevention market share by 2032, attributed to rising cases of money laundering to avoid tax payments and support terrorist activities have increased the adoption of risk management solutions across financial institutions to monitor high-value transactions, conduct stringent customer verification processes, and provide predictive analysis on risky customers to prevent money laundering.
 

The education sector is poised to reach USD 8.5 billion by 2032. This sector is particularly susceptible to internal fraud due to a lack of internal controls, unclear reporting systems, a lack of management evaluations, and an inadequate number of employees to monitor fraud. Many educational institutions are employing FDP services to curb these incidences.
 

Fraud Detection and Prevention Market Share

Major players involved in the fraud detection and prevention market are

• AVG Technologies
• Fiserv, Inc.
• FRISS
• IBM Corporation
• SAP SE
• SAS Institute Inc.
• SpyCloud, Inc.

These companies are implementing numerous tactics, such as portfolio diversification, new product development, and mergers and acquisitions, to expand their business.
 

Impact of COVID-19 Pandemic

The onset of COVID-19 escalated the cybercrime rates owing to the explosive demand of online shopping, and growing acceptance of flexible remote work arrangements. Businesses are investing in advanced cybersecurity and fraud prevention systems and solutions as corporate executives have begun to focus on identifying and tackling potential security breaches. Moreover, the growing integration of AI technology to evaluate the risk of online transactions and aid businesses in automating and mitigating fraud has presented massive growth prospects for industry participants.
 

This fraud detection and prevention (FDP) market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2032, for the following segments:

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Market, By Component

• Solution
  • Fraud Analytics
  • Identity and Authentication
  • Governance, Risk and Compliance (GRC)
  • Monitoring and Reporting
• Service
  • Professional Service
  • Managed Service

Market, By Fraud

• External
• Internal

Market, By Application

• Money Laundering
• Credit and Debit Fraud
• Mobile Fraud
• Identity Threat
• Electronic Fraud

Market, By End-use

• Banking
• Insurance
• Government
• Healthcare
• E-commerce
• Education

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Netherlands
  • Denmark
  • Sweden
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Columbia
• MEA
  • South Africa
  • UAE
  • Israel
  • Saudi Arabia