Fraud Detection and Prevention (FDP) Market Analysis

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.

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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.