Fraud Detection and Prevention Market Size, Trends and Growth Analysis by 2027

The global market for fraud detection and prevention is projected to expand significantly, increasing from approximately US$ 26,511.84 million in 2021 to around US$ 75,139.66 million by 2028. This growth represents a compound annual growth rate (CAGR) of 16.0% over the period from 2021 to 2028.

Financial institutions, particularly in the banking and financial services sectors, have been among the first to adopt technologies aimed at mitigating risks. These organizations face considerable threats due to the vast amounts of data exchanged online. A report by Facebook and BCG indicates that the adoption of online banking in India is expected to reach 150 million users by 2022, which consequently heightens the potential for fraudulent activities. As digital banking becomes more prevalent, it is crucial for financial entities to implement robust measures to protect transactions from fraud. Consequently, these institutions are now focusing not only on minimizing financial risks but also on enhancing their capabilities for real-time fraud detection.

With advancements in pattern recognition, fraud detection systems are undergoing significant transformations. The integration of machine learning (ML) technologies has greatly enhanced the capabilities of artificial intelligence (AI) in safeguarding systems. ML can effectively protect organizations from internal fraud and identify anomalies that may indicate data breaches.

The COVID-19 pandemic, particularly in 2020, saw a dramatic rise in fraudulent activities. According to a phishing report by F5, Inc., a security solutions provider based in the United States, phishing incidents surged by 15%. The report also highlighted a staggering 220% year-over-year increase in phishing attacks. As a result, the fraud detection and prevention market is expected to experience significant growth during the forecast period.

The pandemic has led to widespread lockdowns, which in turn have accelerated the adoption of digital technologies. Factors such as remote work (WFH) and increased online transactions through banking applications or mobile wallets have resulted in over 60-70% of consumers utilizing one or more digital platforms. However, this shift has also created new opportunities for fraudsters and money launderers, who can exploit digital channels to access sensitive information. This situation has further fueled the demand for advanced fraud detection and prevention solutions.

Several prominent companies are active in the fraud detection and prevention sector, including Fiserv, Inc., Paypal, F5, SAP SE, and SAS Institute Inc.. The report also includes findings from secondary research on other significant players in the global fraud detection and prevention market.

The overall market size for fraud detection and prevention has been determined through a combination of primary and secondary research methodologies. The research process commenced with extensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data relevant to the market. This approach also aims to provide a comprehensive overview and forecast of the fraud detection and prevention market across various segments and regions.

Additionally, numerous primary interviews have been conducted with industry stakeholders and experts to validate the collected data and gain deeper analytical insights. Participants in this research include industry professionals such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the fraud detection and prevention domain.