Fraud Detection And Prevention market COVID-19 Impact, Trends & Business Statistics By 2030

Posted by Mrudula Anil Karmarkar on December 4th, 2023

San Francisco, 02 December 2023: The ReportFraud Detection And Prevention MarketSize, Share & Trends Analysis Report By Component, By Solution, By Service, By Application, By Organization Size, By Vertical, By Region, And Segment Forecasts, 2023 - 2030

The proliferation of smartphones and the continued rollout of high-speed internet networks has triggered the adoption of mobile banking practices. Mobile banking helps reduce the crowds at banks and allows users to transact irrespective of location. According to a GSMA report, nearly 300 million individuals got connected for the first time to mobile internet in 2018, thereby taking the total global connected population to over 3.5 billion. While mobile-based payment applications, such as Paytm, Apple Pay, Google Pay, and PayPal, among others, gained traction in line with the rising number of smartphone users, these applications also emerged as the major targets of fraudsters, thereby prompting banks to offer online banking services and payment services companies to opt for fraud detection and prevention solutions to counter fraudsters’ intrusion threats and save the users from monetary losses.

The outbreak of the COVID-19 pandemic in 2020 has triggered the adoption of mobile banking services as banking service users prefer to avoid travel and human contact within bank premises. MX, a digital transformation platform for credit unions, banks, and fintech, revealed new research findings related to consumer spending and mobile banking adoption amid the economic uncertainty stemming from the COVID-19 pandemic. The data released in April 2020 has revealed a 50% increase in mobile banking engagement to control finances and plan the individual economic future. While the adoption of mobile banking is rising significantly, mobile banking is also getting potentially vulnerable to fraudulent activities, such as account takeovers, carrier data breaches, call center fraud, subscription fraud, and phishing, among others, thereby driving the demand for fraud detection and prevention solutions over the forecast period.

Some of the major factors driving the growth of the market include increased sophistication of cyberattacks, increased online fraud, and a growing preference for advanced analytics for the identification of threat patterns, among others. Online fraud risks have been increasing in line with the rising popularity of B2C, B2B, and C2C e-commerce transactions, which often involve a mutual exchange of critical information, identity information, and personal data of individuals and enterprises.

Furthermore, the boom in mobile gaming and the growing use of social media also adds to the risks of subsequent fraud. While frauds are getting more sophisticated, the losses from these attacks are also increasing. An analysis of over 44 billion events across 800 million active users globally by Help Net Security revealed a rapid increase in the complexity of emerging attacks. This has triggered the need for a strong emphasis on contextual detection strategies capable of proactively thwarting intrusions before any potential losses.

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Financial services remain the most vulnerable to online fraud, such as account takeovers, carried out using a complex combination of manual and bot-powered methods. Cases of social media fraud are also increasingly detected in the form of fake registrations and fake installs, which are difficult to track due to the large volumes involved. The looming glitches in detecting and preventing fraud often lead to reputational and financial losses, such as eroded trust, increased operational costs, and revenue and asset losses for individuals and enterprises. The rising complexity and the increasing number of frauds have triggered the demand for advanced fraud detection and prevention solutions that can potentially render a detailed understanding of user behavior patterns. At the same time, a 360-degree view of data can also prove effective in confronting online fraud at a time when internet services and digital data are increasing.

Fraud Detection And Prevention Market Report Highlights

• The service segment of the market by component is projected to witness the highest growth rate over 2023-2030. Organizations in developing economies are increasingly implementing robust fraud prevention strategies. Organizations require integration, consulting, training, and support services from fraud prevention service providers to implement a robust framework. The need for such professional consulting and other third-party services to detect fraud in real-time is expected to drive the segment growth over the forecast period
• The fraud analytics segment of the market by solution is projected to witness the highest growth rate over 2023-2030. Applications of such predictive and preventive analytical tools help enterprises take essential remediation measures. The potential benefits offered by the solutions are expected to drive the segment’s growth over the forecast period
• The managed services segment of the market by service is projected to witness the highest growth rate over 2023-2030. Managed service providers monitor business transactions and mines unusual user behavior in real-time across big data generated across all touchpoints driving its adoption
• The identity theft segment is projected to have the highest growth rate over the forecast period. Identity theft practices increase as criminals adapt to the foiling authentication process, thereby driving its growth
• The large enterprise segment is projected to occupy the largest share of the market by 2030, holding more than 70%of the market share. Fraudulent activities ranging from phishing and money laundering to distributed denial-of-service are prevalent among large enterprises, and such attacks could negatively impact business profit
• By vertical, the retail & e-commerce segment is projected to witness the highest growth rate over the forecast period, owing to an increasing need to protect customer information, including financial information such as credit card details and bank account details, among others. This has resulted in the broader adoption of fraud detection and prevention among retail & e-commerce vertical 

Fraudsters often keep changing their intrusion methods by using a combination of new and conventional methods to escape any detection traps. They also make sure to avoid repeating the processes of intrusion. Hence, advanced fraud detection solutions should be capable of monitoring the data in real time and analyzing the historical data to identify the pattern of attacks. DataVisor’s Unsupervised Machine Learning (UML) Engine is one such solution that can potentially identify the correlated group of malicious users sharing similar attributes. The traditional approach of fraud detection typically includes rule-based and supervised machine learning that constantly updates the model and is found to be less effective in detecting various sophisticated fraudulent attacks. Hence, updated fraud detection and prevention solutions based on the latest technologies are being aggressively adopted to arrest financial and reputational losses for individuals and enterprises.

Fraud Detection And Prevention Market Report Scope

Fraud detection and prevention rely, to a large extent, on the ability to identify threat patterns and develop suitable solutions capable of protecting enterprises from recurring attacks. Although business intelligence (BI) tools have been used conventionally to summarize the large volumes of data churned every quarter in any particular business, these conventional analytics methods cannot provide in-depth insights on a granular level to predict possible outcomes. Hence, advanced analytics tools, such as predictive analytics, data mining, big data analytics, and machine learning, are increasingly preferred to examine large volumes of data and extract patterns showcasing various trends across various industries on regional and global levels.

List of Key Players in the Fraud Detection And Prevention Market

• ACI Worldwide, Inc.
• AltexSoft
• BAE Systems
• Dell Inc.
• Equifax, Inc.
• Experian plc
• Fiserv, Inc.
• IBM
• NICE Ltd.
• Oracle
• SAP SE