Key insights into this growing market have been offered by Fortune Business Insights in a report, titled “Fraud Detection and Prevention Market Size, Share and Global Trend By Deployment (Cloud & On-premises), By Service Type (Fraud Analytics & Authentication), By Industry Vertical (IT and Telecommunication, Retail, Consumer Electronics, Manufacturing, Automotive, Transportation and Logistics, Energy and Utilities) and Geography Forecast till 2026”. The report evaluates the factors that will play the most influential role in the growth of the market. Fraudulent activity can be understood as any kind of deception that is criminal in nature and is performed for financial or personal gain. The most rampant frauds are known to take place in the banking sector such as forging checks, phishing activities, stealing of credit and debit cards, the opening of fake accounts, and so on. The other sector where frauds have become commonplace is insurance. Here, frauds are mainly seen in the form of false insurance claims.
Advent of Cloud-based Computing to Aid Market Growth
The global fraud detection and prevention market is set to grow formidably in the wake of the rapidly developing cloud-based software solutions and advanced analytics. Cloud computing offers speedy fraud detection and prevention mechanisms for financial institutions, which has increased its demand all over the globe. One of the key benefits of cloud infrastructure is the multi-layered security it provides for the personal data of users. Moreover, it also enables the facilitation of secure online transactions. Advancements in big data analytics, artificial intelligence, and machine learning technologies enable organizations to pre-empt frauds and take the necessary steps to prevent them. As more and more industries and markets start recognizing the benefits of cloud-based security systems, their demand is expected to rise. As a result, the global fraud detection and prevention market will gain momentum in the forecast period.
Over-reliance on Cloud Software May Not be the Best Course of Action
While cloud-based solutions promise the highest quality of security infrastructure, they carry certain disadvantages. For example, since cloud computing is dependent on the internet, service downtime and outages are very real possibilities. In the same vein, with every piece of information being put online, the entire system is open to attacks such as hacking and phishing. While measures like the EU’s GDPR have been taken to ensure user privacy, not every form of data breach or privacy infringement can be foreseen. For example, recent cyberattacks such as WannaCry and the Equifax data breach were grim reminders of how vulnerable cloud-based systems are. These limiting factors can hinder the growth of the global fraud detection and prevention market.
Key Players Identified
The global fraud detection and prevention market is poised to become a competitive one due to its multi-dimensional nature and scope. The promising market is expected to attract innovative participants; some of them are already increasing their market presence through collaborations and new products. For example, in January 2018, US-based IBM and Denmark-based Maersk collaborated to develop a global trade platform using blockchain technology.
Fortune Business Insights identifies the following key players in the global fraud detection and prevention market: Dell Technologies, Bae Systems, IBM, SAS Institute, DXC Technology, FIS Global, and a few others.
North America to Lead the Charge
Generating revenue of USD 6414 million in 2018, North America is expected to hold a commanding position in the global fraud detection and prevention market in the forecast period. The rapid adoption of cloud-based computing across various sectors is seen to be the major driver in the US and Canada for this market.
The fast-paced growth of Indian and Chinese economies is expected to fuel the market in the Asia-Pacific region. The region generated a revenue of USD 3860.5 million in 2018 and as economies develop, the market is expected to grow in tandem. The primary reason cited for this growth rate is the rising investments in the adoption of advanced software solutions by companies for fraud detection and prevention purposes in the region.