The market was valued at USD 15.79 billion in 2016 and is projected to reach USD 17.40 billion by 2022, recording a CAGR of 41.34% over the forecast period of 2017-2022.
Modern day business procedures rely on sophisticated technology. However, these advanced software and management systems do have loopholes. They can be cleverly manipulated by an expert, to gain benefits, such as, individuals accounting for fraud to achieve shortcomings in security and controls in business applications. Fraud has been on the rise and has become a major issue. Frauds are also incurring heavy losses of up to 8% of the annual revenues of some enterprises.
INCREASING ONLINE TRANSACTIONS DRIVE THE MARKET
The emergence of the e-banking and e-commerce industry resulted in a steep increase in the number of online transactions. With more people getting access to the internet through their smartphones and other portable devices, lower-tier cities and underdeveloped regions are expected to emerge as strong drivers of online shopping. After demonetization in India, the government declared a 400-1000% increase in the number of digital transactions. Personalized banking services for customers, such as, ATM kiosks, mobile banking, internet banking, and social media, are the driving forces of digital operations.
BANKING AND FINANCIAL SERVICE CAPTURE MAXIMUM SHARE
The BFSI sector is the main area of focus of fraudsters, owing to high value monetary transactions and card payments. An estimated 64% of revenue is lost through deliberate and planned falsification of policies and claims in the BFSI industry. Increasing number and amount of transactions, along with rapid technological advancements, have led to a staggering increase in fraud losses across the Banking, Financial Services & Insurance (BFSI) vertical. As the volume of online and card-related transactions is growing, the possibility of frauds has increased significantly, which has encouraged the industry to adopt and implement several technological solutions like FDP, to curb frauds and cut down on losses.
NORTH AMERICA ANTICIPATED TO BE THE LARGEST MARKET
The boom of the North American fraud detection and prevention market can be attributed to growing E-retailing, high rate of internet penetration, and a thriving healthcare analytic sector. The region is experiencing a high demand for healthcare units. Frauds in the healthcare sector have been constantly on the rise, especially in reimbursement transactions. The enormous increase in the bulk of data handled by enterprises has led to the adoption of fraud detection and prevention solutions, to protect critical data from attacks.
NOTABLE MARKET DEVELOPMENTS
Our report on fraud detection and prevention covers the following -