Market Trends of Fraud Detection And Prevention Industry
BFSI Sector to be the Largest End-user Industry
- Fraudulent activities in the BFSI industry have evolved over the decades. While it was previously limited to cheque frauds and wire frauds, with the growth of the cybersphere and the accompanying expansion of the cybercriminal realm, it has taken on more virtualized forms.
- The increasing technological penetration, coupled with digital channels such as Internet banking and mobile banking, are becoming prominent choices of customers for banking services, making it a crucial need for banks to leverage fraud prevention solutions.
- Fraud prevention and detection represent one of the biggest areas of concern for financial institutions and are likely to become prominent drivers of IT spending. Moreover, online transactions, insurance claims, and card-related frauds have been increasing the usage of these solutions in the insurance, banking, and financial services sectors.
- The potential risk of fraud has been one of the biggest in online and digital payments, and it is anticipated to grow with the availability of digital customer relationships as more companies offer online payments.
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Asia-Pacific is Expected to Hold Significant Market Share
- Digital transactions in North America and online banking are increasing remarkably, thus increasing the chances of fraud. Fraud detection and prevention solutions can help prevent any online breach of sensitive data and transactions. Rising fraud cases are expected to propel the market's growth over the predicted period.
- Cybercriminals are increasingly targeting businesses and medical institutions to gain the personal data of the victims. Personal data is often used for engineering attacks, which is more likely to trick the victim than traditional cyberattacks. In 2023, the number of data compromises in the United States stood at 3,205 cases. Meanwhile, over 353 million individuals were affected in the same year by data compromises, including data breaches, leakage, and exposure.
- The region has a strong foothold of fraud detection and prevention solution vendors contributing to the market's growth. Some include IBM Corporation, SAS Institute Inc., DXC Technology, RSA Security LLC, and Oracle Corporation.
- Various regional companies are continuously involved in product innovations to meet advanced cyber threat requirements. For instance, in November 2023, Abrigo, a provider of compliance, credit risk, and lending solutions for financial institutions, entered a strategic partnership with Mitek, a mobile deposit and fraud prevention player. This partnership provides community financial institutions the tools to combat financial crimes like check fraud.
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