PUBLISHER: MarketsandMarkets | PRODUCT CODE: 2105652
PUBLISHER: MarketsandMarkets | PRODUCT CODE: 2105652
The fraud detection and prevention (FDP) market is projected to grow from USD 35.71 billion in 2026 to USD 80.01 billion by 2031, at a CAGR of 17.5% during the forecast period. The surge in synthetic identities and fraudulent activities, combined with an evolving regulatory environment, is accelerating demand for fraud detection and prevention solutions.
| Scope of the Report | |
|---|---|
| Years Considered for the Study | 2020-2031 |
| Base Year | 2025 |
| Forecast Period | 2026-2031 |
| Units Considered | Value (USD Million/Billion) |
| Segments | Fraud Type, Offering, Deployment Mode, Organization Size, Vertical, and Region |
| Regions covered | North America, Europe, Asia Pacific, Middle East & Africa, and Latin America |
Organizations are investing in AI-driven fraud analytics, identity verification, behavioral biometrics, and risk-based authentication to detect increasingly sophisticated fraud while meeting stringent regulatory requirements related to know your customer (KYC), anti-money laundering (AML), strong customer authentication (SCA), and data protection. These solutions strengthen compliance, reduce fraud losses, and enable secure digital onboarding and transactions across industries.

By fraud type, the insider fraud segment is expected to record the fastest growth rate during the forecast period.
The insider fraud segment is expected to register the highest growth during the forecast period as organizations face increasing risks from employees, contractors, vendors, and privileged users with authorized access to sensitive systems and financial data. The widespread adoption of hybrid work models, cloud platforms, and digital collaboration tools has expanded opportunities for insider threats involving financial fraud, data theft, account misuse, and policy violations. Organizations are increasingly deploying fraud analytics, user and entity behavior analytics (UEBA), identity intelligence, continuous authentication, and AI-driven anomaly detection to identify suspicious internal activities before they result in financial or reputational damage. Regulatory requirements related to data privacy, financial crime prevention, and corporate governance are also encouraging enterprises to strengthen internal fraud monitoring and access controls. Machine learning-based behavioral profiling enables organizations to distinguish legitimate employee behavior from malicious activities while reducing false positives and improving investigation efficiency. According to the LexisNexis Risk Solutions Cybercrime Report, published in March 2026, analysis of more than 116 billion online transactions during 2025 found that human-initiated attacks increased by 15% year over year, highlighting the growing importance of monitoring trusted users and strengthening identity-based fraud controls to mitigate insider-driven risks.
"By deployment mode, the on-premises segment is expected to account for the largest market share in 2026."
The on-premises deployment segment holds the largest market share as highly regulated industries continue to prioritize complete control over sensitive customer information, fraud models, and critical financial systems. Banking, financial services, government agencies, and large enterprises often maintain fraud detection platforms within their own infrastructure to meet stringent data residency, privacy, and compliance requirements while ensuring low latency and seamless integration with legacy systems. On-premises deployments also provide greater customization, governance, and security for mission-critical fraud detection workloads involving payment processing, customer authentication, and financial crime monitoring. Large organizations managing high transaction volumes prefer dedicated infrastructure to optimize performance and maintain operational resilience against evolving cyber threats. The availability of skilled internal security teams and established IT environments also supports continued investment in on-premises deployments despite increasing cloud adoption. According to Experian's 2025 US Identity & Fraud Report, published in July 2025, nearly 60% of businesses reported rising fraud-related losses, while approximately 70% planned to increase investments in fraud-prevention technologies, reflecting the continued modernization of enterprise fraud-detection environments, particularly among large, regulated organizations.
"By vertical, the BFSI segment is projected to hold the largest market share in 2026."
The BFSI segment holds the largest market share due to the industry's high exposure to payment fraud, identity theft, account takeover, synthetic identity fraud, money laundering, and digital banking attacks. Financial institutions process millions of transactions every day across online banking, mobile banking, digital payments, and card networks, making real-time fraud detection and identity verification critical for maintaining customer trust and regulatory compliance. Banks are increasingly investing in AI-driven fraud analytics, behavioral biometrics, risk-based authentication, and transaction monitoring platforms to reduce financial losses while improving customer experience. Growing adoption of instant payments, open banking, embedded finance, and digital wallets has expanded the fraud landscape, increasing the need for advanced fraud prevention technologies. Regulatory frameworks governing know your customer (KYC), anti-money laundering (AML), and payment security continue to accelerate technology adoption across the sector. According to the LexisNexis Risk Solutions Cybercrime Report, published in March 2026, account takeover attacks increased by 18% globally in 2025, while first-party fraud remained one of the most prevalent fraud types affecting financial institutions, underscoring the need for sustained investment in fraud detection and prevention solutions across the BFSI sector.
Breakdown of Primaries
Major vendors in the FDP market include Fiserv (US), LexisNexis Risk Solutions (US), TransUnion (US), FIS Global (US), NICE Actimize (US), Experian (Ireland), IBM (US), ACI Worldwide (US), SAS Institute (US), RSA Security (US), SAP (Germany), FICO (US), Microsoft (US), F5 (US), AWS (US), Bottomline Technologies (US), Genpact (Bermuda), Securonix (US), (US), Feedzai (Portugal), Caseware (Canada), (US), Signifyd (US), BioCatch (Israel), FRISS (Netherlands), MaxMind (US), DataVisor (US), Clefy (Italy), Gurucul (US), Riskified (Israel), Thomson Reuters (Canada), Sift (US), NoFraud (US), XTN Cognitive Security (Italy), Featurespace (UK), Equifax (US), Alfa Group (Italy), Ping Identity (US), GFT Technologies (Germany), GB Group (UK), Kroll (US), Alloy (US), SEON (Hungary), SpyCloud (US), Enzoic (US), Deduce (US), (US), Resistant Al (Czech Republic), Amani Technologies (UAE), Fugu (Singapore), Pipl (US), Agnovi (US), and Clari5 (Singapore).
The study includes an in-depth competitive analysis of the key players in the FDP market, their company profiles, recent developments, and key market strategies.
Research Coverage
The report segments the FDP market and forecasts its size based on fraud type (check fraud, identity fraud, insider fraud, investment fraud, payment fraud, insurance fraud, friendly fraud, and others), offering (solutions and services), functionality (real-time detection and fraud investigation and case management), deployment mode (on-premises, cloud, and hybrid), organization size (large enterprises and SMEs), vertical (BFSI, retail & eCommerce, government, healthcare, manufacturing, travel & transportation, real estate, telecommunications, and others), and region (North America, Europe, Asia Pacific, Middle East & Africa, and Latin America).
The study also includes an in-depth competitive analysis of the market's key players, their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.
Key Benefits of Buying the Report
The report will help market leaders/new entrants with information on the closest approximations of revenue numbers for the overall FDP market and its subsegments. This report will help stakeholders understand the competitive landscape and gain valuable insights to better position their businesses and plan suitable go-to-market strategies. The report also helps stakeholders understand the market pulse and provides information on key market drivers, restraints, challenges, and opportunities.