Fraud Detection and Prevention Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Component, By Solutions, By Application, By Industry Vertical, By Region & Competition, 2021-2031F

Description

The Global Fraud Detection and Prevention Market is projected to expand significantly, rising from USD 38.73 Billion in 2025 to USD 106.48 Billion by 2031, reflecting a CAGR of 18.36%. This market encompasses analytical solutions and services aimed at identifying and neutralizing illicit activities within financial and commercial industries. Primary factors propelling this growth include the increasing volume of digital payments, which necessitates real-time monitoring, and strict regulatory requirements such as Anti-Money Laundering (AML) mandates. Furthermore, the urgent need to mitigate direct financial losses and safeguard brand integrity drives enterprises to implement these security measures, separate from broader technological trends affecting the sector.

Market Overview
Forecast Period	2027-2031
Market Size 2025	USD 38.73 Billion
Market Size 2031	USD 106.48 Billion
CAGR 2026-2031	18.36%
Fastest Growing Segment	Solutions
Largest Market	North America

A major obstacle hindering market expansion is the handling of false positives, which interfere with legitimate client interactions and escalate operational expenses. This friction demands a careful equilibrium between robust security and a seamless user experience. Emphasizing the financial impact of these risks, the Association of Certified Fraud Examiners estimated in 2024 that organizations lost 5% of their annual revenue due to occupational fraud. This statistic highlights the essential need for accurate detection mechanisms that protect revenue streams while ensuring operations remain uninterrupted.

Market Driver

The incorporation of generative artificial intelligence into criminal tactics has greatly complicated cyberattacks, necessitating the deployment of advanced verification technologies. As fraudsters employ deepfakes and synthetic identity manipulation to circumvent standard security measures, there is a pressing requirement for behavioral analytics and liveness detection. This technological evolution fuels the adoption of platforms designed to spot AI-generated anomalies before they affect financial institutions. According to the 'Sumsub Identity Fraud Report 2024' published by Sumsub in November 2024, global deepfake incidents surged by 245% year-over-year, underscoring the rapid advancement of these threats and the resulting market need for sophisticated countermeasures.

Concurrently, the rapid increase in global digital payment volumes demands strong fraud prevention systems to secure the growing transaction ecosystem. As consumers increasingly use mobile wallets and real-time payment infrastructures, the vulnerability to financial crimes expands, resulting in significant monetary losses. Consequently, organizations are prioritizing real-time monitoring systems to stop unauthorized transactions without disrupting legitimate users. According to the Federal Trade Commission's 'Consumer Sentinel Network Data Book 2023' released in February 2024, consumers reported fraud losses exceeding $10 billion in 2023, setting a new record. To address this volume, major networks are utilizing vast resources; for instance, Visa reported in 2024 that it successfully prevented $40 billion in fraudulent activity the previous year, illustrating the massive scale of current prevention initiatives.

Market Challenge

Managing false positives remains a significant barrier to the expansion of the Global Fraud Detection and Prevention Market. This challenge causes considerable operational friction, requiring businesses to intervene frequently to prevent the unfair decline of legitimate customers. When detection systems act too aggressively, they produce high rejection rates for valid transactions, leading to immediate revenue loss and enduring harm to brand loyalty. As a result, organizations often hesitate to fully implement automated security solutions, fearing that the financial detriment of turning away good customers will exceed the benefits of fraud prevention, thereby slowing market adoption rates as companies struggle to justify investments that might impede the consumer journey.

The economic consequences of this lack of precision are both measurable and severe. According to the Merchant Risk Council, global merchants rejected approximately 6% of annual eCommerce orders in 2024 due to suspected fraud, with false positive rates often falling between 2% and 10%. This data highlights the scale of the issue; when valid orders are consistently blocked, the ensuing friction pushes consumers toward competitors. This dynamic compels enterprises to restrict their dependence on stringent detection technologies, which directly curbs the market's potential for growth.

Market Trends

The convergence of Fraud and AML (FRAML) operations is reshaping the market by breaking down traditional barriers between fraud detection and anti-money laundering compliance. Financial institutions are increasingly merging these functions to establish a comprehensive view of risk, enabling the simultaneous detection of complex financial crimes across both areas while optimizing resource use. This shift is driven by the necessity to eliminate redundant investigative work and lower operational costs tied to maintaining separate compliance teams. Demonstrating the economic efficiency of this approach, Hawk AI reported in April 2025 in 'Trends in Fraud & AML Convergence at US Mid-Market Banks & Credit Unions' that 77% of surveyed institutions anticipate saving over $1 million within the first five years of unifying their fraud and AML programs.

Mitigating Authorized Push Payment (APP) scams has become a key market focus, prompting vendors to create solutions that target social engineering rather than solely technical breaches. Unlike unauthorized fraud, APP scams involve manipulating victims into approving transfers, requiring intent-based detection systems and real-time psychological interventions during the payment process. This focus is growing due to regulatory updates that increasingly place liability for these losses on payment service providers, encouraging the use of advanced friction measures. According to UK Finance's 'Annual Fraud Report 2025' released in May 2025, the total volume of authorized push payment fraud cases fell by 20% in 2024, indicating the success of these targeted consumer protection strategies.

Key Market Players

Iovation Inc
IBM Corporation
Cardinal Commerce Corporation
Oracle Corporation
Experian PLC
PayPal Holdings Inc
Distil Networks Inc.
Hitachi, Ltd.
NovAtel Inc.
Comtech Telecommunications Corp.

Report Scope

In this report, the Global Fraud Detection and Prevention Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Fraud Detection and Prevention Market, By Component

Services
Solutions

Fraud Detection and Prevention Market, By Solutions

Fraud Analytics
Authentication
Governance
Risk
Compliance

Fraud Detection and Prevention Market, By Application

Identity theft
Money Laundering
Payment Fraud
Others

Fraud Detection and Prevention Market, By Industry Vertical

BFSI
Real Estate
Government
Manufacturing
IT & Telecom
Energy & Utilities
Telecommunications
Retail
Others

Fraud Detection and Prevention Market, By Region

North America
- United States
- Canada
- Mexico
Europe
- France
- United Kingdom
- Italy
- Germany
- Spain
Asia Pacific
- China
- India
- Japan
- Australia
- South Korea
South America
- Brazil
- Argentina
- Colombia
Middle East & Africa
- South Africa
- Saudi Arabia
- UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Fraud Detection and Prevention Market.

Available Customizations:

Global Fraud Detection and Prevention Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

1. Product Overview

1.1. Market Definition
1.2. Scope of the Market
- 1.2.1. Markets Covered
- 1.2.2. Years Considered for Study
- 1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study
2.2. Baseline Methodology
2.3. Key Industry Partners
2.4. Major Association and Secondary Sources
2.5. Forecasting Methodology
2.6. Data Triangulation & Validation
2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market
3.2. Overview of Key Market Segmentations
3.3. Overview of Key Market Players
3.4. Overview of Key Regions/Countries
3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Fraud Detection and Prevention Market Outlook

5.1. Market Size & Forecast
- 5.1.1. By Value
5.2. Market Share & Forecast
- 5.2.1. By Component (Services, Solutions)
- 5.2.2. By Solutions (Fraud Analytics, Authentication, Governance, Risk, Compliance)
- 5.2.3. By Application (Identity theft, Money Laundering, Payment Fraud, Others)
- 5.2.4. By Industry Vertical (BFSI, Real Estate, Government, Manufacturing, IT & Telecom, Energy & Utilities, Telecommunications, Retail, Others)
- 5.2.5. By Region
- 5.2.6. By Company (2025)
5.3. Market Map

6. North America Fraud Detection and Prevention Market Outlook

6.1. Market Size & Forecast
- 6.1.1. By Value
6.2. Market Share & Forecast
- 6.2.1. By Component
- 6.2.2. By Solutions
- 6.2.3. By Application
- 6.2.4. By Industry Vertical
- 6.2.5. By Country
6.3. North America: Country Analysis
- 6.3.1. United States Fraud Detection and Prevention Market Outlook
  - 6.3.1.1. Market Size & Forecast
    - 6.3.1.1.1. By Value
  - 6.3.1.2. Market Share & Forecast
    - 6.3.1.2.1. By Component
    - 6.3.1.2.2. By Solutions
    - 6.3.1.2.3. By Application
    - 6.3.1.2.4. By Industry Vertical
- 6.3.2. Canada Fraud Detection and Prevention Market Outlook
  - 6.3.2.1. Market Size & Forecast
    - 6.3.2.1.1. By Value
  - 6.3.2.2. Market Share & Forecast
    - 6.3.2.2.1. By Component
    - 6.3.2.2.2. By Solutions
    - 6.3.2.2.3. By Application
    - 6.3.2.2.4. By Industry Vertical
- 6.3.3. Mexico Fraud Detection and Prevention Market Outlook
  - 6.3.3.1. Market Size & Forecast
    - 6.3.3.1.1. By Value
  - 6.3.3.2. Market Share & Forecast
    - 6.3.3.2.1. By Component
    - 6.3.3.2.2. By Solutions
    - 6.3.3.2.3. By Application
    - 6.3.3.2.4. By Industry Vertical

7. Europe Fraud Detection and Prevention Market Outlook

7.1. Market Size & Forecast
- 7.1.1. By Value
7.2. Market Share & Forecast
- 7.2.1. By Component
- 7.2.2. By Solutions
- 7.2.3. By Application
- 7.2.4. By Industry Vertical
- 7.2.5. By Country
7.3. Europe: Country Analysis
- 7.3.1. Germany Fraud Detection and Prevention Market Outlook
  - 7.3.1.1. Market Size & Forecast
    - 7.3.1.1.1. By Value
  - 7.3.1.2. Market Share & Forecast
    - 7.3.1.2.1. By Component
    - 7.3.1.2.2. By Solutions
    - 7.3.1.2.3. By Application
    - 7.3.1.2.4. By Industry Vertical
- 7.3.2. France Fraud Detection and Prevention Market Outlook
  - 7.3.2.1. Market Size & Forecast
    - 7.3.2.1.1. By Value
  - 7.3.2.2. Market Share & Forecast
    - 7.3.2.2.1. By Component
    - 7.3.2.2.2. By Solutions
    - 7.3.2.2.3. By Application
    - 7.3.2.2.4. By Industry Vertical
- 7.3.3. United Kingdom Fraud Detection and Prevention Market Outlook
  - 7.3.3.1. Market Size & Forecast
    - 7.3.3.1.1. By Value
  - 7.3.3.2. Market Share & Forecast
    - 7.3.3.2.1. By Component
    - 7.3.3.2.2. By Solutions
    - 7.3.3.2.3. By Application
    - 7.3.3.2.4. By Industry Vertical
- 7.3.4. Italy Fraud Detection and Prevention Market Outlook
  - 7.3.4.1. Market Size & Forecast
    - 7.3.4.1.1. By Value
  - 7.3.4.2. Market Share & Forecast
    - 7.3.4.2.1. By Component
    - 7.3.4.2.2. By Solutions
    - 7.3.4.2.3. By Application
    - 7.3.4.2.4. By Industry Vertical
- 7.3.5. Spain Fraud Detection and Prevention Market Outlook
  - 7.3.5.1. Market Size & Forecast
    - 7.3.5.1.1. By Value
  - 7.3.5.2. Market Share & Forecast
    - 7.3.5.2.1. By Component
    - 7.3.5.2.2. By Solutions
    - 7.3.5.2.3. By Application
    - 7.3.5.2.4. By Industry Vertical

8. Asia Pacific Fraud Detection and Prevention Market Outlook

8.1. Market Size & Forecast
- 8.1.1. By Value
8.2. Market Share & Forecast
- 8.2.1. By Component
- 8.2.2. By Solutions
- 8.2.3. By Application
- 8.2.4. By Industry Vertical
- 8.2.5. By Country
8.3. Asia Pacific: Country Analysis
- 8.3.1. China Fraud Detection and Prevention Market Outlook
  - 8.3.1.1. Market Size & Forecast
    - 8.3.1.1.1. By Value
  - 8.3.1.2. Market Share & Forecast
    - 8.3.1.2.1. By Component
    - 8.3.1.2.2. By Solutions
    - 8.3.1.2.3. By Application
    - 8.3.1.2.4. By Industry Vertical
- 8.3.2. India Fraud Detection and Prevention Market Outlook
  - 8.3.2.1. Market Size & Forecast
    - 8.3.2.1.1. By Value
  - 8.3.2.2. Market Share & Forecast
    - 8.3.2.2.1. By Component
    - 8.3.2.2.2. By Solutions
    - 8.3.2.2.3. By Application
    - 8.3.2.2.4. By Industry Vertical
- 8.3.3. Japan Fraud Detection and Prevention Market Outlook
  - 8.3.3.1. Market Size & Forecast
    - 8.3.3.1.1. By Value
  - 8.3.3.2. Market Share & Forecast
    - 8.3.3.2.1. By Component
    - 8.3.3.2.2. By Solutions
    - 8.3.3.2.3. By Application
    - 8.3.3.2.4. By Industry Vertical
- 8.3.4. South Korea Fraud Detection and Prevention Market Outlook
  - 8.3.4.1. Market Size & Forecast
    - 8.3.4.1.1. By Value
  - 8.3.4.2. Market Share & Forecast
    - 8.3.4.2.1. By Component
    - 8.3.4.2.2. By Solutions
    - 8.3.4.2.3. By Application
    - 8.3.4.2.4. By Industry Vertical
- 8.3.5. Australia Fraud Detection and Prevention Market Outlook
  - 8.3.5.1. Market Size & Forecast
    - 8.3.5.1.1. By Value
  - 8.3.5.2. Market Share & Forecast
    - 8.3.5.2.1. By Component
    - 8.3.5.2.2. By Solutions
    - 8.3.5.2.3. By Application
    - 8.3.5.2.4. By Industry Vertical

9. Middle East & Africa Fraud Detection and Prevention Market Outlook

9.1. Market Size & Forecast
- 9.1.1. By Value
9.2. Market Share & Forecast
- 9.2.1. By Component
- 9.2.2. By Solutions
- 9.2.3. By Application
- 9.2.4. By Industry Vertical
- 9.2.5. By Country
9.3. Middle East & Africa: Country Analysis
- 9.3.1. Saudi Arabia Fraud Detection and Prevention Market Outlook
  - 9.3.1.1. Market Size & Forecast
    - 9.3.1.1.1. By Value
  - 9.3.1.2. Market Share & Forecast
    - 9.3.1.2.1. By Component
    - 9.3.1.2.2. By Solutions
    - 9.3.1.2.3. By Application
    - 9.3.1.2.4. By Industry Vertical
- 9.3.2. UAE Fraud Detection and Prevention Market Outlook
  - 9.3.2.1. Market Size & Forecast
    - 9.3.2.1.1. By Value
  - 9.3.2.2. Market Share & Forecast
    - 9.3.2.2.1. By Component
    - 9.3.2.2.2. By Solutions
    - 9.3.2.2.3. By Application
    - 9.3.2.2.4. By Industry Vertical
- 9.3.3. South Africa Fraud Detection and Prevention Market Outlook
  - 9.3.3.1. Market Size & Forecast
    - 9.3.3.1.1. By Value
  - 9.3.3.2. Market Share & Forecast
    - 9.3.3.2.1. By Component
    - 9.3.3.2.2. By Solutions
    - 9.3.3.2.3. By Application
    - 9.3.3.2.4. By Industry Vertical

10. South America Fraud Detection and Prevention Market Outlook

10.1. Market Size & Forecast
- 10.1.1. By Value
10.2. Market Share & Forecast
- 10.2.1. By Component
- 10.2.2. By Solutions
- 10.2.3. By Application
- 10.2.4. By Industry Vertical
- 10.2.5. By Country
10.3. South America: Country Analysis
- 10.3.1. Brazil Fraud Detection and Prevention Market Outlook
  - 10.3.1.1. Market Size & Forecast
    - 10.3.1.1.1. By Value
  - 10.3.1.2. Market Share & Forecast
    - 10.3.1.2.1. By Component
    - 10.3.1.2.2. By Solutions
    - 10.3.1.2.3. By Application
    - 10.3.1.2.4. By Industry Vertical
- 10.3.2. Colombia Fraud Detection and Prevention Market Outlook
  - 10.3.2.1. Market Size & Forecast
    - 10.3.2.1.1. By Value
  - 10.3.2.2. Market Share & Forecast
    - 10.3.2.2.1. By Component
    - 10.3.2.2.2. By Solutions
    - 10.3.2.2.3. By Application
    - 10.3.2.2.4. By Industry Vertical
- 10.3.3. Argentina Fraud Detection and Prevention Market Outlook
  - 10.3.3.1. Market Size & Forecast
    - 10.3.3.1.1. By Value
  - 10.3.3.2. Market Share & Forecast
    - 10.3.3.2.1. By Component
    - 10.3.3.2.2. By Solutions
    - 10.3.3.2.3. By Application
    - 10.3.3.2.4. By Industry Vertical

11. Market Dynamics

11.1. Drivers
11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)
12.2. Product Launches (If Any)
12.3. Recent Developments

13. Global Fraud Detection and Prevention Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry
14.2. Potential of New Entrants
14.3. Power of Suppliers
14.4. Power of Customers
14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Iovation Inc
- 15.1.1. Business Overview
- 15.1.2. Products & Services
- 15.1.3. Recent Developments
- 15.1.4. Key Personnel
- 15.1.5. SWOT Analysis
15.2. IBM Corporation
15.3. Cardinal Commerce Corporation
15.4. Oracle Corporation
15.5. Experian PLC
15.6. PayPal Holdings Inc
15.7. Distil Networks Inc.
15.8. Hitachi, Ltd.
15.9. NovAtel Inc.
15.10. Comtech Telecommunications Corp.