eCommerce Fraud Detection & Prevention Market by Fraud Type (Card Testing, Credit Card Fraud, Friendly Fraud), Organization Size (Large Enterprises, Small & Medium-sized Enterprises), Industry, Deployment - Global Forecast 2024-2030

eCommerce Fraud Detection & Prevention Market by Fraud Type (Card Testing, Credit Card Fraud, Friendly Fraud), Organization Size (Large Enterprises, Small & Medium-sized Enterprises), Industry, Deployment - Global Forecast 2024-2030

The eCommerce Fraud Detection & Prevention Market size was estimated at USD 47.93 billion in 2023 and expected to reach USD 57.51 billion in 2024, at a CAGR 21.45% to reach USD 186.82 billion by 2030.

eCommerce fraud detection and prevention refer to the strategies, solutions, and processes that online businesses implement to protect against unauthorized transactions and various forms of deceitful activities that can occur in the digital space. With the increasing volume of online transactions, the importance of these measures has been amplified, aiming to identify fraudulent behavior before financial harm is inflicted on both consumers and businesses. Increasing penetration of the internet, mobile commerce, and digital payment methods has accelerated the need for sophisticated fraud prevention mechanisms. The market is expected to grow further as businesses continue to invest in advanced technologies to safeguard their operations and customer data. However, overly sensitive fraud detection systems can lead to high rates of false positives, affecting customer satisfaction and sales. Market players are working on developing adaptive, self-learning systems to anticipate and counteract emerging fraud tactics. They are also exploring the use of fingerprint, facial recognition, and other biometric technologies to enhance user verification processes. Utilizing blockchain to create decentralized and transparent records of transactions can make frauds easier to detect and harder to perpetrate.

Regional Insights

In the Americas, especially in the United States and Canada, fraud detection and prevention tools are widespread due to the high volume of eCommerce transactions. Retailers and online businesses in this region actively invest in advanced fraud prevention solutions, utilizing AI and machine learning technologies to analyze customer behavior and detect fraudulent activities. Companies in the Americas are at the forefront of technological innovation, with a strong focus on R&D activities to advance fraud detection capabilities and protect against sophisticated cyber threats. The APAC region has seen a rapid increase in eCommerce activities, with countries such as China, Japan, India, and Australia leading the way. Many businesses in the APAC are now adopting mobile-centric fraud prevention strategies due to the prevalence of mobile commerce in this region. In APAC, local companies are emerging to meet the growing demand for fraud prevention solutions. European countries, with their stringent data protection laws such as GDPR, require fraud prevention solutions that comply with these regulations. EMEA hosts a mixture of established global companies and smaller, specialized providers that produce fraud detection and prevention software. European countries are known for producing high-quality, privacy-centric solutions that comply with regional regulations. In the Middle East and Africa, the market for fraud detection is emerging, with an increasing number of businesses beginning to recognize the importance of these systems.

Market Insights

Market Dynamics

The market dynamics represent an ever-changing landscape of the eCommerce Fraud Detection & Prevention Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

Market Drivers

• Growing Number of Identity Theft and Merchant Scams
• Increasing Customer Base and Transactions on E-commerce Platforms

Market Restraints

• Limited Awareness and Availability of the Skilled Security Professionals

Market Opportunities

• Emergence of Online Businesses and Adoption of Security Solutions in SMEs
• Introduction of Advanced eCommerce Fraud Detection Systems

Market Challenges

• Rising Complexity of Frauds

Market Segmentation Analysis

• Fraud Type: Increasing cases of phishing and identity theft with the rising number of eCommerce purchases
• Organization Type: Need for comprehensive eCommerce fraud detection plans for large enterprises
• Industry: Exponential need for advanced fraud detection & prevention by banking and retail industries
• Deployment: Emerging popularity of cloud-based eCommerce fraud detection and prevention to attain improved flexibility and scalability

Market Disruption Analysis

• Porter’s Five Forces Analysis
• Value Chain & Critical Path Analysis
• Pricing Analysis
• Technology Analysis
• Patent Analysis
• Trade Analysis
• Regulatory Framework Analysis

FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the eCommerce Fraud Detection & Prevention Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the eCommerce Fraud Detection & Prevention Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments

Namaste Credit Partners with Microsoft Azure to Launch Proprietary Fraud Detection Capabilities

Namaste Credit announced a pivotal strategic alliance with Microsoft Azure via the STAB Program managed by G7 CR Technologies, a Noventiq company. This partnership heralds a significant advancement in combating financial fraud within the finance industry through the integration of AI and machine learning technologies.

CellPoint Digital and Riskified Partner to Enhance Fraud Protection for Airlines and Travel Merchants with Industry-Leading Payments Solution

CellPoint Digital formed a strategic alliance with Riskified, an expert in eCommerce fraud prevention and risk intelligence. This partnership is set to advance transaction approval rates for airlines and travel merchants while simultaneously lowering operational costs. Riskified's state-of-the-art eCommerce fraud management system, powered by sophisticated AI and machine learning technologies, delivers a robust defense against fraudulent activities, permitting legitimate transactions to proceed with ease.

Chargeflow, Which Taps AI to Fight Chargebacks, Raises USD 14 Million

ChargeFlow has secured USD 14 million in funding through a seed financing round spearheaded by OpenView Venture Partners. The company differentiates itself by harnessing advanced artificial intelligence to craft bespoke 'dispute evidence,' such as delivery confirmation slips and authenticated orders, efficiently contesting each chargeback with banks or credit card issuers. ChargeFlow's proprietary machine learning algorithms aim to safeguard online merchants from the pernicious effects of chargeback fraud and streamline dispute resolutions.

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the eCommerce Fraud Detection & Prevention Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles

The report delves into recent significant developments in the eCommerce Fraud Detection & Prevention Market, highlighting leading vendors and their innovative profiles. These include ACI Worldwide, Inc., Blackhawk Network Holdings, Inc., Bolt Financial, Inc., Chargeflow, Inc., ClearSale LLC, DXC Technology Company, Ekata, Equifax Inc., F5, Inc., Fiserv, Inc., Forter, Ltd., Fraud.com, Fraud.net Inc., Hexasoft Development Sdn. Bhd., Infosys Limited, International Business Machines Corporation, LexisNexis Risk Solutions Group, Lyra, MarkMonitor Inc., NortonLifeLock Inc., PayPal Holdings, Inc., Radial, Inc., Riskified, Ltd., RSA Security LLC, SEON Technologies Ltd., SHIELD AI Technologies Pte. Ltd., Sift Science, Inc., Signifyd Inc., Software AG, Stripe, Inc., Subuno, and TransUnion LLC.

Market Segmentation & Coverage

This research report categorizes the eCommerce Fraud Detection & Prevention Market to forecast the revenues and analyze trends in each of the following sub-markets:

• Fraud Type
• Card Testing
• Credit Card Fraud
• Friendly Fraud
• Identity Theft
• Merchant Fraud
• Phishing
• Refund Fraud
• Organization Size
• Large Enterprises
• Small & Medium-sized Enterprises
• Industry
• Aerospace & Defense
• Automotive & Transportation
• Banking, Financial Services & Insurance
• Building, Construction & Real Estate
• Consumer Goods & Retail
• Education
• Energy & Utilities
• Government & Public Sector
• Healthcare & Life Sciences
• Information Technology
• Manufacturing
• Media & Entertainment
• Telecommunication
• Travel & Hospitality
• Deployment
• On-Cloud
• On-Premise
• Region
• Americas
• Argentina
• Brazil
• Canada
• Mexico
• United States
• California
• Florida
• Illinois
• New York
• Ohio
• Pennsylvania
• Texas
• Asia-Pacific
• Australia
• China
• India
• Indonesia
• Japan
• Malaysia
• Philippines
• Singapore
• South Korea
• Taiwan
• Thailand
• Vietnam
• Europe, Middle East & Africa
• Denmark
• Egypt
• Finland
• France
• Germany
• Israel
• Italy
• Netherlands
• Nigeria
• Norway
• Poland
• Qatar
• Russia
• Saudi Arabia
• South Africa
• Spain
• Sweden
• Switzerland
• Turkey
• United Arab Emirates
• United Kingdom

Please Note: PDF & Excel + Online Access - 1 Year