Fraud Detection and Prevention (FDP) Market Size By Fraud (External, Internal), By Component (Solution {Fraud Analytics, Identity and Authentication, GRC, Monitoring and Reporting}, Service {Professional Service, Managed Service}), By Application (Money L

Fraud Detection and Prevention (FDP) Market Size By Fraud (External, Internal), By Component (Solution {Fraud Analytics, Identity and Authentication, GRC, Monitoring and Reporting}, Service {Professional Service, Managed Service}), By Application (Money Laundering, Credit and Debit Fraud, Mobile Fraud, Identity Threat, Electronic Fraud), By End-use (Banking, Insurance, Government, Healthcare, E-commerce, Education), COVID-19 Impact Analysis, Growth Potential, Regional Outlook, Competitive Market Share & Forecast, 2023 - 2032

Fraud Detection and Prevention (FDP) Market is slated to grow exponentially through 2032, owing to the introduction of new generation technologies including big data, data analytics, predictive modeling, deep learning, cloud computing, machine language, and AI. Organizations have been constantly implementing modern fraud detection and prevention technologies and risk management strategies to overcome fraudulent transactions. These strategies combine significant data sources with real-time monitoring and apply predictive and adaptive analytics techniques such as ML (Machine Learning) to create a risk of fraud score. Such factors are slated to have a positive impact on the market growth.

Although, the high cost linked with fraud detection and prevention solutions is one of the critical factors slated to hinder market expansion in the future. Nevertheless, the significant surge in big data analytics and AI deployment for developing several tools and software will positively impact the overall industry growth during 2023-2032.

Key providers in the fraud detection and prevention (FDP) industry are engaging in partnerships, mergers, and acquisitions and launching new products to stay competitive in the overall market. For instance, IBM recently launched a new generation mainframe with AI built into the chip to equip financial firms with the ability to conduct fraud analysis of 100% of their transactions in real-time.

Overall, the fraud detection and prevention (FDP) market is segmented in terms of fraud, component, application, end-use, and region.

Considering the fraud, the external fraud segment is anticipated to grow substantially throughout the estimated timeframe. The growth can be attributed to the increasing involvement of organized mafia and criminal groups in external frauds, further driving the adoption of FDP services among enterprises.

Based on the component, the service segment is expected to demonstrate growth by 2032 end, owing to the constant threat that organizations face for being exposed to substantial financial losses. According to the Association of Certified Fraud Examiners (ACFE), enterprises lose around 5% of financial revenue due to fraudulent behavior.

Considering the application, the mobile fraud segment is expected to exhibit over 26% CAGR between 2023-2032. The growth can be attributed to the rising phishing attacks, malicious phone apps, mobile spam bots, fake SMS/calls, and viruses that clone information from bank & payment applications to reveal sensitive account information.

By end-use, the banking segment will depict over 27% CAGR from 2023 to 2032. The growth can be attributed to the sector’s increased vulnerability to identity theft and breaches of confidential financial information.

Regionally, the North America FDP services market is anticipated to demonstrate a high growth rate during the estimated timeframe. Increased dependency on online payment platforms and rising penetration of mobile phones resulting in payment frauds, identity thefts, and other fraudulent activities will boost the market expansion in the future.