Fraudulent activities are any illegal activities done willfully for personal or financial gain. Both individuals and companies are prone to such fraudulent activities, which can result in great financial losses. With the massive growth in the volume of data generated by various enterprises, the risk of fraudulent activities such as physical asset theft, information theft, financial theft, etc., has increased considerably.
As traditional methods of Fraud Detection have various limitations, they are being increasingly replaced by advanced techniques such as data mining, statistical modeling, and machine learning techniques. Fraud Detection and prevention systems are basically software applications that provide analytical solutions for the detection and prevention of fraudulent activities.
The global Fraud Detection and prevention market is expected to grow at a CAGR of 26% during 2019 to 2023 to reach USD 63.5 billion by 2023, from USD 19.5 billion in 2018. Fraudulent activities often lead to huge financial losses, which has prompted enterprises to adopt Fraud Detection and prevention solutions. This in turn, will fuel the market growth. Stringent laws and regulations will also drive the Fraud Detection and prevention market in the coming years.
Apart from these, growing implementation of big data analytics and cloud computing services, and rapid growth of mobile banking and internet banking have also increased the demand for Fraud Detection and prevention solutions. Among various sectors, the BFSI sector is more prone to frauds, and hence the demand for Fraud Detection solutions is more in this sector. So, an upsurge in electronic transactions and increasing incidence of cyber-attacks will give a major boost to the global Fraud Detection and prevention market.
North America has been playing a dominant role in the Fraud Detection and prevention market. However, the Asia-Pacific region has registered impressive growth in recent years. This can be mainly attributed to the increasing penetration of the internet and growing usage of mobile data for social media and mobile banking in the region.
The key players operating in the global Fraud Detection and prevention market are, IBM Corporation, SAP SE, BAE Systems, Oracle Corporation, SAS Institute, Fiserv, NICE Systems, FICO, ACI Worldwide, Friss, First Data, DXC Technology, MaxMind, Actimize Inc., Experian Plc, Dell Technologies, Easy Solutions, and Simility.