Widespread adoption of big data analytics by leading key players will augment fraud detection and prevention market, states Converged Markets
Fraudulent activities within organizations led to an increase in the adoption of fraud detection and prevention solutions. Industries, such as BFSI, retail, real estate, healthcare, and manufacturing sector, require solutions which contribute to the exponential growth of the fraud detection and prevention market.
Converged Markets’ report, “Fraud Detection and Prevention Market, By Solution (Fraud Analytics, Authentication, GRC), Vertical (BFSI, Retail, Healthcare, Real Estate, Manufacturing), Application, Service, and Organization Size – Global Opportunity Analysis & Forecast to 2025,” states that the global fraud detection and prevention market is projected to grow approximately at USD 63.18 billion by 2025, at a CAGR of 19.23% from 2018 to 2025.
Fraud Detection and Prevention is Led by Digital Technology and Penetration of Smartphone
The fraud detection and prevention market has witnessed an exponential growth due to the increase in digital technology, penetration of smartphones, coupled with the growth of the e-commerce industry.
The USA witnesses an exponential growth due to the well-established healthcare, financial institutions, and retail industries. The country is a technologically driven and, many organizations face unusual patterns of fraudulent activities; this encourages vendors to adopt analytics solutions. According to the Co-founder of Simility, “Machine learning technology is made to discern unusual patterns of fraudulent activities.”
Authentication Solutions to Witness an Exponential Growth Rate on the backdrop of stringent cybersecurity regulations
In the fraud detection and prevention market by solution, fraud analytics solution is the largest segment due to the demand for big data analytics among the organizations to detect fraud insights in minimum time. Globally, the high growth for fraud analytics is mainly from the Asia-Pacific region, followed by RoW.
However, authentication solutions are anticipated to witness an exponential growth rate on the backdrop of stringent cybersecurity regulations. Single-factor authentication (SFA) and multi-factor authentication (MFA) are the two subsegments of the authentication solution in the fraud detection and prevention market. SMEs are among the major buyers of authentication solutions.
Asia-Pacific is expected to exhibit highest CAGR from 2018 to 2015
North America accounted for the largest market share due to the rapid expansion of mobile payments. It experienced the highest rate of information theft and money laundering issues within the companies, due to the rise in the adoption of advanced payment technology. Asia-Pacific is also expected to exhibit the highest CAGR, due to the rise in the use of electronic payment channels such as debit card, mobile app, and credit card.
Major Software Companies Utilize Big Data to Analyze Pattern and Behavior Complex Data
Increase in demand for big data analytics is one of the major factors for the growth of fraud detection and prevention market. Automated fraud detection collects useful information to reduce financial frauds through analysis and data mining of big data. Big software companies such as IBM, SAS, and FICO use big data to analyze pattern and behavior complex data.
Acquisitions are the most dominant strategy used by the key players
The key players in the market are IBM, SAS Institute, FICO, Experian, ACI Worldwide, NICE, BAE Systems, DXE Technology, Dell EMC, and Software AG. These companies utilize acquisitions, expansions & investments, and new product launches to strengthen their dominance. The acquisition is the most dominant strategy used by the key players; for instance, IBM acquired IRIS Analytics to boost its analytics and counter fraud technology portfolio.
The development was reported by prnewswire.co.in
