Global: Fraud detection and prevention market to hit USD 100 bln by 2027

A research study by Global Market Insights has shown that fraud detection and prevention (FDP) market is expected to surpass USD 100 billion by 2027.

The growing instances of cyberthreats and money laundering across sectors are driving the need for FDP solutions. From the past few years, the fintech sector has been facing instances of cyberattacks, increasing the demand for FDP solutions. The fintech solution providers are integrating their digital payment platform with FDP solutions to provide more secure and reliable services.

The internal fraud type is anticipated to grow at over 25% CAGR between 2021 to 2027 due to the rising collusion among employees. Internal fraud is any fraudulent activity committed against an enterprise by its own directors, executives, or employees for financial gains. It includes three major categories – corruption, asset misappropriation, and financial statement frauds.

The credit and debit fraud segment is expected to hold 30% of the FDP market share in 2027. Credit and debit card frauds involve fraud, theft, or any illegal transaction performed by a payment card (debit/credit), using the card as a fraudulent source of money for the transaction. Banks are increasingly adopting anti-fraud measures, such as electronic chip-based cards (EMV cards), anti-skimming ATM machines, and Two Factor Authentication (2FA), for protecting transactions against fraud activities.

The healthcare sector is forecast to register 20% gains through 2027 owing to the rising number of fraudulent claims such as life insurance. The healthcare fraud involves fraudulent activities with the intention of defrauding medical insurers, government healthcare programs and equivalent private programs, and medical patients.

The companies operating in the market are focusing on updating their fraud detection and prevention platforms.