The global fraud detection & prevention market generated a revenue of nearly $18.8 billion in 2018 and is predicted to generate a revenue of $145.7 billion by 2026 supported by a CAGR of 29.6%.
The market has witnessed a significant growth earlier, and due to the unexpected COVID-19 outbreak, the market will observe additional growth in 2020. Prohibited activity that involves the process of obtaining valuable things through falsification is known as fraud. Systems that are utilized to detect and prevent these prohibited activities are known as fraud detection & prevention software. Our analysts have estimated the condition of the global fraud detection and prevention market during the COVID-19 outbreak and have come to the following conclusions.
|Realtime BPS||*Estimated market Size, 2020,
|**Real Time market Size, 2020,
|26.5%||29.6%||305||USD 30.0 Billion||USD 31.5 Billion|
* The numbers are estimated prior to the COVID-19 Pandemic in 2020
** The data will vary depending on upcoming developments announced by the operating players
KEY ASPECTS OF THE INDUSTRY
BOOMERS AND DECLINERS
Globalization & digitization has increased the use of Internet of Things (IoT), cloud computational methods, mobile banking, and e-transactions. Thus, many illegal activities such as cyber-attacks, finical frauds or crimes, and data breaching activities are increasing along with the globalization & digitization. Fraud detection & prevention software is widely utilized to detect these illegal activities and reduce the risk of fraud. For instance, according to the publication by Joseph Wells, there are five types of frauds that have registered a total of $827,000 million in the year 2019.
However, fraud detection & prevention software requires time to detect these fraud activities. For instance, fraud detection & prevention software is restricted to perform specific actions in a short period. In addition, fraud prevention activity gives no context for the detection of prohibited activities. For example, Inapp fraud detection & prevention software helps to detect fraud but it fails to prevent fraud owing to the lack of time and contextual data. These factors are foreseen to hamper the market growth in the forecast period.
The COVID-19 pandemic has impacted positively on the global fraud detection & prevention market. Advancements in fraud detection & prevention software such as flexible browser-based interface and pre-defined scenarios for historical and real-time alerts has impacted positively on the market. For instance, Software AG, a leader in fraud detection & prevention software offers detection and prevention apps that are built using the Complex Event Processing (CEP) engine. This offers increased speed of fraud detection that can save $10 million of revenue in a large-scale industry.
Moreover, fraud detection & prevention minimizes revenue loss by detecting and prohibiting fraud in actual time across various banking channels. Fraud detection & prevention is gaining importance among large scale business sector owing to the growing risk of frauds, among which data breaching is the most common. For illustration, prominent players in fraud detection & prevention are offering advantages such as processing large data in less time and storage of appropriate data for low-latency response. Additionally, fraud detection & prevention offers prevention from energy theft and market manipulation that enhances the growth of the company.
MANAGING SUCCESS AMIDST
THE PANDEMIC STRESS
The global fraud detection & prevention market will witness an additional growth in 2020 and is anticipated to follow the trend until the end of the forecast period, despite the Covid-19 situation. Fraud detection & prevention is gaining importance owing to the capability of identifying and acting to a new unusual behavior of online traffic that can lead to breaching of data. Adding to this, the fraud detection & prevention market has witnessed growth due to the presence of high-performance testing and flexibility in the data visualization process that can prohibit the fraud in real-time scenario. For instance, Software AG provides fraud detection & prevention tools that are capable of processing 0.3% to 0.5% windows that are missed in-process transactions.
Besides, the use of various common adapters to ensure protected connectivity and flexibility in a framework helps to update fraud scenarios in real-time. For example, fraud through debit and credit card is increasing enormously The use of fraud detection & prevention with complex event processing engines enables the users to detect the restricted online traffic. Nonetheless, fraud detection & prevention operates and prohibits various types of frauds through a combination of real-time transaction data and historical analysis of customer behavior. These factors will drive the fraud detection & prevention market in the forecast period.
How can we help you?
Our group of skilled analysts provide a solution to help the companies to survive and sustain in this global pandemic. We support companies to make informed decisions based on our findings resulting from the comprehensive study by our qualified team of experts. Our study helps to acquire the following:
- Long-term and Short-term impact of Covid-19 on the market
- Cascading impact of Covid-19 on the Fraud Detection and Prevention Market , due to the impact on its extended ecosystem
- Understanding the market behaviour pre- and post-Covid-19 pandemic
- Strategic suggestions to overcome the negative impact on your business or turn the positive impact into an opportunity