The fraud detection and prevention market or FDP is expected to grow from USD 16.62 billion in 2017 to USD 41.59 billion by 2022, at a compound annual growth rate of 20.1%, according to newly published findings from Marketsandmarkets. The demand for solutions, which can help enterprises detect the fraudulent activities and prevent them from occurring, is increasing with a high growth rate. The researchers suggest that the number of fraudulent actions is not particularly on the increase, but the degree of lost revenue is, and it is this factor that is driving the demand for FDP solutions. All FDP solutions should work simultaneously in order to provide a fraud-proof enterprise environment.
FDP solutions provide a strong defense against fraudulent activities and safeguard organisations from internal and external threats. As the frequency of sophisticated fraud attacks on enterprises is growing, the market is expected to gain traction in the next 5 years. The major forces driving the FDP market are the increasing fraudulent activities in various industries, the increasing reputation loss and revenue loss for organisations, and the increasing online transactions over web and mobile applications.
The authentication solution is expected to have the largest market share in the FDP market in 2017. Single-Factor Authentication (SFA) and Multi-factor Authentication (MFA) are the subsegments of the authentication solution. The authentication solution is expected to have the largest market share and dominate the FDP market from 2017 to 2022. This solution helps enterprises maintain the authenticity of a transaction or information by blocking the unauthorised access to information or identifying false inputs from the user. With the rise in demand for high authenticity, authentication solutions are being readily deployed in enterprises.
The government and public utilities vertical is expected to contribute to the largest market share in the FDP market. Frauds in the public or government sector include misappropriation of assets, bribery and corruption, accounting fraud, data theft, and money laundering. In the era of cyber warfare for public sector organisations, it is very important to maintain the data integrity. The Banking, Financial Services, and Insurance (BFSI) vertical is expected to dominate the FDP market, with the largest market size in 2017.