Fraud detection and prevention (FDP) presents an especially lucrative opportunity for the channel as the global market is expected to reach $63.5 billion by 2023.
That’s according to a new report by MarketsandMarkets, which anticipates a compound annual growth rate of nearly 27 percent. The market is currently valued at $19.5 billion.
Increasing revenue losses faced by organizations due to the growing frequency and sophistication of cyber frauds and attacks, and rapid growth in electronic transactions are driving market growth.
The identity-theft application segment is expected to grow at the highest CAGR through 2023. Stolen identity is used by cybercriminals for making fraudulent purchases or transactions for their personal gains.
Among verticals, retail is expected to grow at the highest CAGR through 2023. This vertical has always been a target for fraudsters because of monetary transactions carried out via Visa, MasterCard and other payment-processing networks. Moreover, it is always on the top in terms of cost-cutting, revenue margins and the adoption of the latest technologies.
The banking vertical is estimated to hold the largest market size this year due to the increased adoption of FDP solutions. The banking, financial services and insurance (BFSI) vertical also is a major target for cybercriminals as it holds sensitive information of employees, customers, assets, offices, branches and operations. Moreover, due to its amount of transactions, technological advancements and digitalization of the sector, the possibility of fraud is increasing significantly.
North America is estimated to hold the largest FDP market size in 2018 as the region is a mature and well-established market with a healthy risk appetite and inclination toward technological innovations, according to the report. The APAC market is expected to grow at the highest CAGR through 2023. Major growth factors for APAC include increasing technology adoption, significant opportunities across industry verticals and strict directives for data privacy in APAC countries.