Fraud Detection and Prevention (FDP) in BFSI Market worth $15.06 billion by 2031
The report "Fraud Detection and Prevention (FDP) in BFSI Market by Fraud Type (Investment, Payment), Use Case (Banking (Account Takeover Detection & Prevention), Financial Services (Payment & Remittance, Crypto & Digital Asset), Insurance) - Global Forecast to 2031", The global fraud detection and prevention in BFSI market is projected to grow from USD 7.78 billion in 2026 to USD 15.06 billion by 2031, at a CAGR of 14.1% during the forecast period. The expansion of digital banking and real-time payment ecosystems is increasing the need for advanced fraud prevention capabilities, while the growing adoption of digital identity and behavioral authentication is enhancing transaction security. Financial institutions are increasingly integrating behavioral biometrics and identity intelligence into fraud detection platforms to continuously verify user legitimacy throughout digital interactions. Mastercard's AI-powered Scam Protect portfolio reflects this shift toward identity-centric fraud prevention.
Browse 350 market data Tables and 50 Figures spread through 300 Pages and in-depth TOC on "Fraud Detection and Prevention (FDP) in BFSI Market by Fraud Type (Investment, Payment), Use Case (Banking (Account Takeover Detection & Prevention), Financial Services (Payment & Remittance, Crypto & Digital Asset), Insurance) - Global Forecast to 2031"
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Based on solution, the fraud analytics segment accounts for the largest market size.
Fraud analytics is expected to hold the largest market share in the FDP in BFSI market during the forecast period, owing to the increasing need for real-time analysis of high-volume financial transactions across banking, payments, lending, and insurance. Financial institutions are leveraging AI, machine learning, and behavioral analytics to identify anomalous transaction patterns, reduce false positives, and detect sophisticated fraud schemes before financial losses occur. The growing adoption of instant payments and digital banking further reinforces demand for advanced fraud analytics platforms that provide continuous risk assessment and actionable insights. For example, SAS Fraud Management enables financial institutions to combine predictive analytics and machine learning to detect and prevent fraud across multiple payment channels in real time.
By fraud type, the identity fraud segment will grow at the highest CAGR during the forecast period.
Identity fraud is expected to register the fastest growth in the FDP in BFSI market during the forecast period, driven by the rapid rise in digital banking, remote onboarding, and AI-enabled impersonation attacks. Fraudsters are increasingly exploiting stolen credentials, synthetic identities, deepfakes, and account takeover techniques to bypass traditional authentication methods, prompting financial institutions to strengthen identity verification and continuous authentication capabilities. As a result, banks and insurers are investing in advanced identity-centric FDP solutions that combine biometrics, behavioral analytics, and AI-based risk assessment to detect fraudulent identities in real time. According to TransUnion, suspected digital account takeover fraud increased by 37% between 2024 and 2025, highlighting the growing need for stronger identity fraud prevention capabilities.
By use case, the insurance segment is expected to grow at the highest CAGR during the forecast period.
Insurance is expected to register the fastest growth in the FDP in BFSI market during the forecast period, driven by the increasing frequency of fraudulent claims, identity theft, and AI-enabled document and image manipulation. The growing adoption of digital policy issuance and claims processing has expanded opportunities for fraud, prompting insurers to invest in AI-powered fraud detection, behavioral analytics, and automated claims verification. These solutions help identify suspicious claims, reduce investigation time, and improve claims accuracy while minimizing operational costs. According to the National Insurance Crime Bureau (NICB), insurance fraud linked to identity theft is projected to increase by 49% in 2025, reinforcing the need for advanced FDP capabilities across the insurance sector.
Key Players
FIS Global (US), Fiserv (US), TransUnion (US), LexisNexis (US), ACI Worldwide (US), Experian (Ireland), SAS Institute (US), NICE Actimize (US), BioCatch (US), Feedzai (US), RSA Security (US), Equifax (US), SIFT (US), DataVisor (US), IBM (US), GBG (UK), Featurespace (UK), XTN Cognitive (Italy), PIPL (US), JuicyScore (UAE), Amani Technologies (UAE), Cleafy (Italy), Alpha Group (Italy), and FUGU-IT (Israel) are the key players in the FDP in BFSI market.
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