MarketsandMarkets forecasts the FDP market size to grow from USD 24.8 billion in 2021 to USD 65.8 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 21.5%. Increasing adoption of IoT and digital solutions, increasing revenue losses due to frauds, and growing adoption of analytics for fraud detection across industries are some of the factors that are driving the market growth.
According to ACFE (Association of Certified Fraud Examiners), organizations lose nearly 5 % of their overall annual revenues due to fraud on a global scale. The FBI- IC3 reported domestic and international losses of USD 26.2 billion between 2016 and 2019. In 2019, due to cybercrime, there was a loss of more than USD 3.5 billion to enterprises across the globe. These losses cause a huge financial blow for organizations, and the reputation of those organizations also gets compromised as a result. Hence, it becomes essential for the organizations to deploy FDP solutions and services.
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What is Fraud detection and prevention?
Fraud Detection and Prevention is the process of finding a fraudulent activity in a system and utilizing the resources to mitigate those risks; this is termed as fraud detection. The process of utilizing automated tools and methods such as analytics, authentication and compliance, to predict the vulnerabilities and make appropriate measures in advance, is termed as fraud prevention.
The FDP market is highly competitive due to numerous players operating in different parts of the entire ecosystem. The market is led by some of the globally established players such as Fiserv (US), PayPal (US), FIS (US), LexisNexis (US), TransUnion (US), Experian (Ireland), Nice Actimize (US), and Visa (US). These players have adopted various growth strategies such as partnerships, agreements, collaboration, acquisitions and product developments to increase their market presence.
Fiserv, a global fintech and payment company, sells its FDP solutions and products globally, both directly and indirectly, through selected partners. Fiserv’s partners include a variety of sales channels, such as government, telecommunications, utilities, merchants, financial institutions, and Fintech organizations. Some of the major partners of Fiserv are TCS, Republic Bank, NOVO BANCO, Transact Bank, Federal Bank, and Bank of Baroda. The company’s inorganic growth strategies are also continuously targeted towards strengthening its global reach in terms of clients as well as customers. For example, in July 2020, Fiserv partnered with Transact Bank to focus on the financial needs of domestic and cross-border businesses. In January 2021, Fiserv acquired Ondot to expand the digital capabilities further, enhancing its suite of integrated solutions to enable clients.
Apart from large and SME players, start-ups such as FRISS (Netherlands), MaxMind (US), BioCatch (Israel), Cleafy (Italy), DataVisor (US), Gurucul (US), and Pondera solutions (US) are also evolving in FDP market space. FRISS is a SaaS based FDP solution and service provider and targets P&C insurance companies across the world. It was established in 2006 in Netherlands and at present already expanded to Europe, US and Latin America. The company was acknowledged by Fintech Global in their 2021 InsurTech100 and has achieved number of milestones in 2021 such as adding 43 new insurance customers, acquired Terrence Labs, and raised a USD 65 million Series B funding with Accel-KKR among others.
Fraud Detection and Prevention Market by Solution (Fraud Analytics, Authentication, and GRC), Service (Managed and Professional), Vertical (BFSI, Retail and eCommerce, and Travel and Transportation), Deployment Mode and Region - Global Forecast to 2026
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