U.S. consumers reported about ***million U.S. dollars worth of credit card fraud in the first quarter of 2025, the second increase in a row. This is according to a reporting of the organization that collects such consumer reports submitted to local law enforcement. While credit cards are relatively popular in the United States, the highest value type of fraud is reported with bank transfers or cryptocurrencies. The latter is relatively surprising, as the global size of crypto fraud is reported to be much lower than hacks involving cryptocurrency.

According to estimates, e-commerce losses to online payment fraud surpassed **** billion U.S. dollars globally in 2024. The figure was expected to grow further to over *** billion U.S. dollars by 2029. Rise in e-commerce fraud E-commerce fraud presents a complex challenge, with different regions experiencing varying levels of impact. Latin America reported the highest share of loss at *** percent of e-commerce revenue due to payment fraud, while the Asia-Pacific region fared slightly better at *** percent. In 2024, refund and policy abuse emerged as the most prevalent type of fraud, affecting nearly half of online merchants worldwide. This was closely followed by real-time payment fraud and phishing attacks, highlighting the diverse array of threats businesses must contend with. Financial impact on merchants The financial toll of e-commerce fraud on merchants is substantial. The magnitude of these losses is emphasized by a 2024 survey, which found that approximately ** percent of e-merchants reported fraud-related costs of at least ** million U.S. dollars annually. More alarmingly, over ** percent of companies estimated their annual losses at more than ** million U.S. dollars, underscoring the urgent need for robust fraud prevention strategies in the e-commerce sector. Additionally, small and medium-sized businesses reported losing *** percent of their annual e-commerce revenue to payment fraud, illustrating that companies of all sizes are vulnerable to these threats.

Payment card fraud - including both credit cards and debit cards - is forecast to grow by over 10 billion U.S. dollars between 2022 and 2028. Especially outside the United States, the amount of fraudulent payments almost doubled from 2014 to 2021. In total, fraudulent card payments reached 32 billion U.S. dollars in 2021. Card fraud losses across the world increased by more than 10 percent between 2020 and 2021, the largest increase since 2018.

Online Payment Fraud Detection Market Outlook

The global online payment fraud detection market size was valued at USD 3.7 billion in 2023 and is projected to reach approximately USD 14.1 billion by 2032, growing at a robust CAGR of 16.2% during the forecast period. The rapid growth of e-commerce, increased digital transactions, and the rising sophistication of cyber-attacks are key factors driving the market's expansion. The market has seen significant growth owing to the necessity for secure online payment solutions to protect against fraud.

A critical growth factor for the online payment fraud detection market is the burgeoning volume of online transactions. With the proliferation of e-commerce platforms and online financial services, the sheer number of digital payments has skyrocketed. This surge in online transactions has inevitably led to an increase in fraud attempts, necessitating advanced fraud detection systems. Financial institutions and vendors are increasingly investing in robust fraud detection solutions to safeguard their operations and customer data, thereby propelling the market forward.

Another significant driver is the technological advancement in fraud detection methods. The adoption of artificial intelligence (AI), machine learning (ML), and big data analytics has revolutionized the way online payment fraud is detected and prevented. These technologies offer real-time monitoring and predictive analytics, enabling organizations to identify and mitigate fraudulent activities proactively. The continuous evolution of these technologies promises further advancements, making fraud detection systems more efficient and reliable.

Regulatory requirements and compliance standards are also contributing to market growth. Governments and regulatory bodies worldwide are implementing stringent guidelines to ensure the security of digital transactions. Compliance with these regulations necessitates the adoption of advanced fraud detection systems. For instance, the European Union's Revised Payment Services Directive (PSD2) mandates strong customer authentication for online payments, thereby fostering the demand for sophisticated fraud detection solutions.

Account Takeover Fraud Detection Software plays a pivotal role in the evolving landscape of online payment security. As cybercriminals become more adept at exploiting vulnerabilities, businesses are increasingly turning to specialized software to detect and prevent unauthorized access to user accounts. This type of fraud detection software employs advanced algorithms and machine learning techniques to monitor user behavior and identify anomalies that may indicate account takeover attempts. By analyzing login patterns, device information, and transaction history, these solutions can effectively flag suspicious activities and prevent unauthorized access. The integration of such software into existing security frameworks is crucial for businesses aiming to protect their customers' accounts and maintain trust in their digital platforms.

The regional outlook for the online payment fraud detection market suggests a varied growth pattern. North America currently holds the largest market share due to the high adoption rate of digital payments and stringent regulatory landscape. Europe follows closely, driven by compliance requirements and the proliferation of online transactions. The Asia Pacific region is anticipated to witness the fastest growth, fueled by the rapid expansion of e-commerce and increasing digitalization in emerging economies. In contrast, regions like Latin America and the Middle East & Africa are gradually catching up, with growing awareness and investments in fraud detection technologies.

Component Analysis

The online payment fraud detection market is segmented by components into software and services. The software segment dominates the market, accounting for the lion's share of revenue. This segment includes various solutions such as fraud analytics, biometric authentication, and transaction screening. The continuous innovation in software tools to identify and prevent fraudulent activities is a significant driver for this segment. Companies are investing heavily in developing AI and ML-based software tools that offer real-time detection and response to fraud attempts.

The software segment's growth is further propelled by the increasing demand for integrated fraud detection solutio

Debit cards, credit cards, and PayPal were the payment methods e-commerce merchants worldwide saw the most fraud. In contrast, less than a quarter of online merchants cited digital wallet services, Apple Pay and Google Pay, as the most fraudulent.

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Fraud Detection And Prevention Market Size 2024-2028

The fraud detection and prevention market size is forecast to increase by USD 86.68 billion at a CAGR of 27.17% between 2023 and 2028.

In the current business landscape, the market is experiencing significant growth due to several key factors. The increasing adoption of cloud infrastructure services, such as cloud computing and big data, is driving market expansion. These technologies enable organizations to store and process large volumes of data, which is essential for advanced fraud detection techniques like anomaly detection. Moreover, the healthcare services sector is increasingly relying on fraud detection solutions to safeguard sensitive patient data. In addition, the rise of business intelligence (BI) and machine-to-machine (M2M) services is leading to an increased need for robust fraud prevention measures. Phone-based authentication solutions are also gaining popularity as an effective method for securing user identities and preventing fraud. The technological advancement in fraud detection and prevention solutions and services, coupled with the complexity of IT infrastructure, is further fueling market growth.

What will be the Size of the Fraud Detection And Prevention Market During the Forecast Period?

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The market encompasses a range of solutions designed to safeguard businesses and organizations from various types of financial and data breaches. Key end-use industries, including healthcare, manufacturing, governments, and IT , business intelligence and telecom, among others, increasingly rely on advanced technologies to mitigate risks. Market dynamics are driven by the growing adoption of cloud-based solutions, big data analytics, and blockchain technology. These innovations enable real-time fraud detection, enhancing the ability to prevent incidents such as payment fraud, identity theft, phishing scams, and money laundering. 
SMEs and large enterprises across sectors like travel and transportation, energy and utilities, media and entertainment, professional services, and insurance claims face similar challenges, making the market expansive and diverse. Authentication solutions, real-time fraud detection, and managed services are integral components of the market, catering to the evolving needs of businesses in an increasingly digital world.

How is this Fraud Detection And Prevention Industry segmented and which is the largest segment?

The fraud detection and prevention industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Component

  Solutions
  Services


End-user

  Large enterprise
  SMEs


Geography

  North America

    US
    Canada


  Europe

    Germany
    Spain
    UK


  APAC

    China
    Japan
    India


  South America

    South Africa


  Middle East and Africa

By Component Insights

The solutions segment is estimated to witness significant growth during the forecast period.

The market is experiencing significant growth due to escalating cyber threats and the increasing need for robust security measures. Key drivers include the rising number of fraudulent activities such as identity theft, money laundering, and phishing scams, as well as economic uncertainty and the pandemic. In the solutions segment, authentication solutions have emerged as a major revenue generator. However, the high cost of biometric technology may hinder growth in this area. SMEs, healthcare, manufacturing, end-use enterprises, governments, IT and telecom, travel and transportation, energy and utilities, media and entertainment, and financial institutions are among the key industries investing in fraud detection and prevention. Digital technologies, including cloud-based solutions, Big Data, artificial intelligence, and machine learning, are increasingly being adopted for real-time fraud detection. Fraud complexity and online data transactions pose significant challenges, necessitating proactive measures and trained cybersecurity professionals.

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The Solutions segment was valued at USD 11.84 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 40% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The North American the market is projected to expand substantially due to the increasing prevalence of cyber threats in sectors like healthcare

The global credit card fraud detection platform market is experiencing robust growth, driven by the escalating volume of digital transactions and the increasing sophistication of fraud techniques. The market, valued at approximately $15 billion in 2025, is projected to exhibit a Compound Annual Growth Rate (CAGR) of 18% from 2025 to 2033. This substantial growth is fueled by several key factors. The rising adoption of e-commerce and mobile payments creates a larger attack surface for fraudsters, necessitating advanced detection solutions. Furthermore, the increasing prevalence of sophisticated fraud schemes, such as synthetic identity theft and account takeover, demands more intelligent and adaptive fraud detection systems. The market is segmented by screening type (manual and automatic) and application (personal and enterprise), with automatic screening and enterprise applications driving the majority of growth due to their scalability and efficiency. The competitive landscape is dynamic, with established players like FICO, Mastercard, and Visa competing alongside innovative startups such as Forter and Feedzai. These companies continuously develop AI-powered solutions leveraging machine learning and big data analytics to identify and prevent fraudulent transactions effectively. Regional growth varies, with North America and Europe currently holding significant market share, but Asia-Pacific is expected to experience rapid expansion in the coming years due to rising digital adoption and economic growth in countries like India and China. The continued growth of the credit card fraud detection platform market hinges on several factors. The increasing demand for real-time fraud detection capabilities is driving the adoption of cloud-based solutions and the integration of advanced analytics. Regulatory compliance requirements, particularly around data privacy and security, also contribute to market growth. However, challenges remain. The cost of implementing and maintaining these sophisticated systems can be prohibitive for smaller businesses. Moreover, the constant evolution of fraud techniques necessitates ongoing investment in research and development to stay ahead of emerging threats. The market’s future trajectory will depend on the continued innovation in fraud detection technologies, the ability to adapt to evolving fraud tactics, and the successful integration of these solutions across various industries and geographies.

The global market for Medical Payment Fraud Detection is projected to reach $1,390 million by 2033, growing at a CAGR of 12.5% from 2025 to 2033. Increasing healthcare costs, rising incidences of fraud in medical claims, and growing adoption of advanced technologies such as artificial intelligence (AI) and machine learning (ML) are driving the market growth. The need for efficient and accurate fraud detection systems to prevent financial losses and protect patient safety is also contributing to the market expansion. The market is segmented by application into private insurance payers, public/government agencies, and third-party service providers. The private insurance payers segment holds the largest market share due to the high incidence of fraud in private insurance claims. The cloud-based segment is expected to grow at a faster rate than the on-premise segment, as cloud-based solutions offer flexibility, scalability, and cost-effectiveness. North America is the largest regional market, followed by Europe and Asia Pacific. The increasing adoption of advanced fraud detection technologies and the rising healthcare expenditure in these regions are driving the market growth.

Card fraud losses across the world increased by more than 10 percent between 2020 and 2021, the largest increase since 2018. It was estimated that merchants and card acquirers lost well over 30 billion U.S. dollars, with - so the source adds - roughly 12 billion U.S. dollar coming from the United States alone. Note that the figures provided here included both credit card fraud and debit card fraud. The source does not separate between the two, and also did not provide figures on the United States - a country known for its reliance on credit cards.

The dataset contains transactions made by credit cards in September 2013 by European cardholders. This dataset presents transactions that occurred in two days, where we have 492 frauds out of 284,807 transactions. The dataset is highly unbalanced, the positive class (frauds) account for 0.172% of all transactions.

It contains only numerical input variables which are the result of a PCA transformation. Unfortunately, due to confidentiality issues, we cannot provide the original features and more background information about the data. Features V1, V2, … V28 are the principal components obtained with PCA, the only features which have not been transformed with PCA are 'Time' and 'Amount'. Feature 'Time' contains the seconds elapsed between each transaction and the first transaction in the dataset. The feature 'Amount' is the transaction Amount, this feature can be used for example-dependent cost-sensitive learning. Feature 'Class' is the response variable and it takes value 1 in case of fraud and 0 otherwise.

Given the class imbalance ratio, we recommend measuring the accuracy using the Area Under the Precision-Recall Curve (AUPRC). Confusion matrix accuracy is not meaningful for unbalanced classification.

The global medical payment fraud detection market is experiencing robust growth, projected to reach $1296.5 million in 2025 and exhibiting a Compound Annual Growth Rate (CAGR) of 12.0% from 2025 to 2033. This significant expansion is fueled by several key factors. The increasing prevalence of healthcare fraud, driven by sophisticated schemes and rising healthcare costs, necessitates advanced detection technologies. Government initiatives to combat fraud and improve healthcare efficiency, coupled with stricter regulations and penalties for fraudulent activities, are further bolstering market growth. The adoption of cloud-based solutions offers scalability and cost-effectiveness, while the integration of artificial intelligence (AI) and machine learning (ML) algorithms enhances the accuracy and speed of fraud detection. Furthermore, the rising adoption of big data analytics allows for the identification of complex patterns and anomalies indicative of fraudulent claims. The market is segmented by application (private insurance payers, public/government agencies, third-party service providers) and type (on-premise, cloud-based), reflecting diverse user needs and technological advancements. Geographically, North America currently holds a significant market share, driven by substantial investments in healthcare IT infrastructure and a high prevalence of fraud cases. However, emerging economies in Asia-Pacific and other regions are expected to witness rapid growth in the coming years due to increasing healthcare expenditure and technological advancements. The competitive landscape is characterized by a mix of established technology providers and healthcare specialists. Companies like LexisNexis Risk Solutions, IBM, OptumInsight, and others offer sophisticated solutions incorporating AI, ML, and data analytics. The continued development of advanced algorithms and the increasing integration of these technologies within healthcare systems are expected to further drive market expansion throughout the forecast period. The market's growth trajectory reflects the critical need for efficient and accurate fraud detection mechanisms to safeguard healthcare resources and maintain the integrity of the healthcare system. The evolution toward proactive fraud prevention, utilizing predictive analytics and real-time monitoring, represents a key trend shaping the future of this dynamic market.

Hungary Successful Fraud Attempts in Electronic Payments (SFA): Volume data was reported at 27.000 Unit in Dec 2019. This records an increase from the previous number of 17.000 Unit for Sep 2019. Hungary Successful Fraud Attempts in Electronic Payments (SFA): Volume data is updated quarterly, averaging 15.500 Unit from Mar 2010 (Median) to Dec 2019, with 40 observations. The data reached an all-time high of 72.000 Unit in Dec 2011 and a record low of 3.000 Unit in Sep 2016. Hungary Successful Fraud Attempts in Electronic Payments (SFA): Volume data remains active status in CEIC and is reported by National Bank of Hungary. The data is categorized under Global Database’s Hungary – Table HU.KA013: Card and Electronic Payment Frauds.

Financial Anti-Fraud Software Market Outlook

The global financial anti-fraud software market size was valued at USD 6.5 billion in 2023 and is projected to reach USD 15.8 billion by 2032, growing at a CAGR of 10.4% during the forecast period. The market is expected to witness significant growth driven by the increasing sophistication of cyber-attacks and the rising need for robust fraud detection mechanisms. Factors such as the rising digitization of financial transactions and stringent regulatory requirements are also contributing to the market's expansion.

One of the primary growth factors for the financial anti-fraud software market is the increasing sophistication of cyber-attacks. As cybercriminals employ more advanced techniques, organizations are compelled to adopt equally advanced systems to detect and prevent fraudulent activities. The use of artificial intelligence (AI) and machine learning (ML) in these software solutions has enabled real-time analysis and detection of anomalies, making it more difficult for fraudsters to succeed. Moreover, as financial institutions increasingly rely on digital channels, the exposure to potential security breaches has surged, necessitating advanced anti-fraud measures.

Another significant growth factor is the regulatory environment. Governments and regulatory bodies worldwide are implementing stringent policies to ensure the security of financial transactions. Compliance with these regulations requires financial institutions to adopt robust anti-fraud solutions. For instance, regulations like the General Data Protection Regulation (GDPR) in Europe and the Payment Card Industry Data Security Standard (PCI DSS) mandate rigorous data protection measures, which, in turn, drives the demand for advanced fraud detection software. The need for compliance not only mitigates risks but also builds customer trust.

Additionally, the rising digitization of financial services is a substantial growth driver. The shift from traditional banking methods to digital platforms has led to an increase in online transactions. While this transition offers convenience and efficiency, it also opens up new avenues for fraud. Financial institutions are investing heavily in anti-fraud software to safeguard their digital platforms. This includes mobile banking, online transactions, and even cryptocurrency exchanges. As digital financial activities continue to grow, the market for anti-fraud solutions is expected to expand correspondingly.

Fraud Risk Management Services play a crucial role in the financial sector by providing a comprehensive approach to identifying, assessing, and mitigating fraud risks. These services encompass a range of activities, including fraud risk assessments, the development of anti-fraud strategies, and the implementation of robust controls to prevent fraudulent activities. By leveraging data analytics and advanced technologies, fraud risk management services enable financial institutions to proactively detect and respond to potential threats. This proactive approach not only helps in minimizing financial losses but also enhances the overall security posture of organizations. As the financial landscape continues to evolve, the demand for specialized fraud risk management services is expected to rise, driven by the increasing complexity of fraud schemes and the need for compliance with regulatory requirements.

On the regional front, North America currently holds the largest market share, driven by the high adoption rate of advanced technologies and stringent regulatory requirements. However, the Asia Pacific region is anticipated to witness the highest growth rate during the forecast period. Factors such as the rapid digitization of financial services, increasing internet penetration, and growing awareness about financial fraud are contributing to this growth. Countries like China and India are expected to be major contributors due to their large population base and increasing adoption of digital financial services.

Component Analysis

The financial anti-fraud software market can be segmented by component into software and services. The software segment holds the largest market share due to the increasing adoption of advanced fraud detection technologies by financial institutions. These software solutions incorporate advanced analytics, machine learning algorithms, and artificial intelligence to provide real-time fraud detection and prevention. Companies are continually investing in R&D to e

Fraud Detection and Prevention (FDP) Software Market Outlook

In 2023, the global market size for Fraud Detection and Prevention (FDP) software is projected to be valued at approximately USD 25 billion. This burgeoning market is anticipated to escalate with a compound annual growth rate (CAGR) of 11% from 2024 to 2032, reaching an estimated USD 58 billion by the end of the forecast period. The proliferation of digital transactions, coupled with the increasing sophistication of cyber threats, is propelling the adoption of FDP solutions across various industry sectors. The market's growth is further fueled by an escalating demand for advanced analytics and machine learning technologies, which are integral to modern fraud detection mechanisms.

The burgeoning volume of online transactions, driven by the rapid uptake of e-commerce and digital payment solutions, is one of the primary growth factors of the FDP software market. As businesses transition to digital platforms, they face heightened exposure to fraud risks, necessitating robust fraud detection solutions. The expansion of the e-commerce sector has particularly intensified the need for comprehensive digital security strategies, as fraudulent activities such as identity theft, payment fraud, and account takeovers become increasingly prevalent. FDP software, leveraging advanced algorithms and real-time analytics, plays a pivotal role in mitigating such risks, thereby safeguarding businesses and consumers alike.

Moreover, the increasing regulatory pressures worldwide are another significant driver for the FDP software market. Governments and regulatory bodies are intensifying their focus on data protection and financial integrity, mandating businesses to implement stringent fraud prevention measures. Compliance with regulations such as the GDPR in Europe and CCPA in California demands sophisticated fraud detection systems to ensure data privacy and security. Consequently, businesses are increasingly investing in FDP solutions to not only protect themselves from fraud but also to remain compliant with evolving legal requirements.

Furthermore, technological advancements in artificial intelligence and machine learning are revolutionizing the fraud detection landscape, contributing to market growth. These technologies enable the development of intelligent systems capable of identifying suspicious activities with greater accuracy and speed. Machine learning models can learn from historical data to predict potential fraudulent activities, thus allowing businesses to proactively address security threats. The integration of AI in FDP solutions enhances their ability to adapt to new and ever-evolving fraud tactics, ensuring continuous protection for enterprises across various sectors.

Regionally, North America holds a significant share of the FDP software market, primarily due to the high adoption of advanced technologies and the presence of key market players. The region's strong financial infrastructure and the prevalence of online transactions further boost the demand for FDP solutions. The Asia Pacific region is poised for the highest growth rate during the forecast period, driven by digital transformation initiatives across emerging economies and increasing internet penetration. In Europe, stringent data protection regulations and a high concentration of e-commerce activities are driving the adoption of FDP software. Latin America and the Middle East & Africa are also witnessing growing interest in fraud prevention solutions, although these regions are still developing in terms of technological infrastructure.

Component Analysis

In the Fraud Detection and Prevention software market, the component segment is bifurcated into software and services. The software component is further sub-divided into various types of applications and platforms that cater to different aspects of fraud detection, such as identity verification, transaction monitoring, and behavioral analysis. The software division constitutes the lion's share of the market, as businesses prioritize robust technological solutions to combat sophisticated fraud techniques. These software solutions leverage machine learning, data analytics, and artificial intelligence to deliver real-time insights and predictive analytics, which are essential for identifying and mitigating fraudulent activities swiftly.

On the other hand, the services component encompasses support and maintenance services, consulting, and training. These services are critical for the effective deployment and functioning of FDP software solutions. Service providers offer expertise

The dataset contains year-wise compiled data on the total number and value of banking frauds committed in India, categorized by different banking groups such as financial institutions, foreign banks, payment banks, private sector banks, public sector banks, small finance banks, local area banks, etc. .

Notes: 1. The frauds reported are of rupees 1 lakh and above. 2. The figures reported by banks and financial institutions are subject to change based on revisions filed by them. 3. Frauds reported in a year could have occurred several years prior to year of reporting. 4. Amounts involved are as reported and do not reflect the amount of loss incurred. Depending on recoveries, the loss incurred gets reduced. Further, the entire amount involved in loan accounts is not necessarily diverted

The global online payment fraud detection market is experiencing robust growth, driven by the escalating volume of digital transactions and the increasing sophistication of fraud techniques. The market, valued at approximately $15 billion in 2025, is projected to witness a Compound Annual Growth Rate (CAGR) of 15% from 2025 to 2033. This significant expansion is fueled by several key factors. Firstly, the rising adoption of e-commerce and mobile payments creates a larger attack surface for fraudsters, necessitating robust fraud detection solutions. Secondly, the emergence of advanced fraud techniques, such as synthetic identity fraud and deepfakes, necessitates continuous innovation in detection technologies. Thirdly, stringent regulatory compliance requirements, such as PSD2 and GDPR, are pushing businesses to invest heavily in fraud prevention measures. The BFSI (Banking, Financial Services, and Insurance) sector remains the largest adopter of these solutions, followed by retail and healthcare, each contributing significantly to the overall market value. Market segmentation reveals strong growth across various applications. Fraud analytics, which includes machine learning and AI-powered solutions, is a key driver, enabling proactive fraud detection. Authentication solutions, focusing on multi-factor authentication and biometric verification, are also experiencing high demand. Reporting and visualization tools are essential for gaining insights and understanding fraud patterns, facilitating more effective prevention strategies. Geographic analysis indicates significant market opportunities across North America, Europe, and Asia Pacific, with North America currently holding the largest market share due to higher adoption rates and stringent regulations. However, the Asia Pacific region is anticipated to exhibit the fastest growth, driven by rapid digitalization and increasing online transactions within developing economies. While the market faces challenges like the ever-evolving fraud landscape and the need for constant system upgrades, the overall outlook remains optimistic, with consistent growth projected throughout the forecast period.

The global fraud detection and prevention market is experiencing robust growth, driven by the escalating sophistication of fraudulent activities across various sectors and the increasing adoption of digital transactions. The market, estimated at $15 billion in 2025, is projected to witness a Compound Annual Growth Rate (CAGR) of 15% from 2025 to 2033, reaching approximately $45 billion by 2033. This expansion is fueled by several key factors. Firstly, the surge in online and mobile banking, e-commerce, and digital payment systems has created a fertile ground for fraudsters. Secondly, the increasing adoption of advanced technologies like artificial intelligence (AI), machine learning (ML), and big data analytics is empowering businesses to detect and prevent fraud more effectively. Regulatory compliance mandates, especially concerning data privacy and security, are also driving market growth as companies invest heavily in robust fraud prevention systems to mitigate risks and avoid penalties. The market is segmented by application (Enterprise, Financial Services, Government, Others) and type of threat (External Threat, Insider Threat), with Financial Services and External Threats currently dominating the landscape. However, certain restraints limit market growth. The high cost of implementing and maintaining sophisticated fraud detection systems can be a barrier for small and medium-sized enterprises (SMEs). Additionally, the constant evolution of fraud techniques necessitates continuous updates and upgrades to these systems, posing an ongoing challenge for businesses. Despite these challenges, the market is expected to remain resilient, propelled by the increasing interconnectedness of digital ecosystems and the resulting need for robust security measures. Key players like IBM, FICO, Oracle, and others are actively investing in R&D and strategic partnerships to strengthen their market position and cater to the evolving needs of businesses seeking proactive fraud mitigation strategies. The growth is anticipated to be particularly strong in regions like North America and Asia Pacific, due to high technological adoption and substantial investments in cybersecurity infrastructure.

In Portugal, during the first half of 2023, credit transfers were accountable for the highest value of fraud among payment instruments, registering an average value of 3,086 euros. The same occurred in the first half of 2024, with an even bigger fraud value. Direct debits followed, with an average fraud value of 648 euros in 2023 and 493 euros in 2024. In terms of bank cards, frauds from the perspective of the buyer reached the average value of 140 euros, while frauds from the perspective of the issuer stayed at 58 euros on average in 2024.

The global insurance fraud detection market is experiencing robust growth, projected to reach a substantial size driven by the escalating prevalence of insurance fraud across various sectors. The market, valued at $5.69 billion in 2025, is exhibiting a remarkable Compound Annual Growth Rate (CAGR) of 26.01%, indicating significant expansion through 2033. This surge is fueled by several key factors. Increased adoption of advanced analytics and artificial intelligence (AI) technologies enables insurers to detect sophisticated fraud schemes more effectively. Furthermore, stringent regulatory compliance requirements and growing consumer awareness of fraudulent activities are pushing insurers to invest heavily in robust fraud detection systems. The rising adoption of digital channels and interconnected data sources, while presenting opportunities for fraud, also provides richer datasets for advanced analytics, further accelerating market growth. Key segments driving this growth include solution providers focusing on fraud analytics, authentication, governance, risk, and compliance (GRC) software, as well as service providers offering consulting and implementation support. The BFSI (Banking, Financial Services, and Insurance) sector, along with healthcare and retail, represent the largest end-user industries, contributing significantly to the market's overall expansion. The market's segmentation reveals further insights into its dynamic nature. While solution providers currently hold a larger market share, the service segment is projected to experience substantial growth due to the increasing demand for customized solutions and integration support. Claims fraud remains the dominant application area, followed by identity theft and payment and billing fraud. Geographically, North America and Europe are currently leading the market, but the Asia-Pacific region is expected to witness significant growth fueled by rapid digitalization and increasing insurance penetration. The competitive landscape is characterized by a mix of established technology giants like IBM and FICO, and specialized fraud detection companies, fostering innovation and driving market competition. The ongoing evolution of fraud techniques necessitates continuous innovation in detection methods, ensuring the market's sustained expansion in the coming years. Recent developments include: May 2023 - Insurance data analytics provider Verisk partnered with CCC Intelligent Solutions, a cloud platform for the P&C insurance market, to address the risk of insurance fraud. The partnership will integrate Verisk's claims fraud detection analytics with CCC's claims platform., March 2023 - Shift Technology, a provider of AI-driven decision automation and optimization solutions for the global insurance industry, introduced the General Insurance Association of Singapore (GIA), which will be extending its usage of Shift Claims Fraud Detection on behalf of its member insurers. This strategic expansion builds on the successes of the GIA Fraud Management System (FMS) and will assist travel insurance fraud. This planned expansion allows them to maximize the potential of the travel module and comes at an opportune time to increase global travel. The collaboration with Shift gives them an important way to detect and manage fraudulent claims at scale. It also augments their sector's existing fraud detection and management efforts.. Key drivers for this market are: Need to Effectively Manage Huge Volumes of Identities, Improved Operational Efficiency and Enhanced Customer Experience. Potential restraints include: Need to Effectively Manage Huge Volumes of Identities, Improved Operational Efficiency and Enhanced Customer Experience. Notable trends are: Fraud Analytics Solution Segment is Expected to Hold Significant Market Share.

The PIS dataset currently contains statistics on payment transactions initiated by payment initiation services.