In 2022, the most commonly targeted age group by fraudsters was people ages 30 to 39, among whom 205,154 cases of fraud were reported to the Federal Trade Commission (FTC) in the United States. People aged 60 to 69 were the second most commonly targeted group, with 200,216 reports of fraud in the same year.

In the first half of 2023, the largest share of scams performed on social media, 44 percent, were online shopping fraud incidents. Investment-related scams ranked second, accounting for 20 percent of the total, followed by romance scams, with six percent of reported social media scams.

The COVID-19 outbreak saw a surge in e-commerce, but it also exposed a darker side. In 2020, over 38 percent of all scams worldwide were attributed to online purchases. However, as the pandemic waned, incidents of online shopping scams decreased, accounting for three in ten e-commerce transactions between January and June 2022. In 2023, the figure increased again to 41.9 percent. Rising costs and prevention efforts As online fraud continues to escalate, so do the financial losses and prevention efforts. E-commerce losses to online payment fraud were estimated at 41 billion U.S. dollars globally in 2022, with projections reaching 48 billion U.S. dollars by 2023. In response, the e-commerce fraud detection and prevention market is expected to grow significantly, potentially surpassing 100 billion U.S. dollars by 2027. [1273177, 1273278] AI in fraud management Merchants are adapting their strategies to combat the rising tide of online fraud. In 2024, 45 percent of e-merchants prioritized preventing fraud and chargebacks in their fraud management strategy, up from 40 percent in 2021. Additionally, approximately two-thirds of online merchants reported using or planning to use generative AI in e-commerce fraud management within the next 12 months to safeguard online transactions.

The online dating romance scam is a relatively new and under-reported international crime with serious financial and emotional consequences. Little is known about psychological characteristics that may put people at risk of victimization. This study was interested in the typology of victims of this crime. This website includes information on the scams and scammers, and a discussion forum used by members to exchange information and offer support. The majority of site users are victims, but others who have an interest but have not themselves been defrauded also visit it. With the moderators’ permission, we were able to post a recruitment message on the forum. In the period from 17th May to 8th September 2011, 603 individuals accessed the survey. Of these, 405 completed it fully and indicated that their data could be used for analysis in their answer to the second informed consent item at the end of the questionnaire.

Variables include the following: Country (country of residence); DOB (date of birth); Sex; sexuality, status (relationship status), length (longest amount of time spent in a relationship), education (level), job, job status, income, how_ recruited, interview (if want to be followed up), sample (where recruited), ISE (total internet self efficacy score), UCLA (loneliness scale score), BSSS (sensation seeking score), love finds (love finds a way score), One and only (one and only score), idealisation (idealisation score), tot_romanticism, extraversion, openness, neuroticism, conscientiousness, agreeableness, tricked by, age, type of victim, lost cash or not.

This project investigated the types of people conned by the online romance scam and how such deception psychologically affects a person, as well as the types of strategies that scammers use to con their victims. Specifically, the objectives of the research are to: (1) Devise a typology of the personality traits as well as other characteristics for the types of individuals who are more likely to be conned by the online romance scam. (2) Examine the persuasive techniques employed to con individuals. (3) Examine the psychological consequences of being taken in by such a scam. (4) Inform interested parties of the results of this project to help prevent these scams from happening in the first place.

In 2023, job scams were the most common type of scam in Singapore, with around 9,914 cases reported. E-commerce scams also represented a prevalent form of fraud in the country, with over 9,700 cases reported.

Phishing threat in Singapore In Singapore, around 42 thousand different phishing URLs with a .SG domain were detected in 2022. The highest number of phishing URLs was recorded the previous year, with around 55 thousand. Phishing attacks can take many forms, such as corporate e-mail compromise (CEC), mass phishing, or smishing. These phishing e-mails represent a crucial risk for businesses. They can also lead to ransomware infections, which have also increased in recent years.

Data breaches Companies and governments are increasingly relying on technology to collect, analyze, and store personal data. This can lead to potential risks when such data is affected by cyber incidents. In Singapore, the number of exposed data points per thousand people reached 26 in 2022. Over the same period, around 154 thousand data sets were reported as leaked in the country.

Annual data on the nature of fraud and computer misuse offences. Data for the year ending March 2021 and March 2022 are from the Telephone-operated Crime Survey for England and Wales (TCSEW).

In 2023, fraud reports impersonating Microsoft caused the biggest financial losses, about 60 million U.S. dollars. Claims involving Publishers Clearing House impersonations caused financial losses of around 49 million U.S. dollars. Amazon impersonations ranked third by monetary losses, with 19 million U.S. dollars.

Phishing was the most prevalent form of scam in Australia in 2023, with over 108.6 housand incidents reported. There were also around 39.5 thousand reports of false billing.

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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

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Information about Counter Fraud work at Lincolnshire County Council, including use of powers, employees and fraud cases. This information is published as part of the Local Government Transparency Code. Please note that a fraud referral may be made (shown in the dataset under Fraud identified) but not investigated (see Fraud Investigated). For instance, there may be a lack of evidence, a reasonable explanation provided or management action may be taken following preliminary enquiries. Therefore, fraud investigated will usually be less than fraud identified. Also, figures for fraud and figures for irregularities are likely to be identical, as they are in practice not categorised any differerently. This dataset is updated annually each June. For any enquiries about this publication please contact counterfraud@lincolnshire.gov.uk.

Code repository for: Carrillo, P., Donaldson, D., Pomeranz, D. and Singhal, M., 2022. Ghosting the Tax Authority: Fake Firms and Tax Fraud.Contents: Contains the data creation and analysis code for the project.Abstract: An important but poorly understood form of firm tax evasion arises from “ghost firms”—fake firms that issue fraudulent receipts so that their clients can claim false deductions. We provide a unique window into this global phenomenon using transaction-level tax data from Ecuador. 5% of firms use ghost invoices annually and, among these firms, ghost transactions comprise 14% of purchases. Ghost transactions are particularly prevalent among large firms and firms with high-income owners, and exhibit suspicious patterns, such as bunching below financial system thresholds. An innovative enforcement intervention targeting ghost clients rather than ghosts themselves led to substantial tax recovery.

Stores information from law enforcement agencies about fugitive felons.

Medicaid Fraud Control Units (MFCU or Unit) investigate and prosecute Medicaid fraud as well as patient abuse and neglect in health care facilities. OIG certifies, and annually recertifies, each MFCU. OIG collects information about MFCU operations and assesses whether they comply with statutes, regulations, and OIG policy. OIG also analyzes MFCU performance based on 12 published performance standards and recommends program improvements where appropriate.

In 2023, PayPal was used in 28 percent of scam payments, ranking first among other payment apps and services. A further 24 percent of scam encounters involved Cash App, followed by Zelle with 20 percent.

In 2023, California was the U.S. state with the highest number of romance scams. In the measured year, individuals in this state reported 6,742 cases of romance scams. Florida followed, with 4,371 cases, while Texas ranked third, seeing 4,269 cases of romance scams.

In 2023, 11 percent of individuals in France reported being victims of fraud and online scams at least once in the last 12 months, while 75 percent stated they had not experienced any fraud or online scams. Furthermore, five percent of respondents reported being victims of harassment and online abuse, while 84 percent of them indicated they had not experienced such incidents.

Fraudulent transactions to online shopping scammers are on the rise worldwide. In 2021, the median monetary loss per online purchase scam reached 101 U.S. dollars, up from 96 dollars the previous year. According to a worldwide study, victims of online shopping scams lost money more easily than in the past. Indeed, the percentage of consumers who lost money after being targeted by online purchase scams went from 71 percent in 2015 to almost 75 percent in 2021.

Protect shoppers at all costs The bigger is the threat, the bigger is the required defense. In 2020, the size of the e-commerce fraud detection and prevention market was over 28 billion U.S. dollars, while it is expected to grow to over 69 billion U.S. dollars by 2025. If the size of such prevention measures might appear excessive, think again. In 2021, e-commerce losses to online payment fraud were expected to reach 20 billion U.S. dollars globally, marking a 14 percent increase from the previous year.

The importance of safe purchases Ensuring safe purchases to online consumers is an essential aspect of the shopping experience. According to a survey, more than eight in ten consumers in Mexico and the United States would opt for online shopping more often if vendors guaranteed safe transactions. A slightly lower percentage of Canadian and Australian consumers valued cybersecurity in online shopping, too.

According to a 2024 survey conducted in the United States, 53 percent of male online dating service users reported being a victim of a romance scam, while 47 percent of women who used such services reported the same.

A March 2023 survey among adults in the United States found that 45 percent of respondents encountered scam texts, e-mails, or calls daily. Around a quarter stated receiving scams every week, while ten percent said they experienced scams monthly. Overall, the frequency of encountering scams among men and women was similar.