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.

In 2023, the number of people reporting a monetary loss due to online purchase scams jumped to 82.6. A year prior, the figure stood at 74 percent. The so called susceptibility rate did not go over 71.2 percent in 2015.

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.

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, there were over 14,000 incidents of online fraud that have been recorded in the Philippines. This was significantly higher than the number of such incidents in the previous year.

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.

A study counted approximately 80 cases of online scams per 1,000 inhabitants in Mexico in 2019. This number is almost 28 times that of Brazil, where 2.9 cases of scams per 1,000 people were recorded.

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).

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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

As of June 2023, around 38 percent of respondents in China had encountered prize or lottery-winning scams online. Other major cybersecurity issues included online shopping scams, online part-time job scams, and phishing websites.

Percentage of Canadians who have experienced an Internet security and/or privacy incident during the past 12 months, by type of incident.

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 a 2024 survey, when asked whether online scams and phishing have become more sophisticated due to the use of artificial intelligence (AI), around 36 percent stated they had become much more sophisticated. Another 36 percent believed they became somewhat more sophisticated, while only two percent said the scams were much less sophisticated.

According to Cognitive Market Research, the global Fraud Detection and Prevention market size is USD 29.0 billion in 2024 and will expand at a compound annual growth rate (CAGR) of 16.8% from 2024 to 2031. Market Dynamics of Fraud Detection and Prevention Market

Key Drivers for Fraud Detection and Prevention Market

Currently, the world is experiencing a digital revolution. Users of the internet today engage in a variety of online activities, including online banking and purchasing, in addition to conducting online inquiries and participating in online social networking. Due to the closure that was implemented during COVID-19, a substantial number of individuals were confined to their residences, and a substantial proportion of the population engaged in online transactions. Due to this, the quantity of fraudulent websites has surged significantly. The number of fraudulent websites that mimic companies and goods that transport products to customers' residences has increased in addition to the financial sector. These websites entice consumers to conduct online transactions.

Key Restraints for Fraud Detection and Prevention Market

Insufficiently qualified professionals to evaluate fraud assaults poses a serious threat to the Fraud Detection and Prevention industry.
The market also faces significant difficulties related to increase in the complexity of fraud.

Introduction of the Fraud Detection and Prevention Market

A compilation of processes and techniques that are intended to identify, monitor, and prevent fraud is known as fraud detection and prevention. The preliminary step in identifying the source of the issue is the detection of fraud, which must then be prevented either automatically or manually in the use of fraud detection software. A diverse array of cases, including money laundering, cyber security threats, tax evasion, fraudulent claims for insurance, fraudulent bank checks, identity theft, and terrorist financing, are all examples of fraudulent activities. These activities are prevalent in the financial institutions, the government, the health care public sector, and insurance sectors. An precipitous rise in the number of fraudulent websites and mobile applications has resulted from the increasing adoption of online applications and mobile banking services.

Of the Latin American countries included in the study, Mexico registered the highest number of scams in 2019: approximately 10.2 million. Brazil came second with nearly 613.5 thousand and Argentina third, with almost 13 thousand.

Exploratory factor analysis results: Factor loadings.

According to a survey on personal finance conducted during the fourth quarter of 2024 in the Philippines, 45 percent of respondents who had experienced digital fraud attempts were targeted with phishing attacks. In addition, 41 percent of respondents were targeted with smishing or phishing using text messages.

In 2021, 249.2 thousand fraud cases involving the use of the internet, mobile devices, computers, or other information and telecommunication technologies were recorded in Russia. Of them, 117.7 thousand crimes were conducted in the first half of the year. Nearly 150 billion Russian rubles were estimated to have been lost to online fraud in Russia in 2020.

In 2022, 59 percent of internet users in Sweden had experienced an online fraud attempt. Another share of 55 percent reported having received scam e-mails. Additionally, the percentage of users who encountered fake customer support during the measured period was 12 percent.

In 2022, approximately 29,000 men aged between 45 and 54 years in Italy were victims of online swindles and cyber fraud. Women of the same age that fell victim to online fraud and internet scams were 23,347 in 2022. In comparison, approximately 850 teenagers between 14 and 17 years were victim of cyber fraud and online swindlers. Approximately across all age demographics, men and male kids were more likely to fall victim to online fraud in the last examined period.