North America Fraud Detection and Prevention Market

North America Fraud Detection and Prevention Market Size (2022 - 2027)

The North American fraud detection and prevention market is expected to grow from $2.8 billion in 2020 to $6.12 billion in 2026, at a CAGR of 10.0% over the forecast period 2022 - 2027.

Fraud detection and prevention systems are a type of software applications that offer analytical solutions for identifying and preventing frauds in an enterprise. They are used to analyse data from a different data sources to recognize inaccuracies, such as a phantom transactions.

Online businesses depend mainly on electronic transactions for their products and services offered. Along with the increase in the number of customers buying online, fraudulent activity has also increased. Frauds, such as identity theft, business fraud and triangulation, membership and cleanup fraud, phishing, page theft, and counterattacks occur during online transactions. The Artificial Intelligence (AI) ​​and Machine Learning (ML) capabilities will significantly reduce labor costs, help discover new models, and create predictive models from raw data. Technologies allow automated decisions in real-time to detect fraudulent activity. AI and ML help data scientists to identify fraudulent transactions in large data volumes.

Health fraud is perpetrated in different ways and almost all insurance companies are affected. False allegations of medically unnecessary services, such as unnecessary generalized tests, ambulance transportation, even if the patients are completely mobile and at no risk are some discrepancies in the healthcare. To fight several such frauds, healthcare providers must integrate complete fraud detection solutions or follow certain compliance programs to detect and prevent fraud. Most healthcare facilities have started implementing anti-fraud systems to detect, manage and prevent administrative fraud and record-keeping quickly and efficiently, thereby accelerating revenues in the North American fraud detection and prevention market.

Market Drivers:

The main factors likely to stimulate the North American market are the significant revenue losses encountered by organizations due to the rise in fraud attacks, the augmented usage of digital transactions in various industries and the surge in level of sophistication. The USA registered a large number of cyber-attacks in recent years, which is acting as a significant contributor to the growth of the North American fraud detection and prevention market.

Market Restraints

In general, these fraud detection and prevention solutions should provide a versatile combination of functions to gather and analyze information, produce correct conclusions, take action based on results, and ultimately produce a complete result. For instance, the address verification system often blocks people who travel frequently, do not have permanent residence, or are students. As a result, limited visibility of data often produces false-positive results, hindering market growth.

NORTH AMERICA FRAUD DETECTION AND PREVENTION MARKET REPORT COVERAGE:

North America Fraud Detection and Prevention Market segmentation:

North America Fraud Detection and Prevention Market - By Component:

• Solutions
  • Fraud
  • Authentication and Governance
  • Risk Analysis and Compliance
• Services
  • Professional Services
  • Managed Services

Among these, the authentication solution held the most substantial market share attributed to the rise in data breaches in almost all sectors. Moreover, mandatory regulations like Know Your Customer (KYC) and the revised Payment Services Directive (PSD2) are fuelling the adoption of biometric authentication, especially in banking services.

North America Fraud Detection and Prevention Market - By Application:

• Insurance Claims
• Money Laundering
• Electronic Payments
• Others

Of these, the insurance claims division is foreseen to witness the rapid growth over the evaluated period.

North America Fraud Detection and Prevention Market - By Deployment:

• Cloud
• On-Premise

Of these, the cloud deployment held the most significant market share in 2020 and is supposed to expand over the outlook period.

North America Fraud Detection and Prevention Market - By Organization:

• Small and medium enterprises (SMEs)
• Large companies

Of these, large companies accounted for more than half of the overall business share. Large companies are shifting towards digitization, leading to the creation of large volumes of financial transactions.

Regional Analysis

North America recorded around $6.51 billion in 2018 and is determined to lead the global industry share in the local fraud detection and prevention market over the calculated period. In 2018, USA dominated the North American market due to the early adoption of online services and electronic retail in the area, followed by Canada.

Key players in the market

1. SAP SE
2. Oracle Corporation
3. BAE Systems PLC
4. SAS Institute Inc
5. ACI Worldwide Inc
6. IBM Corporation
7. Fiserv Inc
8. Fair Isaac Corporation
9. Dell Technologies Inc
10. Software AG

Recent developments:

• In June 2019, BAE Systems partnered with Arachnys, one of the leading providers of CRI solutions, to meet AML and compliance requirements and offer a precise and effective fraud detection and prevention solutions.
• In January 2019, NICE presented the IFM-X Integrated Fraud Management (IFM) platform which leverages automation and ML technologies to minimize fraud and money laundering attacks and reduce deployment overall system.
• In October 2018, BAE Systems and Mphasis made an alliance to secure companies against the development of various fraudulent activities by offering related detection and money laundering solutions to financial institutions.