The global fraud detection and prevention market was valued at USD 33.13 billion in 2024 and is projected to reach USD 90.07 billion by 2030, growing at a CAGR of 18.7% from 2025 to 2030, highlighting the increasing importance of fraud mitigation measures in today’s digital landscape.

A major force behind this rapid growth is the increasing complexity and sophistication of cyberattacks. Modern fraud tactics are evolving quickly, prompting companies in critical industries—such as banking, e-commerce, and healthcare—to adopt advanced fraud detection technologies. These sectors are particularly vulnerable due to the large volume of sensitive transactions and data they handle.

The surge in online transactions has also played a key role in fueling market growth. As more consumers opt for digital payment methods, opportunities for cybercriminals to exploit system vulnerabilities have grown, necessitating more robust fraud prevention solutions. This shift is closely tied to the broader digital transformation across industries, where businesses are increasingly dependent on online platforms to conduct operations and manage transactions.

Data from the Federal Trade Commission (FTC) further underscores the urgency of implementing effective fraud detection mechanisms. In 2023, consumer-reported losses due to fraud exceeded USD 10 billion for the first time, marking a 14% increase compared to 2022. This rise in financial losses highlights the growing threat landscape and the pressing need for more advanced, proactive security measures.

To combat this, organizations are increasingly turning to innovations in Artificial Intelligence (AI) and Machine Learning (ML), which significantly improve fraud detection capabilities. These technologies enable real-time monitoring, predictive analysis, and automated threat identification, making it possible to detect and respond to fraudulent activities with greater speed and accuracy.

Additionally, as companies place greater emphasis on security, risk management, and regulatory compliance, the demand for sophisticated fraud prevention tools is expected to accelerate. Strict data protection laws and compliance frameworks—such as the General Data Protection Regulation (GDPR) and the Payment Card Industry Data Security Standard (PCI DSS)—are compelling organizations to invest in comprehensive fraud detection and prevention systems. This is especially crucial in industries like finance and healthcare, where adherence to data privacy regulations is not only mandatory but critical for maintaining trust.

Ultimately, as the cost of data breaches continues to rise and the consequences of non-compliance become more severe—including financial penalties and reputational damage—organizations are expected to prioritize fraud detection technologies. This growing emphasis on data protection, real-time monitoring, and compliance will drive the continued expansion of the fraud detection and prevention market in the years ahead.

Key Market Trends & Insights:

• In 2024, the North American fraud detection and prevention industry held a commanding position in the global market, accounting for a substantial revenue share of 37.3%. This dominance reflects the region's advanced technological infrastructure, stringent regulatory environment, and high adoption rates of digital payment and online transaction systems, which collectively drive demand for robust fraud prevention solutions.

• Within this regional market, the United States emerged as the leading country, taking the largest portion of the fraud detection and prevention market revenue. The U.S.’s mature financial sector, widespread e-commerce penetration, and heightened focus on cybersecurity contribute significantly to its market leadership in this domain.

• When examining the market by components, the solution segment stood out as the largest contributor, capturing a significant 62.4% revenue share in 2024. This indicates that organizations are heavily investing in comprehensive fraud detection and prevention software and platforms, rather than solely relying on consulting or managed services. Solutions such as AI-driven analytics, real-time monitoring systems, and transaction screening tools are central to this segment’s growth.

• From the application perspective, the payment fraud segment dominated the market, generating the highest revenue share in 2024. This dominance is driven by the rising volume of digital and contactless payments, which create ample opportunities for fraudsters to exploit vulnerabilities. Hence, businesses across industries are prioritizing the deployment of fraud detection solutions that specifically target payment-related fraud.

• Finally, when segmented by organization size, large enterprises accounted for the largest share of the market’s revenue in 2024. These enterprises often face a higher risk of fraud due to the scale and complexity of their operations, prompting them to allocate substantial budgets toward sophisticated fraud detection and prevention technologies. Their focus on protecting extensive customer data and ensuring regulatory compliance further reinforces their dominant market position.

Order a free sample PDF of the Fraud Detection And Prevention Market Intelligence Study, published by Grand View Research.

Market Size & Forecast:

• 2024 Market Size: USD 33.13 Billion

• 2030 Projected Market Size: USD 90.07 Billion

• CAGR (2025-2030): 18.7%

• North America: Largest market in 2024

• Asia Pacific: Fastest growing market

Key Companies & Market Share Insights:

The fraud detection and prevention industry is shaped by several influential players who contribute significantly to its evolving landscape. Among these, ACI Worldwide stands out for its extensive suite of payment fraud detection solutions, delivering comprehensive tools that help financial institutions and merchants combat fraud. Meanwhile, Experian Information Solutions, Inc. is recognized for its advanced identity verification services, which play a crucial role in mitigating fraud risks by ensuring the authenticity of users and transactions.

IBM Corp. has made significant advancements by leveraging Artificial Intelligence (AI)-driven technologies to provide real-time anomaly detection, enabling businesses to identify suspicious activities as they happen. Similarly, SAS Institute Inc. specializes in sophisticated analytics and machine learning applications, empowering organizations to effectively detect and analyze fraudulent behaviors and patterns across diverse sectors.

Focusing on ACI Worldwide, the company is a leader in providing electronic payment solutions, with a particular emphasis on fraud detection and prevention technologies tailored for banks, financial institutions, and merchants. ACI offers a broad portfolio of products aimed at enhancing the security of financial transactions and minimizing fraud-related risks. Their fraud management solutions are built on the use of machine learning algorithms and behavioral analytics, allowing the identification and prevention of various fraud types, including payment fraud and account takeovers. By integrating seamlessly into existing payment processes, ACI assists organizations in safeguarding customer transactions while also ensuring adherence to evolving regulatory requirements.

In addition to these global players, AltexSoft, a technology consulting firm, contributes to the industry by developing customized software solutions for fraud detection and prevention, tailored to meet specific business demands. The company harnesses advanced analytics, machine learning, and AI technologies to build tailored frameworks that effectively identify and combat fraudulent activities. AltexSoft’s deep expertise in data science and software development enables it to create robust fraud detection systems designed to enhance security measures, reduce false positives, and improve overall risk management for its clients across various industries.

Key Players

• ACI Worldwide

• AltexSoft

• BAE Systems

• Dell Inc.

• Equifax, Inc.

• Experian Information Solutions, Inc.

• Fiserv, Inc

• IBM Corp.

• NICE

• Oracle

• SAP SE

• SAS Institute Inc.

• SEON Technologies Ltd.

• Signifyd

• Software GmbH

Explore Horizon Databook – The world's most expansive market intelligence platform developed by Grand View Research.

Conclusion:

The fraud detection and prevention market is experiencing significant growth, driven by the increasing sophistication of cyberattacks and the rise in online transactions. As businesses across various sectors, such as banking, e-commerce, and healthcare, adopt advanced fraud detection solutions, the demand for robust systems to protect sensitive data and ensure compliance with regulatory standards intensifies. The digital transformation across industries further accelerates this trend, necessitating real-time monitoring and analysis of transactions. Additionally, advancements in technologies such as Artificial Intelligence (AI) and Machine Learning (ML) enhance the capabilities of fraud detection solutions, enabling organizations to proactively identify and mitigate fraudulent activities.