Fraud Detection and Detection: Global market Scenario

Fraud, defined as the illegal act of obtaining something through a deliberately deceptive activity and wilful misrepresentation in order to secure an unfair and unlawful gain, is fast gaining centre stage due to its relevance in the Banking and Financial sector. With an increase in the number and the complexity of transactions, tracking and monitoring data becomes very essential, yet complicated. Fraud is proving to becomes a threat to both organizations and as well as to the consumers. The industry, having a growth of 15.6%, currently has North America (especially U.S.A and Canada) occupying the largest share. However the markets with the largest rates of growth are Asia-Pacific and the Latin America Market with countries like China, India, Brazil, and Mexico adopting the technology at a high pace.

Though the technology is of utmost importance in the banking and financial services, the Fraud Detection and Prevention services are deployed in multiple domains and industries. Ranging from insurance and consumer retails and Telecommunication & Information Technology (IT) to Manufacturing and Production, and the Public & Government Sector; various industries including real estates, non-governmental organizations and educational institutions have employed the technology in tackling cyber-crimes and hacking.

The BFSI sector occupies the largest share in the projected period of 2014-2020. However projections for the next five years indicate that the Government and the public sector will identify high growth rate. This is because both these sectors involve the highest amount of money and valuable data; and activities such as fraud and theft thrive on such resources.

The highest market share in the domain is expectedly occupied by the BFSI. This is so because of the volume of credit and debit card related frauds, losses due to multiple or faulty transactions, account hacking, virus attacks etc. The same reasons can be held accountable for the rise in the shares of the retail sector, followed by the insurance sector. Insurance providers are employing high-tech fraud detection and prevention system for catching frauds among insurance claimers; activities which usually cause a notable loss in the net revenue of an organization.

Retail and Telecom sector is another sector observing a high market growth. Additionally there are sectors such as Professional service, auditing and manufacturing sectors that though currently have a small share of the market, are expected to exhibit a relatively fast growth in the near future. Logistics and Utilities are also sectors that show immense promise in the context of the Fraud Detection and Prevention market.

Market research has indicated that the next five years will see a growth in the APAC and LA market in the FDP domain. However, it will take some time for the rest of the world to catch up with the market share that North America currently occupies.

In the order of the highest growth in the segment, Retail sector will exhibit the highest growth, followed by the growth in the Insurance and the Banking sector.

Studies also suggest that authentication will be area of prime importance in the sector. The versatility of the services makes the technology applicable in domains even beyond the current scope of the application. This, however, will emerge only with time and economic evolution.

SaiKiran Kadam is an Analyst working with Mordor Intelligence, a market research consulting firm which specializes in Market Research Consulting, Market Research Reports, Market Sizing Reports, Industry Research Reports.