Increasing need to detect and prevent fraudulent activities on the internet boosting the global FDP market, says Frost & Sullivan
Frost & Sullivan's recent analysis finds that enterprises' increasing need to detect and prevent fraudulent activities on the internet is accelerating the global fraud detection & prevention (FDP) market. FDP solutions leverage identification and authentication technologies to identify potentially fraudulent actions and help organizations investigate suspicious behaviors and inconsistent data elements, keeping organizations safe from financial and reputational damage. The FDP market will likely reach $15.44 billion by 2024 from $9.32 billion in 2020, an uptick at a compound annual growth rate (CAGR) of 13.5%.
Europe, the Middle East, and Africa (EMEA) and North America (NA) are the top two regions contributing to FDP market growth over the forecast period. EMEA's demand is largely driven by a strong regulatory environment, pushing the need for anti-fraud solutions. Cyber adversaries' increasing malicious activities on the internet targeting US firms will drive the demand for FDP solutions in NA.
"The rapid shift by enterprises to digital environments such as online banking and eCommerce during the pandemic resulted in a surge in cyberattacks," said Jarad Carleton, Director of Research, Security, Frost & Sullivan. "In turn, this has compelled companies to adopt advanced FDP solutions such as fraud management and fraud analytics to ensure overall security while simultaneously providing a seamless experience to the end-user."
Carleton added: "The dynamic regulatory landscape worldwide is also a key factor in driving the FDP market. Organizations willing to comply with new regulations such as the Payment Services Directive 2 (PSD2) will have no choice but to invest in anti-fraud solutions despite potential budgetary constraints."
To support business firms' digital transformation journey and ensure their safety, FDP vendors should focus on:
Practicing continuous user authentication: Market participants must demonstrate the efficacy and efficiency of continuous user verification solutions to their current and prospective clients.
Implementing application program interface (API) security: Market players should collaborate with API designers and data privacy specialists to design and implement the highest security standards.
Adopting behavioral biometrics: Vendors should encourage customers to deploy behavioral biometric security as it uses artificial intelligence (AI) and machine learning (ML) to enhance accuracy by minimizing false positives.
The Global Fraud Detection & Prevention (FDP) Market is the latest addition to Frost & Sullivan's Security research and analyses available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.