The global fraud detection and prevention technology market is likely to grow in the coming years, steered by rising applications across several industries. According to a report by Fortune Business Insights, titled “Fraud Detection and Prevention Technology Market Size, Share and Global Trend By Deployment (Cloud & On-premises), By Service Type (Fraud Analytics & Authentication), By Industry Vertical (IT and Telecommunication, Retail, Consumer Electronics, Manufacturing, Automotive, Transportation and Logistics, Energy and Utilities) and Geography Forecast till 2025,” the market is likely to witness accelerated growth in the coming years with the advent of artificial intelligence (AI)- integrated systems and increasing operational efficacy.
The fraud detection and prevention (FDAP) technology is deployed across several industries such as research, banking, and airlines for security purposes. The entire process of fraud detection and prevention is integrated as an embedded system, with inclusion of hardware as well as software. Recent advancements in AI-enabled systems and cloud computation are likely to favour the growth of this market in the coming years.
The Industry Fraud Prevention (IFP) Program has a Huge Global Impact
In 2016, the International Air Transport Association (IATA) and Institute introduced the ‘Industry Fraud Prevention Program’ with an aim of detecting and minimizing frauds across several industries. With several requests from small-scale companies and initiatives from established companies, the IATA launched this program to reduce fraudulent cases related to payment, sales, and cyber activities.
According to the IATA, the Airline Industry is associated with frauds that account for a globally estimated value of around US$ 1 Bn every year. The IFP aims to minimize economic losses due to fraudulent activities by using data analytics and provide fraudulent knowledge at industrial levels to minimize losses in the future. Ever since the IFP was introduced, it has been adopted by many companies and this program has received backing and investments from large scale companies as well as investor firms. The IFP has a positive impact on the global fraud detection and prevention technology market and is likely to boost the market in the coming years.
The advent of Big Data Analytics and AI Aid Growth
Recent advancements in big data analytics have boosted the global fraud detection and prevention technology market. Big Data concepts can massively aid the growth of the global FDAP market, due to their ability to monitor and track fraudulent cases as well as prevent future scamming with the help of predictive analysis. The concept of artificial intelligence has been a game changer in the global FDAP market. The integration of AI and cloud computing has created a favorable platform to detect fraudulent financial activities at a rapid pace.
AI allows identification of suspicious and malicious activities with the help of efficient machine learning algorithms. Various companies have been encouraged to use this technology within their products. An instance of the AI-enabled cloud computation is the collaboration of ManticGames with TAS Group. The partnership was aimed at developing an efficient fraud detection system with the collaboration of Mantic’s AI platform with TAS’ advanced solutions for fraud detection. Growing mergers and acquisitions are likely to boost the global fraud detection and prevention technology market in the forthcoming years.
Some of the leading companies that are operating in the global fraud detection and prevention technology market are HCL Technologies Limited, IBM Corporation, Oracle Corporation, SAS Institute Inc. Fair Isaac Corporation, SAP SE, BAE Systems, ACI Worldwide, NCR Limited, Lavastorm, and Threat Metrix.