Online Payment Fraud Detection Market Thrives During COVID-19

Dec 16, 2020

Due to the COVID-19 outbreak, the global fraud detection and prevention market is projected to generate about $145.7 billion in revenue by the year 2026. This is at a  Compound Annual Growth Rate (CAGR) of 28.4%, according to Business Wire.

With the uncertain times, we currently live in, millions of people are currently working online from home. Due to lockdowns and other government and state restrictions, consumers are also purchasing their goods and services online. However, with the surge of the pandemic also came a surge in cyberattacks and fraud. That is precisely why the Fraud Detection and Prevention (FDP) market will continue to grow as more of their solutions and services will be greatly in demand. 

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The Banking, Financial Services, and Insurance (BFSI) segment is anticipated to grow at the highest CAGR within the FDP market. This is directly followed by healthcare, retail and e-Commerce, and many others. As many consumers, some for the first time, are learning to navigate the digital payment environment, the pandemic has set the stage for fraudsters to find any weak links and attack accordingly. As a result of these potential threats, banks are hiking up their security measures. 

Furthermore, consumers are also turning to their mobile phones for alternative payment services, like mobile wallets. Since mobile phones have become a preferred and almost a “central operating device”, the need for tighter security measures at the “endpoints” are in order. Add to that the millions of remote employees that are now working from home, more banking functions are taking place in the cloud. This only increases the demand for FDP services and solutions. 

The healthcare industry is also set for massive growth in 2020. Healthcare systems require a secure IT infrastructure in order to handle sensitive patient information with great speed and flexibility. The number of electronic health records is rising. As a result, more healthcare providers are relying on secure storage cloud solutions to meet these large numbers of cases. Also due to lockdowns and other restrictive measures, both private doctors and healthcare institutions are giving consultations via online. No matter how it’s stored, fraudsters are hard at work, creating new ways to attack and steal this data. 

North America Has The Highest Market Share On FDP Market

COVID-19 has severely impacted the North American region on many levels. First of all, it has the highest amount of immigrants traveling within the region. There was no “initial stage lockdown” in the country. This only helps spread the disease at an accelerated pace. The region is made up of two countries, the U.S. and Canada, and both are fairly large economies. As a result, this region has been a major adopter of FDP services and solutions. There is also a “large-scale internet penetration” and major FDP solution providers are present in that region.

Looking Ahead

It is clear that the need for fraud detection and prevention will continue to grow as more consumers continue to conduct their business and purchases exclusively online. This leaves so many businesses and consumers vulnerable to cyberattacks and fraud. 

The key is for companies to continue to seek robust fraud detection and prevention tools that will keep their company and consumer information safe. 

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