Financial Fraud Detection Software Global Market Report 2024

The financial fraud detection software market size has grown rapidly in recent years. It will grow from $15.04 billion in 2023 to $17.18 billion in 2024 at a compound annual growth rate (CAGR) of 14.2%. The growth observed in the historical period can be attributed to several factors, including the increasing instances of cyberattacks and data breaches, a heightened focus on proactive fraud prevention strategies, the imposition of stringent regulatory requirements for financial institutions, and a rise in insider threats within financial organizations.

The financial fraud detection software market size is expected to see rapid growth in the next few years. It will grow to $28.95 billion in 2028 at a compound annual growth rate (CAGR) of 13.9%. The anticipated growth in the forecast period can be attributed to factors such as the increasing volume and complexity of financial transactions, the expansion of mobile banking and online transactions, a growing adoption of digital payment methods, and the demand for real-time fraud detection capabilities. Noteworthy trends expected in the forecast period encompass advanced data visualization, collaboration between financial institutions, integration with anti-money laundering systems, and partnerships with law enforcement agencies. Additionally, there is a trend towards integration with enterprise risk management systems, reflecting an increased emphasis on comprehensive risk mitigation strategies within the financial sector.

The financial fraud detection software market is poised for growth, driven by the escalating volume of digital financial transactions. Digital financial transactions, conducted through online platforms, mobile devices, and other digital channels, have seen a surge due to the widespread availability of digital banking services, offering increased convenience, accessibility, and efficiency in monetary exchanges. Financial fraud detection software plays a crucial role in securing these transactions by utilizing advanced algorithms to identify and prevent fraudulent activities. Notably, data from the International Monetary Fund indicates a significant rise in the value of mobile money and internet banking transactions in low and middle-income countries between 2019 and 2021. In low-income countries, mobile money transactions increased from approximately 40% to 70% of GDP, while in middle-income countries, mobile and internet banking transactions rose from 225% to 324% of GDP. This surge in digital financial transactions is a key driver for the growth of the financial fraud detection software market.

Leading companies in the financial fraud detection software market are strategically focusing on the development of open-source platforms to gain a competitive advantage and offer more robust security solutions. Open-source platforms, which make their source code available to the public for viewing, modification, and distribution, are gaining prominence. In February 2024, the Linux Foundation launched Tazama, the first open-source platform dedicated to real-time fraud management in financial transactions. Tazama aims to enhance fraud management in digital payments by providing cost-effective real-time monitoring. This initiative represents a significant milestone in the ongoing fight against financial fraud, offering central banks and financial institutions a cost-effective open-source software solution for real-time fraud prevention.

In November 2022, Mangopay S.A.S., a France-based payment infrastructure provider, made a strategic acquisition by purchasing Nethone, a Poland-based software company specializing in artificial intelligence (AI)-powered fraud detection software. This acquisition is expected to bolster Mangopay's capabilities in fraud detection and prevention, particularly in marketplaces and platform-specific payment infrastructure. The integration of Nethone's AI-driven expertise into Mangopay's offerings further positions the company to address evolving challenges in securing digital financial transactions.

Major companies operating in the financial fraud detection software market are International Business Machines Corporation, American Express Company, Oracle Corporation, Thales Group, Fiserv Inc., SAP SE, Experian Information Solutions Inc., TransUnion LLC, SAS Institute Inc., Verisk Analytics Inc., NICE Ltd., ACI Worldwide Inc., Fair Isaac Corporation, Software AG, Cyxtera Technologies Inc., RSA Security LLC, BAE Systems Applied Intelligence, Bottomline Technologies Inc., Riskified Ltd., Signifyd Inc., Featurespace Limited, Guardian Analytics Inc., Feedzai Inc.

North America was the largest region in the financial fraud detection software market in 2023. The regions covered in the financial fraud detection software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the financial fraud detection software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Financial fraud detection software pertains to specialized technological solutions crafted to identify and thwart fraudulent activities occurring within financial transactions and systems. These software tools leverage sophisticated algorithms and machine learning techniques to scrutinize extensive datasets, identifying and flagging suspicious patterns or anomalies indicative of potential fraudulent behavior.

Financial fraud detection software primarily comes in two main types, solution and service. A solution entails a comprehensive approach involving a combination of products, services, and strategies aimed at addressing a specific problem or fulfilling a particular need. Various types of fraud targeted by these solutions include money laundering, identity theft, debit and credit card frauds, claim frauds, transfer frauds, and others. Deployment modes encompass on-premise and cloud, catering to a diverse range of end-users such as banking, financial services and insurance (BFSI), healthcare, information technology (IT) and telecommunication, manufacturing, educational institutions, government, and others.

The financial fraud detection software market research report is one of a series of new reports that provides financial fraud detection software market statistics, including financial fraud detection software industry global market size, regional shares, competitors with a financial fraud detection software market share, detailed financial fraud detection software market segments, market trends and opportunities, and any further data you may need to thrive in the financial fraud detection software industry. This financial fraud detection software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The financial fraud detection software market consists of revenues earned by entities by providing services such as fraud analytics, identity verification, real-time monitoring of financial transactions, compliance management, advanced algorithms and artificial intelligence techniques, and risk management consulting. The market value includes the value of related goods sold by the service provider or included within the service offering. The financial fraud detection software market also includes sales of point-of-sale (POS) terminals, EMV (Europay, Mastercard, and Visa) card readers, biometric scanners, secure PIN entry devices (PEDs), security cameras, and surveillance systems. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


This product will be delivered within 3-5 business days.