eCommerce Fraud Detection and Prevention Global Market Report 2024

The global ecommerce fraud detection and prevention market has grown exponentially in recent years. It will grow from $50.32 billion in 2023 to $61.01 billion in 2024 at a compound annual growth rate (CAGR) of 21.2%. The growth observed in the historical period can be attributed to manual review processes, the utilization of basic rule-based systems, limited payment options, early implementations of data analytics in the financial sector, and the establishment of security protocols.

The global ecommerce fraud detection and prevention market is expected to see exponential growth in the next few years. It will grow to $131.93 billion in 2028 at a compound annual growth rate (CAGR) of 21.3%. The anticipated growth during the forecast period can be ascribed to the increasing demand for online shopping, the adoption of advanced machine learning algorithms, the prevalence of behavioral biometrics, the implementation of AI-powered automation, global collaboration and data sharing, and the expanding use of multi-factor authentication (MFA). Prominent trends expected in this period encompass seamless integration with e-commerce platforms, the widespread adoption of biometric authentication, the utilization of geolocation and IP analysis, the implementation of cross-channel fraud prevention measures, and the incorporation of blockchain technology for secure transactions.

The e-commerce fraud detection and prevention market are poised for substantial growth, driven by the escalating transactions on e-commerce platforms. As businesses increasingly conduct transactions electronically through online platforms, the need for robust fraud detection and prevention tools becomes paramount. These tools, utilizing algorithm-based analysis, evaluate transaction risks and detect potential fraud, ensuring secure and trustworthy e-commerce experiences. According to the United Nations Conference on Trade and Development, the proportion of online retail sales to total retail sales rose from 16% to 19% in 2020, with global e-commerce sales reaching $26.7 trillion in 2021. This surge in e-commerce activities is a key driver propelling the growth of the e-commerce fraud detection and prevention market.

The e-commerce fraud detection and prevention market are experiencing growth due to an increase in the frequency of cyberattacks and frauds. In the digital realm, cyberattacks and frauds pose significant threats to the security, privacy, and integrity of online platforms. These malicious activities often lead to financial losses for e-commerce businesses through unauthorized transactions, chargebacks, and the compromise of sensitive information. A report by AAG highlighted a staggering 125% increase in cyberattacks worldwide, emphasizing the escalating threat landscape. As a result, the imperative to prevent financial losses and secure online transactions is a major driver fostering the growth of the e-commerce fraud detection and prevention market.

Technological advancement emerges as a key trend shaping the e-commerce fraud detection and prevention market. Major companies in this sector are leveraging advanced technologies to stay competitive. For instance, DG Financial Technology introduced Sift, an innovative AI-based fraud detection solution designed to swiftly identify and mitigate fraudulent activities in e-commerce and online spaces. Sift's capabilities extend to recognizing credit card fraud, preventing account takeovers, and minimizing the impact of chargebacks. By harnessing the power of artificial intelligence, Sift aims to streamline fraud-related operations, reduce damages caused by fraudulent activities, enhance prevention measures, and contribute to revenue optimization for businesses in the digital realm.

Major players in the e-commerce fraud detection and prevention market are actively focusing on product development, specifically in fraud detection solutions, to fortify their market positions. A fraud detection solution encompasses tools, technologies, and processes designed to identify and prevent fraudulent activities across various domains. Checkout.com, a prominent cloud-based payments service provider, launched Fraud Detection Pro, a highly adaptable solution combating the growing challenge of online payment fraud. This innovative solution, already in use by notable businesses like Curve and Delivery Hero, represents a significant step forward in enhancing fraud prevention measures. Fraud Detection Pro offers flexibility and revenue optimization, addressing the evolving landscape of digital payments and contributing to the market's overall growth.

In January 2022, ClearSale, a prominent Brazil-based e-commerce fraud protection company, successfully acquired ChargebackOps for an undisclosed sum. This strategic acquisition is geared towards expanding ClearSale's solution offerings and client portfolio, specifically in the domain of chargeback protection for retailers. ChargebackOps, the acquired company, is a US-based entity specializing in providing e-commerce fraud detection and prevention services.

Major companies operating in the ecommerce fraud detection and prevention market report are KSB SE & Co. KGaA, ITT Inc., Ruhrpumpen Group, Castle Pumps Ltd., AxFlow Holding AB, Flowserve Corporation, North Ridge Pumps Ltd., Tapflo Group, Vertiflo Pump Company, FLUX-Geräte GmbH, Salvatore Robuschi and C. S.r.l., Lenntech BV, Brinkmann Pumps GmbH + Co. KG, Gusher Pumps Inc., Tapflo Pumps UK Ltd., C.R.I. Pumps Pvt. Ltd., National Pump Company, Grundfos Pumps Corporation, Pentair PLC, Simflo Pump Inc., Process Systems Ltd., Neptuno Pumps Ltd., Sintech Precision Products Ltd., Ebara Corporation, Tsurumi Manufacturing Co. Ltd., Weir Group PLC, Kirloskar Brothers Limited, Shakti Pumps Ltd., WPIL Limited, Crompton Greaves Consumer Electricals Limited, Kishor Pumps Pvt. Ltd., Rotech Pumps & Systems Inc., T-T Pumps Ltd., V-Guard Industries Ltd., Vansan Water Technologies, and Zhejiang DOYIN Pump Industry Co. Ltd.

North America was the largest region in the ecommerce fraud detection and prevention market share in 2023. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the ecommerce fraud detection and prevention market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the ecommerce fraud detection and prevention market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The main categories of e-commerce fraud detection and prevention are cloud-based and on-premise solutions. Cloud-based solutions entail programs, services, or assets accessible on-demand over the internet through a cloud computing provider's server. Cloud-based e-commerce fraud detection and prevention systems automate fraud prevention measures, aiding organizations in enhancing their revenue through real-time machine learning. Various types of fraud addressed by these systems include card testing, credit card fraud, friendly fraud, identity theft, merchant fraud, phishing, and refund fraud. These solutions are utilized by small and medium-sized enterprises (SMEs) as well as large enterprises across industries such as automotive and transportation, banking, financial services, and insurance, consumer goods and retail, education, government and public sector, healthcare and life sciences, information technology, media and entertainment, telecommunications, travel, and hospitality.

This report provides e-commerce fraud detection and prevention market statistics, including e-commerce fraud detection and prevention industry global market size, regional shares, competitors with e-commerce fraud detection and prevention market share, detailed e-commerce fraud detection and prevention market segments, market trends, and opportunities, and any further data you may need to thrive in the e-commerce fraud detection and prevention industry. This e-commerce fraud detection and prevention market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The ecommerce fraud detection and prevention market includes revenues earned by entities by preventing various e-commerce frauds such as pyramid schemes, dubious phone calls, and charities fraud. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

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.


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