ECommerce Fraud Detection and Prevention Market Report 2025

The ecommerce fraud detection and prevention market size has grown exponentially in recent years. It will grow from $61.01 billion in 2024 to $73.96 billion in 2025 at a compound annual growth rate (CAGR) of 21.2%. The growth in the historic period can be attributed to manual review processes, basic rule-based systems, limited payment options, early data analytics, security protocols.

The ecommerce fraud detection and prevention market size is expected to see exponential growth in the next few years. It will grow to $160.02 billion in 2029 at a compound annual growth rate (CAGR) of 21.3%. The growth in the forecast period can be attributed to growing demand for online shopping, advanced machine learning algorithms, behavioral biometrics, AI-powered automation, global data sharing and collaboration, multi-factor authentication (MFA) expansion, integration of predictive analytics. Major trends in the forecast period include integration with e-commerce platforms, biometric authentication, geolocation and IP analysis, cross-channel fraud prevention, blockchain for secure transactions.

The increasing volume of transactions on eCommerce platforms is expected to drive the growth of the eCommerce fraud detection and prevention market. E-commerce platforms facilitate business transactions primarily conducted online via the internet. As transaction volumes rise, the demand for fraud detection and prevention tools and services grows, as these solutions assess the risk of each transaction and identify high-risk ones through algorithm-based analysis. For example, in November 2023, a government report from the UK indicated that eCommerce revenues in the country are expected to grow at an average annual rate of 12.6% by 2025, making the UK the third-largest eCommerce market globally, after China and the U.S. Revenues are projected to reach $285.6 billion by 2025. Thus, the rise of eCommerce platforms is fueling the expansion of the eCommerce fraud detection and prevention market.

The rising frequency of cyberattacks and fraud is fueling the growth of the e-commerce fraud detection and prevention market. Cyberattacks and fraud refer to malicious digital activities aimed at compromising the security, privacy, or integrity of computer systems, networks, and online platforms. These attacks often lead to substantial financial losses for e-commerce businesses due to unauthorized transactions, chargebacks, and stolen sensitive information. Preventing such financial losses is a key factor driving the adoption of effective fraud detection solutions. For instance, in October 2023, a report by AAG, a UK-based IT service provider, highlighted a 125% increase in global cyberattacks, with threats to individuals and organizations growing further in 2022. Consequently, the rising frequency of cyberattacks and fraud is propelling the expansion of the e-commerce fraud detection and prevention market.

Technological advancements are emerging as a key trend in the e-commerce fraud detection and prevention market. Leading companies in this space are adopting cutting-edge technologies to maintain their competitive edge. For instance, in October 2022, DG Financial Technology, a Japanese payment service provider specializing in online payment solutions with a strong presence in Japan, introduced Sift, an AI-powered fraud detection solution. Sift is a comprehensive tool designed to quickly identify and mitigate fraudulent activities on e-commerce platforms and other online spaces using artificial intelligence. It addresses issues such as credit card fraud, account takeovers, and chargebacks, streamlining fraud prevention processes while minimizing losses from fraudulent activities and optimizing revenue for businesses in the digital sector.

Major players in the e-commerce fraud detection and prevention market are focusing on product development, including innovative fraud detection solutions, to strengthen their market position. Fraud detection solutions encompass tools, technologies, and processes aimed at identifying and preventing fraudulent activities across various sectors, especially in finance, online transactions, and digital services. For example, in October 2022, Checkout.com, a UK-based cloud-based payment service provider, launched Fraud Detection Pro, a highly flexible solution designed to tackle the growing problem of online payment fraud. This solution is already being employed by major companies like Curve and Delivery Hero, representing a significant advancement in fraud prevention efforts and offering businesses operating in the digital payments landscape greater flexibility and revenue optimization.

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 are Forter, Riskified, Signifyd, Kount, Sift, ACI Worldwide, Fiserv PLC, LexisNexis Risk Solutions, Experian, ClearSale, Accertify, FICO, TransUnion, PayPal, ThreatMetrix, Cybersource, RSA Security, IDology, NoFraud, Emailage, Fraud.net, Radial, Pipl, Ekata, iovation, NS8 Inc., Seon, BioCatch, Trustpilot, Feedzai.

North America was the largest region in the ecommerce fraud detection and prevention market share in 2024. 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.

E-commerce fraud detection and prevention involves the use of machine learning algorithms, real-time monitoring, and methods such as multi-factor authentication to detect and prevent fraudulent activities, ensuring the security of online transactions and protecting businesses and consumers alike. Implementing effective eCommerce fraud detection and prevention measures is crucial for safeguarding online transactions, preserving customer trust, and reducing financial losses caused by fraud.

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.

The e-commerce fraud detection and prevention market research report is one of a series of new reports that 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.

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