Fraud Management in Banking

Global Fraud Management in Banking Market to Reach US$26.6 Billion by 2030

The global market for Fraud Management in Banking estimated at US$9.2 Billion in the year 2024, is expected to reach US$26.6 Billion by 2030, growing at a CAGR of 19.4% over the analysis period 2024-2030. Solutions, one of the segments analyzed in the report, is expected to record a 17.5% CAGR and reach US$16.5 Billion by the end of the analysis period. Growth in the Services segment is estimated at 22.9% CAGR over the analysis period.

The U.S. Market is Estimated at US$2.5 Billion While China is Forecast to Grow at 25.9% CAGR

The Fraud Management in Banking market in the U.S. is estimated at US$2.5 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$6.1 Billion by the year 2030 trailing a CAGR of 25.9% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 15.6% and 17.2% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 16.1% CAGR.

Global Fraud Management in Banking Market – Key Trends & Drivers Summarized

Why Is Fraud Management a Strategic Imperative for Today’s Banking Sector?

Fraud management has become a top priority for banks and financial institutions worldwide, as they face an unprecedented surge in cybercrime, identity theft, money laundering, and digital payment fraud. The rapid digitization of banking services—fueled by mobile banking, contactless payments, online transactions, and open banking—has dramatically expanded the threat landscape. Traditional security methods are proving insufficient against sophisticated fraud schemes, such as account takeover, phishing, synthetic identity fraud, and real-time payment manipulation. As a result, banks are under increasing pressure to adopt advanced fraud management frameworks that not only detect fraud in real time but also prevent it proactively without compromising customer experience. Regulatory bodies across the globe are also tightening compliance requirements around KYC (Know Your Customer), AML (Anti-Money Laundering), and transaction monitoring, making robust fraud detection mechanisms an operational necessity. Furthermore, consumer trust is closely tied to a bank’s ability to safeguard assets and data. Any breach or fraudulent activity not only incurs financial losses but also damages reputational capital. As fraud becomes more dynamic and multi-channel, financial institutions are transitioning from reactive defenses to intelligent, real-time fraud prevention systems embedded across all banking touchpoints.

How Are Technology and AI Transforming the Future of Fraud Prevention?

Technological innovation is redefining how banks identify, analyze, and prevent fraud, with artificial intelligence (AI), machine learning (ML), and behavioral analytics leading the charge. Traditional rule-based systems are increasingly being replaced or augmented by AI-driven models that can learn from historical and real-time data to recognize patterns, detect anomalies, and flag suspicious activities across millions of transactions in seconds. Behavioral biometrics, which monitor user behavior such as keystroke dynamics, touch pressure, and navigation patterns, are becoming a key line of defense against account takeover and insider threats. Advanced analytics tools are enabling banks to create customer risk profiles, predict fraud likelihood, and take preemptive actions. Meanwhile, big data platforms allow for the aggregation and analysis of diverse datasets—including transaction records, device IDs, IP addresses, geolocation, and third-party intelligence—enhancing fraud visibility across digital ecosystems. Integration with real-time alerting systems and automated workflows further accelerates incident response. Moreover, the use of blockchain for secure identity verification and distributed ledgers for transparent transaction tracking is being explored to add new layers of fraud resistance. These technologies collectively enable a shift from static defenses to adaptive, predictive, and context-aware fraud management ecosystems in the banking sector.

Which Banking Segments and Global Markets Are Driving Demand for Fraud Management Solutions?

Fraud management solutions are seeing robust adoption across retail banking, corporate banking, digital-only banks, and fintech platforms, each facing distinct challenges and fraud vectors. In retail banking, the rise of mobile wallets, peer-to-peer transfers, and e-commerce has intensified the need for consumer authentication and transaction monitoring. Corporate banks are increasingly deploying fraud management tools to protect large-value transactions, treasury operations, and trade finance systems from insider fraud and cyberattacks. Neobanks and fintech firms, with their digital-first models, require agile, scalable fraud prevention solutions that operate across APIs, embedded finance services, and cross-border transactions. Payment service providers and card networks are also investing heavily in fraud detection infrastructure to meet regulatory requirements and customer expectations. Geographically, North America leads the market, driven by high digital banking adoption, complex fraud typologies, and regulatory frameworks like the Bank Secrecy Act (BSA) and the USA PATRIOT Act. Europe follows, influenced by GDPR, PSD2, and strong directives on AML and customer authentication. Asia-Pacific is emerging rapidly due to the explosion of digital wallets, mobile payments, and cross-border remittances in countries such as India, China, and Southeast Asian nations. The Middle East, Africa, and Latin America are increasingly adopting fraud management systems as digital banking expands and regulatory oversight intensifies. These regional trends underscore the global urgency for scalable, intelligent fraud mitigation strategies in a hyper-connected financial world.

What Are the Primary Drivers Fueling the Growth of the Fraud Management Market in Banking?

The growth in the fraud management in banking market is driven by several critical factors linked to digital transformation, evolving fraud patterns, regulatory obligations, and technological capabilities. First, the global acceleration of digital banking, e-commerce, and cashless economies has exponentially increased the number of transaction points vulnerable to fraud, necessitating comprehensive and integrated fraud prevention frameworks. Second, the rise in real-time payment systems and instant fund transfers has reduced the window for fraud detection, pushing banks to adopt real-time monitoring tools and AI-based systems capable of responding within milliseconds. Third, the increasing sophistication of cybercriminals—leveraging AI, social engineering, and deepfakes—requires banks to implement dynamic and adaptive fraud defense mechanisms that go beyond conventional rules-based systems. Fourth, stringent regulatory mandates across jurisdictions—including AML, KYC, and customer due diligence—are compelling banks to invest in fraud detection technologies that support compliance while minimizing risk exposure. In addition, customer expectations for secure yet seamless digital experiences are prompting financial institutions to adopt low-friction, multi-factor authentication and intelligent risk scoring. The convergence of fraud management with identity verification, cybersecurity, and digital onboarding platforms is also creating unified security ecosystems. Finally, growing partnerships between banks, fintechs, and fraud technology providers are accelerating innovation, enabling the deployment of modular, cloud-native, and AI-driven fraud management solutions tailored to diverse banking environments. These multifaceted drivers are setting the foundation for a resilient, intelligent, and future-ready fraud prevention architecture in global banking.

SCOPE OF STUDY:

The report analyzes the Fraud Management in Banking market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Component (Solutions, Services); Fraud Type (Payment Fraud, Loan Fraud, Identity Theft, Money Laundering, Other Fraud Types); Application (Fraud Detection & Prevention Systems, Identity & Access Management, Customer Authentication, Transaction Monitoring, Other Applications)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 39 Featured) -

• ACI Worldwide
• Advanced Fraud Solutions
• BAE Systems
• ComplyAdvantage
• CSI (Computer Services Inc.)
• Equifax
• Experian
• Feedzai
• FICO (Fair Isaac Corporation)
• FIS Global
• Fiserv
• IBM Corporation
• Jack Henry & Associates
• LexisNexis Risk Solutions
• NICE Actimize
• Oversight Systems
• RSA Security LLC
• Sardine
• SAS Institute Inc.
• Verafin (a Nasdaq company)

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