AI in Fraud Management Market

2021 Analysis and Review: AI in Fraud Management Market by Solution, Application, Enterprise Size, and Industry for 2021 – 2031

AI in Fraud Management Industry Snapshot

The AI in fraud management solutions revenue totaled ~US$ 6.5 Bn in 2020, according to Future Market Insights. The overall market is expected to reach ~US$ 39.5 Bn by 2031, growing at a CAGR of 18.0% for 2021 – 31.

The demand for AI in fraud management solutions will continue accelerating, increasing competition prevalent in the market. FMI has forecast the top 5 providers to account for around 55.5% of total market in 2020.

Key Points Covered

  • Market estimates and forecast 2016-2031
  • Key drivers and restraints impacting market growth
  • Segment-wise, Country-wise, and Region-wise Analysis
  • Competition Mapping and Benchmarking
  • Market Share Analysis
  • Key Product Innovations and Regulatory Climate
  • COVID-19 Impact on AI in fraud management market and how to Navigate
  • Recommendation on Key Winning Strategies

2016-2020 AI in Fraud Management Demand Outlook Compared to 2021-2031 Forecast

Sophistication in financial crimes, cyberattacks, and digital frauds are challenging the growth of several businesses worldwide. Growing concerns regarding digital frauds, despite technological advancements facilitating the ease of payment options or data access, calls for the deployment of fraud detection solutions.

The increasing popularity of digital payment apps, cross-border transactions, and e-banking, the number of fraudulent cases involving data breaches, rising payment frauds, and identity thefts are likely to augment the demand for AI based fraud management solutions over the coming years.

The sales for AI based fraud management solutions is estimated to rise at 18.0% CAGR between 2021 and 2031 in comparison with 14.6% CAGR registered during 2016-2020.  

The demand for AI in fraud management from the data science team is increasing significantly due to its application in enhancing security across several business sectors, including retail and financial, and others.

These advanced fraud management solutions use an AI-based detection technology assisted by human sciences and machine learning to address challenges like money laundering, reducing false alerts, and automating fintech investigations.

The global AI in fraud management growth scenario is anticipated to witness an increase in revenue from ~US$ 7.5 Bn in 2021 to ~US$ 39.5 Bn by 2031.

Is Intelligent Automation the Key to Success?

Rapid development in technology is indicating that more business processes can now be automated. Initially this meant that machines and software can relieve workers of boring, routine tasks. Big data, machine learning and artificial intelligence are also making it possible to automate more complex tasks, but many of these projects either fail or fall short of expectations.

Digital transformation means that processes, prices and rules are changing faster than ever before. If they are to survive, businesses have to think and act with agility. To do this, they need to embrace the latest technology and develop the right mindset amongst their staff.

More than ever before, success depends on businesses being faster and more agile than their competitors. For example, online customers expect fast delivery of their goods or an instant quote when seeking to buy insurance. But providing this service usually involves some complex decisions about why a particular product or offer is suitable – or not.

Intelligent automation (IA) integrates every aspect of turning findings into actions. It combines human knowledge from subject matter experts with data-driven artificial intelligence and uses powerful automation software to enable instant action.

What Is the Impact of COVID-19 Crisis on AI in Fraud Management Solutions Demand?

COVID-19 pandemic has impacted every sector and due to social distancing norms, organizations are transforming towards digitalization to ensure overall safety employees and staffs.

Retail banking institutions are under intense pressure to protect customers from fraud during the COVID-19 pandemic and beyond, thus early detection is crucial. This outlines actionable steps to protect legitimate customers while mitigating risk and blocking fraudsters.

The pandemic has put banks, fintechs and other companies that process transactions, at heightened risk. Card fraud, which was already soaring prior to the Covid-19 outbreak, is forcing merchants and issuers to rethink their protective measures as the pandemic deepens.

In addition, AI has ensured that companies are prepared to tackle with the highly sophisticated and nuanced fraud that are now being carried out around the world. It develops trend-based insights, discerns if a given transaction or series of financial activities are unusual or fraudulent, and quickly alerts analysts to anomalies.

The more data that is collected across historical transactions, the better the precision in fraud management. By applying ML, companies can mine historical and live data to locate patterns within customers’ behavior, and can then evaluate every transaction to make accurate fraud predictions.

Thus, the demand for AI in fraud management is estimated to witness a noteworthy growth from around 14.4% to 16.6% Y-o-Y from 2019 to 2021.

Country-wise Insights

How big is the Opportunity for Adoption of AI in Fraud Management in the U.S.?

North America is predicted to remain one of the most attractive markets during the forecast period. According to the study, the U.S. is expected to account for more than 84% of the North America share through 2031.

The U.S. is the largest market for AI in fraud management, due to the strong presence of AI-powered fraud management software and service providers, in the U.S. This is attributed to the increase in demand for advanced fraud management solutions in various industries such as banking, financial services, and insurance (BFSI), consumer goods and retail, telecommunication, healthcare, and others.

Moreover, the U.S. is the most affected nation across the globe by money laundering and terrorist financing crime activities. Hence, the demand for AI-based fraud management solutions would increase across the country, during the forecast period.

Why is Demand for AI in Fraud Management increasing in U.K.?

Demand for AI in fraud management platforms in the U.K. is expected to rise at an impressive 20.7% CAGR over the forecast period. The U.K. economy is increasingly powered by big data, platform business models, advanced analytics, smartphone technology and peer-to-peer networks. At the same time, innovation in the financial sector is dramatically changing the markets.

The demand for AI in fraud management solutions is growing in the U.K. due to the rise in network crimes and frauds and advanced cyber and bot attacks. The U.K. AI in fraud management market is witnessing significant growth opportunities due to the major players focusing on expanding their presence in various verticals, such as BFSI, telecommunication, retail, government/public sector, and manufacturing. Insurance frauds are the major issues faced by European countries.

Rising cases of money laundering and terrorist financing are considered primary threats in the U.K. because of which the European Banking Authority (EBA) has declared the fraud management to be the topmost priority for the EU in 2020.

How will the Sales Prospects for AI in Fraud Management Solutions unfold in India?

The sales in India is estimated to increase at an impressive rate of around 28% CAGR between 2021 and 2031. The country is offering growth opportunities for the sales of AI in fraud management solutions, owing to the government’s policies related to financial and payment transactions and implications for international business.

Governments, banks, and financial institutes in India are facing challenges related to frauds, which are compelling them to adopt advanced technologies such as AI-based and machine learning approaches.

How is China Contributing towards the AI in Fraud Management Sales?

Demand for AI in fraud management solutions in China is estimated to total US$ 521.0 Mn by the end of 2021. In China, the market will gain from the penetration of smartphones and ecommerce boon, which also increased the threat of online and mobile fraud. Hence, the demand for sophisticated fraud preventive measures is on the rise.

China is a huge and growing market and card fraud, to date, has not been a major problem in relation to the value of transactions. Nevertheless, recently, Beijing prosecutors called on banks to review credit card applications more carefully and credit card fraud accounted for 88% of financial crime cases heard in Shanghai courts. The majority of these cases involved credit card fraud, ID theft, and malicious overdrafts.

As mobile and ecommerce platforms continue to grow at a rapid rate, so is the need for more advanced fraud management techniques, which will be critical for online merchants seeking to capitalize on the growing market of China.

Category-wise Insights

Why is the Demand for AI-powered Fraud Prevention Software Continuously Rising?

Based on software, AI-powered fraud prevention software is expected to contribute for nearly 71% of the overall share in 2021. AI based fraud management solutions can provide real-time screening of transactions and other confidential data related activities happening across channels, accounts, users, and processes.

Moreover, the vendors of AI in fraud management solutions are focusing on advancements in AI by the integration of machine learning. AI-powered fraud prevention software offers different features such as enhanced flexibility, complex digital fraud prevention, and AI-powered real-time monitoring systems. The reliability of such features drives the demand for AI in the fraud management solutions.

Why is Identity Theft Protection Application Mostly Preferred?

The identity theft protection application segment is projected to register growth at a CAGR of 19.8% over the coming years. Over the past few years, the world has witnessed several unexpected identity theft cases. These cyber-criminal acts have alarmed law enforcement agencies around the world and compelled them to implement strict rules and regulations,.

Artificial intelligence can be combined with human intelligence to improve the verification process and make it effortless. Furthermore, machine learning can prove to be very competent when it comes to identity fraud prevention. Not only machine learning-based solutions are user-friendly but also capable of identifying the difference between good and bad IDs.

Why is Demand Large Enterprises Increasing?

The large enterprises segment accounted for nearly 60% of the overall market share in 2020, and is expected to continue its dominance during the forecast period. This growth is attributable to the emerging trend of digitalization to adopt advanced and more sophisticated security software and applications.

Investments in deploying preventive measures are among critical business strategies undertaken to ensure organizational data security. Fraudulent activities ranging from money laundering and phishing to distributed denial-of-service are prevalent among large enterprises.

Therefore, it is essential for large enterprises to adopt preventive fraud management solutions and services.

How will Demand from BFSI Sector Support Growth?

The BFSI segment is expected to contribute a revenue share of close to 24% in 2021, and is expected to maintain its dominance in the upcoming years owing to rapid digitization. Automation of operations in the sector have made the banking and financial services industry a popular target among cybercriminals.

Furthermore, the growing popularity of products, such as mutual funds, stockbroking, and insurance, among consumers to digitally access their bank accounts and complete transactions has fuelled the need for the adoption of preventive tools to track frauds and their activities.

Competitive Landscape

The AI in fraud management market is highly concentrated and controlled by dominant players such as IBM Corporation, Capgemini SE, Splunk, Inc., and Cognizant. The introduction of new solution and strategic partnerships are key strategies followed by top players in the AI in fraud management market, to increase their business revenue. However, with product innovations and technological advancements, midsize to smaller firms are growing their market presence by securing new contracts and tapping new markets.

  • In December 2020, Cognizant acquired Inawisdom, a UK-based, privately-held consultancy specializing in artificial intelligence, machine learning, and data analytics to help businesses make better, faster decisions that improve business outcomes. Inawisdom focuses on delivering cloud-native, full-stack solutions leveraging proven consulting methodologies and an analytics and machine learning platform built using Amazon Web Services (AWS).

Scope of Report



Forecast Period


Historical Data Available for


Market Analysis

USD Million for Value

Key Regions Covered

North America, Latin America, Europe, East Asia, South Asia & Pacific, and the Middle East & Africa

Key Countries Covered

US, Canada, Germany, U.K., France, Italy, Spain, Russia, China, Japan, South Korea, India, Malaysia, Indonesia, Singapore, Australia & New Zealand, GCC Countries, Turkey, North Africa and South Africa

Key Segments Covered

Solution, Application, Enterprise Size, Industry, and Region

Key Companies Profiled

  • IBM Corporation
  • Cognizant
  • Temenos AG
  • Capgemini SE
  • Subex Limited
  • JuicyScore
  • Hewlett Packard Enterprise
  • MaxMind, Inc.
  • BAE Systems plc
  • Pelican
  • SAS Institute Inc.
  • Splunk, Inc.
  • DataVisor, Inc.
  • Matellio Inc.

Report Coverage

Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives

Customization & Pricing

Available upon Request

Key Points Covered in AI in Fraud Management Market Survey

  • Which region is expected to showcase significant growth in AI in fraud management solutions demand?

    South Asia & Pacific is projected to register strong growth in the market, exhibiting a CAGR of 23.1% during the forecast period. However, North America currently leads the global market, with market share of nearly 32% in 2021.  

  • Which is the most sought-after application of AI based fraud management software?

    Payment fraud prevention is currently the most sought-after application in the market, accounting for over 35% of revenue generated in 2020. However, identity theft protection is expected to witness robust CAGR of 19.8% throughout the forecast period.

  • Which are some of the leading companies offering AI in fraud management solutions?

    Some of the leading companies in this landscape are IBM Corporation, Cognizant, Temenos AG, Capgemini SE, and Hewlett Packard Enterprise among others. As per Future Market Insight, nearly 65-70% of the market share is currently covered by the top 15 players.

  • Who are the leading end users of AI in fraud management solutions? 

    The BFSI sector is expected to dominate the market over the forecast period, generating revenue of ~US$ 13.4 Bn by 2031. Moreover, the segment is estimated to boost majorly with a CAGR of over 22% over the forecast period.

  • How much is the global AI in fraud management demand worth?

    The AI in fraud management industry was valued at ~US$ 6.5 Bn in 2020, and is estimated to grow at an exceptional pace with a CAGR of 18.0% to reach ~US$ 39.5 Bn in 2031.

  • What will be the demand outlook/ sales forecast for AI in fraud management?

    The sales of AI based fraud management solutions is expected to be valued at ~US$ 7.5 Bn by the end of 2021, and is likely to reach ~US$ 39.5 Bn by 2031.

  • What was the last 5 year market CAGR?

    The market in last 5 years (2016 – 2020) grew by a CAGR of 14.6%.

  • What are the key trends of AI in fraud management industry?

    Key trends in the market includes:

    • Advanced Analytics to Emerge as a New Trend
    • Intelligent Automation is the Key to Success
  • What is driving demand of AI in fraud management?

    Adoption of digitalization and IoT has increased the adoption of fraud management solutions and are the key factors driving the market growth.

  • Which countries are key providers of AI in fraud management solutions?

    Countries involved in providing AI in fraud management solutions include the U.S., France, U.K., and Germany.

  • What is the Global Market Growth Between 2020 and 2021?

    The global market growth between 2020 and 2021 is 16.6%.

    What are the top 5 countries driving demand?

    Top 5 countries driving demand for AI in fraud management include the India, China, U.S., and GCC countries.

  • What is the North America Market Outlook?

    North America is predicted to remain one of the most attractive markets during the forecast period, according to Future Market Insights. According to the study, the U.S. is expected to account for more than 84% of the North America market through 2031.

  • How the Europe AI in Fraud Management Industry Growth will unfold?

    The AI in fraud management industry in Europe is estimated to expand at a CAGR of 16.2% over the forecast period.

  • What is the key market statistics in South Korea and Japan?

    The AI in fraud management demand in Japan and South Korea was valued at US$ 370.3 Mn and US$ 186.7 Mn in 2020, respectively and is projected to register CAGR of 20.0% and 17.4% respectively between 2021 and 2031.

AI in Fraud Management Outlook by Category

By Solution:

  • AI-powered Fraud Prevention Software
    • Cloud-based
    • On-Premises
  • Services
    • Professional Services
      • Risk Assessment Services
      • Fraud & Risk Consulting
      • Integration & Implementation
      • Support & Maintenance
    • Managed Services

By Application:

  • Identity Theft Protection
  • Payment Fraud Prevention
  • Anti-Money Laundering
  • Others

By Enterprise Size:

  • Small and Medium Enterprises (SMEs)
  • Large Enterprises

By Industry:

  • BFSI
  • IT & Telecom
  • Healthcare
  • Government
  • Education
  • Retail & CPG
  • Media & Entertainment
  • Others

By Region:

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Pacific
  • Middle East and Africa (MEA)

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AI in Fraud Management Market