As the Indian economy continues its growth, the rise in digital fraud is becoming a concerning challenge for businesses. To tackle this issue head-on, smart businesses on India are gearing up to invest a substantial US$ 7.6 billion in fraud detection and prevention solutions over the next four years.
In recent times, fraudsters have launched sophisticated attacks on sign-up and log-in touchpoints, causing significant financial damage and reputational challenges for businesses. Those who heavily rely on their online experience must prioritize deploying robust fraud detection and prevention solutions to protect these touchpoints and avert fraud at the point of transaction.
Introducing "The Anatomy of Fraud 2023"
At Bureau, we understand the gravity of the digital fraud problem, and that's why we recently conducted an in-depth study titled "The Anatomy of Fraud 2023." This groundbreaking study delves into comprehensive details about the size of fraud in India and Southeast Asia, providing valuable insights for businesses, governments, and NGOs worldwide.
According to our study, the global fraud detection and prevention market is projected to witness a staggering Compound Annual Growth Rate (CAGR) of 22%, soaring to approximately US$ 86 billion by 2027, from the 2022 figure of around US$ 31 billion. And guess what? The fastest-growing region driving this market surge is the Asia-Pacific (APAC), spearheaded by India.
Digital Fraud - A Mounting Challenge
Fake account registrations and unauthorized logins pose significant challenges for digital businesses, causing substantial financial losses. Our study reveals that 9% of fraud instances occur during the new account creation phase, while the most considerable chunk of transaction fraud happens due to fake logins, accounting for a staggering 130 million fraudulent instances of account logins between July and December 2021. These figures underscore the importance of bolstering precautions at the beginning of the digital consumer lifecycle to proactively detect and prevent identity-driven threats.
Factors Driving the Surge in Fraud
Fraudulent activities have skyrocketed in recent years, causing massive losses to businesses. It is estimated that banking fraud in India causes losses worth USD 12M every day. Some of the prime reasons driving this growth of fraud are as described below:
- Technological Advancements: Rapid advancements in technology have enabled fraud attacks to occur more frequently, with greater speed and effectiveness. E-commerce, digital payments, and computing power have further increased the risk of fraud.
- Automated Attacks: Fraudsters now employ automated methods and tools, such as script creation, credential stuffing, and brute force attacks, enabling targeted and sophisticated attacks at scale.
- Frankenstein Fraud: Leveraging artificial intelligence, fraudsters create fake synthetic identities that evade facial recognition technology, making it difficult for businesses to fight fraud.
- Organized Activity: Seasoned fraudsters often operate in organized fraud rings executing criminal activities with precision, using fake or forged identity documents to create verified accounts for their malicious schemes.
Proactive Strategies with Fraud Detection and Prevention Solutions
Traditional fraud defense solutions and reliance on internal data may not be enough to combat evolving threats. Businesses need innovative platforms that integrate risk management, compliance, and fraud detection and prevention solutions to safeguard operations and deliver seamless digital consumer experiences.
By employing fraud detection and prevention solutions at the top of the funnel, during login and sign-up processes, businesses can significantly reduce downstream operational costs, false positives, and chargebacks. These integrated identity platforms use advanced analytics to accurately predict intent and reduce manual reviews. They also integrate with databases and bureaus to verify digital documents, gestures, images, and videos, and detect anomalies in real-time.
APAC: The Powerhouse of Fraud Detection and Prevention Growth
The APAC region, led by India, is experiencing remarkable growth in the fraud detection and prevention market. India's fraud detection and prevention market is projected to grow at an impressive 37% CAGR, reaching US$ 7.6 billion by 2027, far exceeding its IT spend CAGR of 9% during the same period. Various economic and regulatory trends in India, including the growing internet base, digital payments, e-commerce explosion, and new regulations and initiatives, have fueled the need for robust fraud detection and prevention solutions.
Bureau: Your Trusted Fraud Detection and Prevention Partner
At Bureau, we firmly believe that digital identities form the bedrock of the digital economy. By understanding and discerning trustworthy digital identities, businesses can grow profitably while combatting fraud. Our Identity Decisioning Platform offers a complete range of identity verification, fraud detection/ prevention, and compliance management solutions to safeguard your sign-up, log-in touchpoints, and transactions from growing threats.
We partner with the top banks, fintech, insurers, gig economy and e-commerce companies, and real-money gaming businesses. Our platform easily integrates with any tech stack, requires minimal tech bandwidth, and offers no-code workflows for seamless automation of onboarding, transaction, and fraud risk decisions.
Our AI-powered rule engine employs complex business logic and generates granular insights, enhancing fraud detection and enabling real-time responses.
Fraud is a real challenge, but we're here to face it head-on with you. To learn more about how Bureau can help you fortify your defenses against fraud and deliver a seamless customer experience, contact us now.
Remember, the fight against fraud never stops, but with Bureau, you'll always be miles ahead!