Indian Businesses To Invest $7.6 Bn For Fraud Detection, Prevention By 2027: Report
A new report on Tuesday revealed Indian businesses will invest USD 7.6 billion in fraud detection and prevention (FDP) solutions by 2027. The total addressable FDP market was over USD 1.5 billion in 2022 and will grow at a CAGR of 37 per cent.
The market will grow as India’s internet user base increases to about 1,144 billion internet users by 2027, growing at a CAGR of 5 per cent, noted the report. With this, volume of digital transactions is expected to reach to more than 1.9 trillion by 2027, growing at a CAGR of about 74 per cent.
Noticeably, BFSI constitutes over 7 per cent of the total FDP addressable market in 2022 followed by e-commerce (about 24 per cent).
While enterprises in Banking and financial services, Insurance, and Gaming sectors typically develop in-house FDP solutions, frictionless CX with robust security, unavailability of quality data are the key challenges faced by FDP players.
But factors such as accelerating digitalisation, an increasing number of fintech startups are creating headroom for the growth of FDP players in India, noted the Bureau report.
Interestingly, the report revealed that of the total reported digital payment frauds, about 55 per cent are UPI-related. Though the attack volume for this segment is massive, the financial impact is actually relatively low. This was largely because half of the UPI-related fraud attacks tend to be low-ticket size (less than Rs 10,000).
The study also found that global FDP market is expected to reach USD 86 billion by 2027. In the next two years, 60 per cent of organisations are planning to increase their FDP budget to mitigate the rising threat of digital fraud.
