Identity Theft and Fraud Protection Market Size, Share, Growth, and Industry Analysis, By Type (Credit Monitoring, ID Monitoring and Other Services), By Application (Consumer and Enterprise), Regional Insights, and Forecast To 2032

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IDENTITY THEFT AND FRAUD PROTECTION MARKET REPORT OVERVIEW

Global Identity Theft and Fraud Protection Market size was USD 6.91 Billion in 2023 and market is projected to touch 13 Billion by 2032, exhibiting a CAGR of 7.2% during the forecast period.

Identity theft and fraud protection can be defined as the concepts, actions, and processes related to ensuring the protection of personal details from being used without permission. Identity Theft is an act whereby an individual utilize person’s details like name, social security number, credit card number or other personal details for the purpose of defrauding. The negatives of identity theft are that it can lead to loss of money, loss of credit score, loss of reputation and embarrassing situations which one would not wish to face.

COVID-19 Impact: Market Growth increased by the Pandemic due to Rise in Cyber Attacks

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

Since the COVID-19 pandemic began, and as individuals have been compelled to work remotely and perform business operations through the internet, hackers have seen new avenues to target potential victims. Since then, people have been falling victim to latest tricks such as phishing, malware, and other related threats with the aim of getting their personal details.

LATEST TRENDS

"Integration of AI and Machine Learning to Propel Market Growth"

But in the present era, Artificial Intelligence (AI) and Machine Learning (ML) are widely used for fraud detection and prevention. AI algorithms can carry out analyses on large datasets and compare them in real time and determine possible irregularities that could not otherwise be ascertained using conventional techniques. Machine learning is a branch of AI that allows the system not only to learn about new events and occurrences but to adapt to them in the process of identifying new and emerging trends in fraud. These make it easier in delineating potential risks and eliminating a large number of probable false alarms thus enabling the institutions to deal effectively with possible threats. The application of artificial intelligence, specifically in conjunction with machine learning algorithms, is a substantial and innovative development in the identity theft and fraud protection industry. The former helps to improve the efficiency of IT for identifying and mitigating fraud by processing large amounts of data in real-time. It is still impossible for explicit techniques to execute duties that necessitate analyzing subtle patterns and detecting cheater profiles or activities prevalent in applying large volumes of data. For example, they can track products and services, customers’ behavior, and Internet usage to identify deviations indicating fraudulent activities indicating identity theft.

IDENTITY THEFT AND FRAUD PROTECTION MARKET SEGMENTATION

By Type

Based on type the market can be categorized into Credit Monitoring, ID Monitoring, and Other Services.

• Credit Monitoring- Credit monitoring as defined entails the monitoring of credit reports and score from the three credit rating agencies which are Equifax, Experian and TransUnion. By using this service, it becomes easier to identify any abnormality or incidence that a victim of identity theft may be experiencing.
• ID Monitoring- Although ID Monitoring (Identity Monitoring) can look at credit-related data only, this does not mean that it is limited to this sphere. The interaction of this service is to assist in identifying when individual personal identifiers are being misused.

By Application

Based on application the market can be categorized into Consumer and Enterprise.

• Consumer- Provides for the periodic monitoring of credit reports as well as credit scores to identify various forms of frauds and scams including opening of credit accounts in the client’s name, or abrupt changes in the credit limit. Screens for the abuse of personally identifiable information that is Social Security, driver’s licenses, and other medical IDs and offers a search on the Deep and Dark Web to detect compromised credentials.
• Enterprise- Scans corporate and clients’ Personally Identifiable Information on many sites to identify theft and fraud. Helps to protect confidential information from being leaking or copied by the competitor or any unauthorized personnel.

DRIVING FACTORS

"Increasing Incidence of Cybercrime to Drive Market Advancement"

One of the key driving factors in the Identity Theft and Fraud Protection market growth is the Increasing Incidence of Cybercrime. The trend toward cybercrime is instrumental in driving the identity theft and fraud detection market as a whole because it increases the threat level for both parties in question. The increase in recovery cases implies that the incidences of cybercrimes are on the rise and their methods are more complex than in the past. This is in the form of fake emails, fake software, fake websites, hacking of email accounts, fake lotteries, fake jobs, and other scams that are aimed at conning users into providing their details, bank details, and other personal information. Such incidents of hacking and breech continue to reel off, which reveals the gaps and weaknesses that exist in the current security mechanism, that calls for further development of Identity theft and fraud protection systems. Therefore, both the enterprise and the client are paying a greater amount of money for these services to protect individual and / or financial data from being exposed or stolen and to prevent a loss of customer confidence. The type of threat that pervades computer systems is ever-evolving, and this makes it imperative for vendors to incorporate AI and Machine learning technologies to detect them. Such a scenario defines a constant and progressive market need for identity theft and fraud prevention and detection solutions.

"Remote Work and Digital Transformation to Expand the Market"

The change in work environment and business operation has also greatly contributed to the growth of the identity theft and fraud protection market mainly because of the new emerging entry points that perpetrator can employ to perpetrate their crimes. The COVID-19 pandemic blurs the distinction between home and business, where people have started working from home, and, therefore, relying on less secure personal devices and home networks as opposed to well-protected business ones. This shift has led to new vulnerabilities in organizations by increasing the risks of unauthorized access, theft of data through unsecured wireless networks, weak IT security protocols in remote workers, and outdated software. Furthermore, with the advancements in the growth of industries and enterprises, there has been a shift towards cloud services, remote collaboration platforms, and digital payments, which increases the number of possible avenues for an attack. With organizations and individuals experiencing this emerging scenario, it has become vital for a full-spectrum Identity theft and fraud protection service. Various organizations require non-disclosure of some pieces of information as well as unscrupulous entities requiring protection of their financial undertakings in cyberspace while the employees require protection of their newly adopted working environment in the cyberspace.

RESTRAINING FACTOR

"High Costs Poses Potential Impediments to Market Growth "

Another major challenge affecting the identity theft and fraud protection market is market saturation that results from high costs; these high costs make it difficult for people to acquire these important services and products. The sophisticated preventative measures include expenses on the initial installations, sophisticated software packages, or highly skilled personnel to manage the solutions. In connection with this, the costs of subscription fees for these comprehensive protection plans are often very steep for a number of reasons, hence proving extremely difficult for the average financially strapped individual to afford. SMBs are also challenged in this regard as they cannot afford to spend hugely in high-end security measures as they would wish similar to big organizations. This financial factor reduces the range of prospective clients who be capable of obtaining enhanced coverage necessary to guard themselves against cyber perils. Also, the Inception, Implementation, and Ongoing maintenance costs particularly the frequent software updates, monitoring, and frequent technical support also make it expensive to implement hence discouraging its adoption.

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IDENTITY THEFT AND FRAUD PROTECTION MARKET REGIONAL INSIGHTS

"North America to Dominate the Market due to Advanced Technological Infrastructure"

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

North America has emerged as the most dominant region in the Identity Theft and Fraud Protection market share due to a convergence of factors that propel its leadership in this dynamic industry. North America especially the United States has a robust technology framework handy in assimilating into efficient novel identity theft and fraud safeguard technologies. The market is led by renowned technology companies and considerable founding and emerging startups in cybersecurity markets.

KEY INDUSTRY PLAYERS

"Key Players Transforming the Identity Theft and Fraud Protection Landscape through Innovation and Global Strategy"

Major industry players are pivotal in shaping the Identity Theft and Fraud Protection market, driving change through a dual strategy of continuous innovation and a well-thought-out global presence. By consistently introducing inventive solutions and staying at the forefront of technological progress, these key players redefine the industry's standards. Simultaneously, their expansive global reach enables effective market penetration, addressing diverse needs across borders. The seamless blend of groundbreaking innovation and a strategic international footprint positions these players as not only market leaders but also as architects of transformative shifts within the dynamic domain of Identity Theft and Fraud Protection.

List of Market Players Profiled

• Experian (Ireland)
• cxLoyalty (U.S.)
• TransUnion (U.S.)
• Equifax (U.S.)
• NortonLifeLock (U.S.)

INDUSTRIAL DEVELOPMENT

Mar 2024: Through this strategy, FIS collaborated with Startyfy, which has benefited from the FIS Fintech Accelerator, to improve the SecurLOCK card Fraud management solution. It is expected that with the help of this Collaboration the possibility of the definition and non-acceptance of the fraudulent card transactions will enhance greatly.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.