MarketsandMarkets™ has published new research projecting substantial growth for the global Fraud Detection and Prevention (FDP) market within the banking, financial services and insurance (BFSI) sector.
The FDP in BFSI market is forecast to expand from $7.78bn in 2026 to $15.06bn by 2031, representing a compound annual growth rate (CAGR) of 14.1% over the period, according to the research. The market was valued at $6.92bn in 2025, with the new report tracking data across 2020 to 2031 and covering the period from 2026 to 2031 for its forecast.
The research attributes this growth to escalating financial fraud losses, the continued rise of digital transactions, and tightening regulatory scrutiny around fraud prevention across the banking and insurance industries.
Several trends emerge from the study’s segmentation. Solutions are expected to command 80.2% of the market by offering in 2026, while authentication is set to be the fastest-growing solution type, expanding at a CAGR of 14.7%.
Among organisation sizes, small and medium-sized enterprises (SMEs) are projected to post the highest CAGR at 15.7% during the forecast window. By fraud type, identity fraud is anticipated to lead in growth rate, and North America is expected to hold the largest regional market share in 2026.
Fraud analytics is highlighted as the largest solution segment by market size, driven by demand for real-time analysis of high transaction volumes across banking, payments, lending and insurance.
The report notes that institutions are applying artificial intelligence, machine learning and behavioural analytics to flag unusual transaction patterns, cut false positives and catch complex fraud before losses occur, citing SAS Fraud Management as an example of a platform combining predictive analytics with machine learning for real-time, multi-channel fraud detection.
Identity fraud is set to be the fastest-growing fraud type, a trend the report links to the growth of digital banking, remote onboarding and AI-enabled impersonation methods such as synthetic identities and deepfakes. Citing TransUnion data, the report notes suspected digital account takeover fraud rose by 37% between 2024 and 2025.
Within use cases, insurance is expected to see the fastest growth, as fraudulent claims, identity theft and AI-driven document manipulation increase. The report cites a National Insurance Crime Bureau (NICB) projection that insurance fraud tied to identity theft will rise by 49% in 2025.
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