The Global Enterprise Fraud Management market is growing by leaps and bounds, with an increasing number of businesses preferring this flexible, scalable, and financially viable model over the traditional fraud management solution. Enterprise fraud management solution offers the flexibility of scalability of providing the widest possible fraud solutions coverage across the organization level. EFM solutions improve the customer journey experience by avoiding additional friction and providing a consistent user experience. The software detects the anomalies by analyzing the user activity during a session at the individual level. EFM solutions should be flexible, scalable, versatile, and quickly detect potential threats and anomalies.

Vendors Covered:

ACI Worldwide, BAE Systems, BPC, Clari5, DataVisor, Eastnets, Featurespace,
Feedzai, FICO, Fiserv, IBM, LexisNexis Risk Solutions, NICE Actimize, Quantexa,
and SAS

What Propels this Growth?

The rapid increase in competition and disruptive business model in the digital era leaves no room for enterprises to spoil user journeys with any type of fraud. This will be hampering the customer lifetime value (CLTV) of the company. Fraud impacts the customer experience, loyalty, and brand image, affecting the bottom line of the company. In retail sectors, companies are moving to omni-channel, eventually creating a new space for fraudsters. Criminals are continuously looking at finding innovative ways to outsmart the existing fraud detection systems to launch high-volume and complex fraud attacks. The frauds like money mules, phishing scams, ATOs, APP fraud, and employment scams are the current trending frauds in the market. Also, the trend of Generative AI is increasing new frauds like deepfakes & voice spoofing, synthetic identity fraud, and forgery fraud. In addition, the increasingly stringent regulatory environments have brought increased scrutiny on cybersecurity measures as well as fraud management models.

Therefore, organizations across the globe are re-evaluating their existing fraud detection and prevention strategies and looking at deploying advanced fraud detection technologies to actively detect and prevent fraud, minimize losses, improve fraud investigation, comply with global norms, and enhance the overall customer experience. Hence, organizations are continuously embracing sophisticated fraud solutions such as enterprise fraud management (EFM) for enhanced security and to operate smoothly in these challenging environments.

Understanding Growth Industries

With the advent of new concepts like Neo-banks, Peer-to-Peer(P2P) payments, and BNPL, it is explicit that financial crime and fraud will gain more momentum. Organizations began implementing rule-based systems for fraud detection. These systems used predefined rules and thresholds to flag potentially fraudulent activities. While rule-based systems helped automate parts of the process, they had limitations in detecting complex and evolving fraud patterns. Fraudsters could easily adapt and evade detection by circumventing the predefined rules. The traditional rule-based approach does not efficiently manage the evolving fraud patterns. EFM solution is a holistic approach to helping an organization minimize losses, combat risks, ensure regulatory compliance, and optimize operational efficiencies across the organization and entity level.

Quadrant Knowledge Solutions, through its proprietary SPARK matrix, evaluates leading EFM players across geography, both strategically & technically. The segment is witnessing its biggest push with the advent of AI-ML.

The Future of the Enterprise Fraud Management Market

In the future, the global Enterprise Fraud Management market is expected to be primarily driven by the increasing adoption of cloud-based software and AI-ML based fraud detection. It is anticipated that the market will grow during this time due to more vendors embracing AI-ML.

EFM vendors are focusing on the adoption of supervised and unsupervised ML algorithms to detect a wide range of fraud patterns. Also, the leading vendors are focusing on the adoption of GenAI for fraud detection, making the fraud detection process more advanced. EFM vendors are also focusing on gathering more data points using shared intelligence to improve the overall fraud detection rate.

According to Quadrant Knowledge Services, while the market as a whole is expected to grow, specific product segments, verticals, and geographies are poised to register particularly high growth. Key predictions from Quadrant’s Market Intelligence offering “Marine”.

Related Reports:

Global Market Share: Enterprise Fraud Management (EFM), 2022

Report: https://quadrant-solutions.com/market-research/global-market-share-enterprise-fraud-management-efm-2022-2764

Global Market Forecast: Enterprise Fraud Management (EFM), 2022-2027

Report: https://quadrant-solutions.com/market-research/global-market-forecast-enterprise-fraud-management-2022-2027-2698

SPARK Matrix™: Enterprise Fraud Management (EFM), 2023
Report: https://quadrant-solutions.com/market-research/spark-matrix-enterprise-fraud-management-q3-2023-2974

Analyst Perspective

Analysts at Quadrant Knowledge Solutions believe the Enterprise Fraud Management market is shaping the future of how a service provider connects with its customers.

Enterprises are adopting advanced fraud detection technologies, like Enterprise Fraud Management (EFM), to combat evolving fraud schemes and ensure regulatory compliance. With the rise of industries like Neo-banking and P2P payments, the need for robust fraud prevention has become crucial. EFM solutions, incorporating AI and ML, are essential for minimizing losses and optimizing operational efficiency in this challenging fraud landscape.

Author : Shivam Natani Analyst At Quadrant Knowledge Solutions