E-Commerce Fraud Prevention

Goals

To provide a competitive analysis of the leading companies in the e-commerce fraud prevention market, particularly Forter, Riskified, Signifyed, and Sift. For the e-commerce fraud prevention market, an overview of the market will be provided, For the leading companies, an overview of each company, along with its competitive advantage, market positioning, revenue (from annual financial reporting if a publicly traded company, and from expert estimates for privately held companies where available), products and services, pricing (where available), and target markets will be provided.

Early Findings

E-Commerce Fraud Prevention Market — Global

  • Recent estimates of the size of the e-commerce fraud prevention market cannot be provided as this information is contained in proprietary research. The information is available in reports from MarketWatch and Frost & Sullivan for a fee.
  • An estimate of the overall fraud detection and prevention market, in which e-commerce fraud prevention was included, was published by Markets and Markets. The report valued the post-COVID-19 global fraud detection and prevention market at $20.9 billion in 2020, which is expected to increase to $38.2 billion by 2025. The Compound Annual Growth Rate (CAGR) is estimated at 12.8%.

E-Commerce Fraud Prevention Market — US

  • The market for e-commerce fraud prevention is expected to grow in the US, as e-commerce sales are estimated to be valued at $700 billion by 2023.
  • A major area of focus for companies in this market is the need to incorporate behavioral, analytics based solutions that deploy artificial intelligence (AI) and machine learning (ML) to assist with fraud prevention.
  • Firms are also being advised to improve on their ability to collect, create and augment data from a wide range of sources, including differing verticals, industries, companies and product types to identify the patterns that lead to fraud.
  • Retailers paid up to $3.13 per dollar of fraud loss in 2019. This is up 6.5% over the previous year. In 2016 the cost per dollar of fraud loss was $2.40.

E-Commerce Fraud Prevention — Leading Companies

  • Leading companies in the US e-Commerce Fraud Prevention Market are Accertify, ACI Worldwide, Bolt Financial, Inc., CyberSource, Forter, Kount, Riskified, Sift, and Signifyd.

Summary:

  • The initial hour of research focused on gathering data on the US e-commerce fraud prevention market. During the search it was confirmed that there is market information regarding an estimate of the size of the market for e-commerce fraud prevention. However, this information is contained in proprietary research and not publicly accessible.
  • A report was found for 2020 for fraud detection and prevention in which e-commerce fraud detection and prevention was a sub-vertical. This was used to provide an estimate of the global size of the market. Specific to the US market, an estimate of the market size was not publicly available. Information regarding where companies in the market should place their focus, and the cost for each dollar of fraud loss was found and provided in the report above.
  • The research was conducted with a primary focus on the US market. This was supplemented with information regarding the global market when information specific to the US market was unavailable. Please advise whether the focus of continued research should be from a US or global perspective.
  • We propose continued research to complete the competitive analysis for Forter, Riskified, Signifyed, and Sift. We also propose to add to the competitive analysis, information for Accertify, ACI Worldwide, Bolt Financial, Inc., CyberSource, and Kount. Additionally, we propose to provide 3-5 trends in e-commerce fraud detection and prevention. The research path to be undertaken for these items is provided in the section below.
  • Kindly advise if this meets with your approval, or whether alternative research paths not mentioned here are preferred.

Proposed next steps:

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