Global Credit Scoring and Fraud Market Size, Share, Statistics Analysis Report By Type of Credit Scoring (Generic Credit Scoring, Custom Credit Scoring), By Fraud Type (Credit Card Fraud, Identity Theft, Loan Application Fraud, Insurance Fraud, Cyber Fraud), By Deployment (Cloud-Based, On-Premises), By Enterprise Size (Small & Medium Enterprise Size (SME's), Large Enterprises), By Industry (Banking, Financial Services and Insurance (BFSI), Government and Defense, Healthcare, IT and Telecom, Automotive, Retail and E-commerce, Others (Oil & Gas, Education, etc.)), Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2025-2034
- Published date: February 2025
- Report ID: 138687
- Number of Pages: 350
- Format:
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Quick Navigation
- Report Overview
- Key Takeaways
- U.S. Credit Scoring and Fraud Market
- Type of Credit Scoring Analysis
- Fraud Type Analysis
- Deployment Analysis
- Enterprise Size Analysis
- Industry Analysis
- Key Market Segments
- Driver
- Restraint
- Opportunity
- Challenge
- Emerging Trends
- Business Benefits
- Key Player Analysis
- Top Opportunities Awaiting for Players
- Recent Developments
- Report Scope
Report Overview
The Global Credit Scoring and Fraud Market size is expected to be worth around USD 45.2 Billion By 2034, from USD 8.5 Billion in 2024, growing at a CAGR of 18.20% during the forecast period from 2025 to 2034. North America is projected to dominate, holding over 44.7% of the global market share.The U.S. credit scoring and fraud detection market is expected to reach USD 3.23 billion by 2024, growing at a CAGR of 19.3%.
Credit scoring and fraud detection are critical components of the financial services industry. Credit scoring involves the use of statistical models to predict the likelihood that a borrower will repay a loan or credit obligation. These models analyze a borrower’s credit history, loan application data, and other financial details to assign a credit score, which helps lenders assess risk and make lending decisions.
Fraud detection, on the other hand, involves identifying and preventing fraudulent activities in financial transactions. It uses various techniques, including anomaly detection, pattern recognition, and machine learning algorithms, to flag potentially fraudulent actions before they result in significant financial loss.
The growth of the credit scoring and fraud detection market is driven by several factors, including the rise in online transactions and cybercrime, which increase the need for effective fraud detection. Additionally, the ongoing digital transformation in banking and finance is pushing the adoption of advanced analytics and machine learning for improved credit scoring and fraud prevention.
Regulatory pressures for stricter credit assessments and anti-fraud measures are driving financial institutions to invest in advanced credit and fraud management systems. Additionally, the use of alternative data in credit scoring expands the market by helping lenders assess borrowers without traditional credit histories, particularly benefiting underserved segments.
Credit scoring and fraud detection technologies are gaining popularity for their role in securing financial transactions and minimizing financial losses. Beyond financial institutions, e-commerce platforms, fintech companies, and even healthcare providers are adopting these tools to protect their operations from fraud and financial discrepancies.
According to Self.inc, identity theft remained a significant concern in the U.S. in 2023, with 1,036,903 reported cases. Among these, 40% (416,582 cases) were related to credit card fraud, making it one of the most common types of identity theft. Fraud involving card-not-present (CNP) transactions, particularly in e-commerce, continues to rise, with global losses projected to reach $10.16 billion by 2024.
The U.S. remains the most affected country, accounting for 35% of global credit card fraud losses, which are expected to climb to $12.5 billion in 2024. Additionally, credit card fraud on newly opened accounts represented 45.7% of the top five types of identity theft last year.
Phishing remains a major driver of fraud, with social media emerging as the most targeted industry. In Q3 2023, social media platforms accounted for 43% of all recorded phishing attacks, underscoring the growing risks of online scams.
The evolving nature of fraud, driven by technological advancements, creates ongoing opportunities to improve credit scoring and fraud detection solutions. Innovations like machine learning, AI, and big data analytics enhance the accuracy and speed of these systems. Additionally, blockchain integration offers greater security and transparency in transactions, further fueling market growth.
The credit scoring and fraud detection market is poised for significant growth, driven by emerging markets with expanding digital infrastructure and increased internet access. Stricter data protection and privacy regulations also push companies to invest in advanced security solutions, further fueling market expansion. This growth highlights the critical role these technologies play in creating a safer global financial environment.
Key Takeaways
- The Global Credit Scoring and Fraud Market is expected to reach a value of approximately USD 45.2 Billion by 2034, up from USD 8.5 Billion in 2024, growing at a CAGR of 18.20% from 2025 to 2034.
- The U.S. credit scoring and fraud detection market is projected to reach USD 3.23 billion by 2024, with a strong CAGR of 19.3%.
- North America held a dominant position in the global credit scoring and fraud detection market in 2024, capturing more than 44.7% of the market share.
- The Generic Credit Scoring segment held a dominant market position in 2024, capturing more than 58.2% of the global credit scoring market.
- In 2024, the Credit Card Fraud segment led the credit scoring and fraud detection market, capturing more than 32.5% of the market share.
- The On-Premises segment captured more than 66.9% of the share within the credit scoring and fraud detection sector in 2024.
- In 2024, Large Enterprises held a dominant market position in the credit scoring and fraud detection market, accounting for more than 75.2% of the market share.
- The Banking, Financial Services, and Insurance (BFSI) sector held a significant share in 2024, capturing more than 26.7% of the credit scoring and fraud detection market.
U.S. Credit Scoring and Fraud Market
The market for credit scoring and fraud detection in the U.S. is anticipated to achieve a substantial growth, reaching a valuation of USD 3.23 billion by the year 2024. This sector is expected to experience a robust compound annual growth rate (CAGR) of 19.3%. This growth can be attributed to several key factors, including advancements in technology and increasing awareness about the importance of robust fraud detection and prevention systems.
As financial transactions continue to migrate to digital platforms, the need for effective credit scoring and fraud detection solutions has become more critical. This necessity drives the demand for innovative technologies that can provide accurate risk assessments and protect against fraudulent activities. Financial institutions and other businesses are investing in these solutions to safeguard their operations and enhance customer trust, further propelling market growth.
In 2024, North America held a dominant position in the global credit scoring and fraud detection market, capturing more than 44.7% of the market share. This region’s market value stood at approximately USD 3.7 billion, largely driven by the presence of a highly developed financial sector and significant investments in cybersecurity infrastructure.
The robust market position of North America is further bolstered by stringent regulatory standards and a strong emphasis on consumer data protection. U.S. regulations such as the Fair Credit Reporting Act (FCRA) and initiatives aimed at enhancing cybersecurity across financial transactions have propelled the adoption of advanced fraud detection technologies.
Technological advancements in AI and machine learning are key drivers of North America’s leadership in credit scoring and fraud detection. These innovations enable more accurate credit evaluations and real-time fraud detection, enhancing both speed and reliability. North American companies are leading the way in integrating these technologies, setting high standards for effectiveness and regulatory compliance.
Type of Credit Scoring Analysis
In 2024, the Generic Credit Scoring segment held a dominant market position, capturing more than a 58.2% share of the global credit scoring market. Generic credit scoring models, which use standardized procedures for assessing credit risk, are highly favored by financial institutions for their efficiency and scalability.
One key reason for the dominance of the Generic Credit Scoring segment is its cost-effectiveness. Banks and other lending institutions often prefer these models because they reduce the need for customized scorecard development, which can be resource-intensive and costly.
Furthermore, the widespread regulatory acceptance of generic credit scoring models reinforces their leadership in the market. These models are often pre-approved or easier to get approved by regulatory bodies, as they adhere to standard financial industry practices for credit risk assessment.
Fraud Type Analysis
In 2024, the Credit Card Fraud segment held a dominant position in the credit scoring and fraud detection market, capturing more than a 32.5% share. This segment leads primarily because of the sheer volume of credit card transactions daily, coupled with the increasing sophistication of fraudulent schemes.
As e-commerce and digital payments continue to surge, credit card fraud remains a significant concern for consumers and businesses alike. The continuous innovation in fraud tactics demands equally advanced detection and prevention solutions, driving substantial investment into this segment of the market.
Identity theft is a key focus in the fraud detection market, driven by the increasing accessibility of personal information online. The rise in identity theft has led to financial and reputational harm, boosting demand for technologies that can quickly verify identities and detect fraud. This makes it a critical growth area in the fraud detection landscape.
Loan application fraud has risen with the growth of online loan processing, where weaker verification processes can be exploited. Fraudsters manipulate personal data or fabricate financial details to obtain loans illegitimately. As a result, the market for detecting such fraud is expanding as lenders seek stronger verification methods to reduce risks tied to unsecured lending.
Deployment Analysis
In 2024, the On-Premises segment held a dominant market position within the credit scoring and fraud detection sector, capturing more than a 66.9% share. This preference for on-premises solutions is primarily attributed to their enhanced security features and the control they offer to organizations, especially in sectors where data sensitivity is paramount.
On-premises solutions are popular due to their high customizability, allowing organizations to tailor systems to their specific needs and integrate with existing IT infrastructures. This flexibility is essential for complex operations and meeting strict regulatory requirements, especially in finance and healthcare, where credit scoring and fraud detection are vital.
Moreover, the initial financial investment in on-premises infrastructure, despite being higher, is often justified by larger enterprises for the long-term benefits of security and control. These entities appreciate the predictable cost structure associated with on-premises deployments, where ongoing expenses can be more easily managed once the initial outlay is absorbed.
Enterprise Size Analysis
In 2024, the Large Enterprises segment held a dominant market position in the credit scoring and fraud detection market, capturing more than a 75.2% share. This segment’s dominance is largely due to the substantial financial resources large enterprises possess, which enable them to invest in advanced credit scoring and fraud detection technologies.
The need for compliance with stringent regulatory standards also drives large enterprises to lead in this market. Regulatory frameworks across various regions often require rigorous monitoring and reporting processes, which are more feasible for large enterprises due to their greater capacity for integration of complex and compliant technologies.
Moreover, the scope and scale of operations of large enterprises require robust systems to manage the higher volume of transactions and more complex credit portfolios. Larger organizations typically deal with a broader international customer base, necessitating more comprehensive credit scoring and fraud prevention systems.
The competitive edge in the market is a significant motivator for large enterprises to invest in state-of-the-art credit scoring and fraud detection systems. By leveraging advanced analytics, large enterprises can gain deeper insights into customer behavior, improve decision-making processes, and enhance customer satisfaction by offering more personalized and efficient services.
Industry Analysis
In 2024, the Banking, Financial Services, and Insurance (BFSI) segment held a dominant market position in the credit scoring and fraud detection industry, capturing more than a 26.7% share. This segment leads due to the critical need to safeguard financial transactions and customer data, which are plentiful in BFSI operations.
The Government and Defense sector also significantly invests in fraud detection to protect against threats that compromise national security and public welfare. These entities utilize advanced fraud detection technologies to monitor and secure sensitive information and transactions, thus maintaining the integrity of public services and defense operations.
In the Healthcare industry, the need for fraud detection is driven by the increasing instances of insurance claims fraud and prescription fraud. With vast amounts of sensitive patient data and financial transactions, healthcare providers are turning to sophisticated credit scoring and fraud detection tools to prevent losses and ensure compliance with regulatory standards.
The IT and Telecom sector is another prominent area where fraud detection technologies are crucial, especially with the growing incidence of cyber fraud. Companies in this sector are focusing on protecting their assets and customer data from sophisticated cyber-attacks, driving the demand for advanced security solutions.
Key Market Segments
By Type of Credit Scoring
- Generic Credit Scoring
- Custom Credit Scoring
By Fraud Type
- Credit Card Fraud
- Identity Theft
- Loan Application Fraud
- Insurance Fraud
- Cyber Fraud
By Deployment
- Cloud-Based
- On-Premises
By Enterprise Size
- Small & Medium Enterprise Size (SME’s)
- Large Enterprises
By Industry
- Banking, Financial Services and Insurance (BFSI)
- Government and Defense
- Healthcare
- IT and Telecom
- Automotive
- Retail and E-commerce
- Others (Oil & Gas, Education, etc.)
Key Regions and Countries
- North America
- US
- Canada
- Europe
- Germany
- France
- The UK
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- South Korea
- India
- Australia
- Singapore
- Rest of Asia Pacific
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- South Africa
- Saudi Arabia
- UAE
- Rest of MEA
Driver
The Rise of Digital Transactions
In today’s world, more people are using digital payments for their daily needs. This shift means that banks and financial companies need better ways to check if someone can repay a loan and to spot any fraudulent activities.
With more online transactions, there’s a higher chance of fraud, so it’s crucial to have strong systems in place to detect and prevent it. This growing need pushes the development of advanced tools that can quickly assess credit risk and identify suspicious actions. By investing in these tools, financial institutions can protect themselves and their customers from potential losses.
Restraint
Data Privacy Concerns
As financial institutions gather more personal information to improve credit assessments and detect fraud, there’s a growing worry about how this data is used and protected. People are becoming more aware of their privacy rights and expect companies to handle their information responsibly.
Strict data protection laws require organizations to be careful about collecting, storing, and using personal data. If these institutions don’t manage data properly, they could face legal issues and lose the trust of their customers. Balancing the need for detailed data analysis with respecting individual privacy is a significant challenge in today’s digital age.
Opportunity
Artificial Intelligence in Fraud Detection
Artificial Intelligence (AI) offers a promising solution for enhancing fraud detection and credit scoring. AI can analyze large amounts of data quickly, identifying patterns that might be missed by traditional methods.
By using AI, financial institutions can improve their ability to detect fraudulent activities in real-time and make more accurate credit assessments. This not only helps in preventing potential losses but also enhances customer trust by providing a safer financial environment. As AI technology continues to advance, it presents a valuable opportunity for the financial sector to strengthen its risk management strategies.
Challenge
Cross-Channel Fraud
Fraudsters are becoming more sophisticated, often exploiting multiple channels to commit fraud. For example, they might use stolen information online and then make purchases in-store. Detecting this type of cross-channel fraud is challenging because it requires monitoring and analyzing data across various platforms simultaneously.
Financial institutions need to develop integrated systems that can track customer activities across all channels to identify inconsistencies and potential fraudulent behavior. Addressing this challenge is crucial for maintaining security and trust in the financial system.
Emerging Trends
One significant development is the use of alternative data in credit assessments. Lenders now consider factors like utility bill payments and rental histories to evaluate individuals who might not have traditional credit records. This approach offers a more comprehensive view of a person’s financial behavior.
Another trend is the adoption of real-time credit scoring. By analyzing up-to-date information, lenders can make quicker and more accurate lending decisions, benefiting both the institution and the borrower.
Artificial intelligence (AI) has become a valuable tool in fraud detection. AI systems can analyze large amounts of data swiftly, identifying patterns that might be missed by traditional methods. This capability enhances the detection of fraudulent activities, making financial transactions safer.
However, as technology advances, fraudsters are also becoming more sophisticated. There has been a rise in the use of AI by scammers to create convincing fake content, making it more challenging to distinguish between genuine and fraudulent activities.
Business Benefits
- Enhanced Decision-Making: By analyzing various data points, businesses can make more informed lending decisions, reducing the risk of defaults.
- Real-Time Fraud Detection: Advanced systems monitor transactions in real-time, identifying and preventing fraudulent activities promptly.
- Improved Customer Trust: Effective fraud prevention measures help maintain customer trust by safeguarding their personal information.
- Operational Efficiency: Automated credit assessments and fraud detection streamline processes, allowing staff to focus on more complex tasks.
- Regulatory Compliance: Implementing robust fraud detection and credit scoring systems aids in adhering to financial regulations, reducing the risk of legal issues.
Key Player Analysis
Fair Isaac Corporation, widely known for its FICO score, is one of the most prominent names in the credit scoring market. FICO is known for its credit scoring models, widely used by lenders to assess creditworthiness. Beyond scoring, FICO provides analytics and fraud detection solutions, including real-time fraud prevention systems for banks and credit card companies.
Experian plc is a leading global information services company, providing credit scores, credit reports, and fraud prevention tools. With operations in over 37 countries, Experian has a vast network of consumer and business data, making it a powerful player in the credit scoring and fraud detection space.
TransUnion is a major credit reporting agency and a key player in the credit scoring market. Offering credit scores, identity protection, and fraud detection services, TransUnion is instrumental in helping both consumers and businesses manage financial risk. The company provides sophisticated fraud detection tools that use real-time data to identify potential fraudulent activity.
Top Key Players in the Market
- Fair Isaac Corporation
- Experian plc
- TransUnion LLC
- Equifax Inc.
- SAS Institute
- ACI Worldwide Inc.
- IBM Corp.
- Fiserv, Inc.
- VantageScore Solutions, LLC.
- NICE Actimize
- Zoot Enterprises
- Akamai Technologies, Inc.
- Others
Top Opportunities Awaiting for Players
The credit scoring and fraud detection market is rapidly evolving, offering numerous opportunities for industry players to innovate and stay ahead of emerging threats.
- Integration of Advanced Analytics and AI: The use of AI and advanced analytics in credit scoring can significantly enhance the precision of creditworthiness assessments. Financial institutions can employ machine learning algorithms to analyze a wide array of data, allowing for better management of credit risk and fraud detection.
- Fraud Detection for SMEs: As Small and Medium-sized Enterprises (SMEs) become increasingly aware of their vulnerability to fraud, there’s a growing market for scalable and cost-effective fraud detection solutions tailored to their specific needs. The adoption of cloud-based services offers an accessible way for SMEs to enhance their security without substantial upfront investments.
- Authentication Technologies: With the rising sophistication of fraud, such as deepfakes and synthetic identities, there is a significant opportunity in developing more robust authentication methods. Financial institutions need to invest in multilayered authentication controls, including advanced biometrics and dynamic authentication technologies, to secure digital interactions.
- Regulatory Compliance and AML (Anti-Money Laundering): Tightening regulatory frameworks around the world are driving the need for compliant fraud detection systems. Players in the market can capitalize on this by offering solutions that not only meet these regulatory requirements but also provide efficient monitoring and reporting capabilities.
- Fraud Detection as a Service (FaaS): The rise of “Fraud-as-a-Service” models represents a dual threat and opportunity. While it makes sophisticated fraud tools more accessible to criminals, it also creates a niche for security firms to offer comprehensive, as-a-service fraud detection solutions to businesses of all sizes, helping them stay one step ahead of such threats.
Recent Developments
- In August 2024 marked the one-year anniversary of Equifax’s acquisition of Boa Vista Serviços, Brazil’s second-largest credit bureau. This merger has enabled Boa Vista Serviços to leverage Equifax’s global capabilities, including cloud-native data solutions and advanced analytics, to develop new products and expand into additional industries.
- In December 2024, Experian introduced an Integrated Platform designed to seamlessly incorporate analytics into production for credit risk assessment, decision-making, and fraud detection. This cloud-based technology aims to enhance client onboarding and offer bundled solutions.
Report Scope
Report Features Description Market Value (2024) USD 8.5 Bn Forecast Revenue (2034) USD 45.2 Bn CAGR (2025-2034) 18.2% Base Year for Estimation 2024 Historic Period 2020-2023 Forecast Period 2025-2034 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Type of Credit Scoring (Generic Credit Scoring, Custom Credit Scoring), By Fraud Type (Credit Card Fraud, Identity Theft, Loan Application Fraud, Insurance Fraud, Cyber Fraud), By Deployment (Cloud-Based, On-Premises), By Enterprise Size (Small & Medium Enterprise Size (SME’s), Large Enterprises), By Industry (Banking, Financial Services and Insurance (BFSI), Government and Defense, Healthcare, IT and Telecom, Automotive, Retail and E-commerce, Others (Oil & Gas, Education, etc.)) Regional Analysis North America – US, Canada; Europe – Germany, France, The UK, Spain, Italy, Russia, Netherlands, Rest of Europe; Asia Pacific – China, Japan, South Korea, India, New Zealand, Singapore, Thailand, Vietnam, Rest of APAC; Latin America – Brazil, Mexico, Rest of Latin America; Middle East & Africa – South Africa, Saudi Arabia, UAE, Rest of MEA Competitive Landscape Fair Isaac Corporation, Experian plc , TransUnion LLC, Equifax Inc., SAS Institute, ACI Worldwide Inc., IBM Corp., Fiserv, Inc., VantageScore Solutions, LLC., NICE Actimize, Zoot Enterprises, Akamai Technologies, Inc., Others Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three license to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) Credit Scoring and Fraud MarketPublished date: February 2025add_shopping_cartBuy Now get_appDownload Sample -
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- Fair Isaac Corporation
- Experian plc
- TransUnion LLC
- Equifax Inc.
- SAS Institute
- ACI Worldwide Inc.
- IBM Corp.
- Fiserv Incorporation Company Profile
- VantageScore Solutions, LLC.
- NICE Actimize
- Zoot Enterprises
- Akamai Technologies, Inc.
- Others
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