Latin America fraud detection and prevention market size is expected to gain momentum by reaching USD 2,945.3 million by 2028 while exhibiting a CAGR of 20.0% between 2021 and 2028. Factors such as the increasing incidence of data fraud and the rising adoption of mobile phones are expected to favor the product’s demand in the forthcoming years. According to the latest Pew Research Center Survey, LATAM countries such as Argentina, Venezuela, and Chile have the most smartphone users. For instance, 83% of Argentines, 86% of Venezuelans, and 91% of Chileans own a cellphone. Users are adopting contactless payment modes based on fraud prevention solutions more than ever since the onslaught of the novel coronavirus. As the pandemic has led to seismic effects across several industries, the demand for online platforms has witnessed a massive spurt. Factors such as remote working, the rising digital payment to avoid direct human-to-human contact, and the evolving strategies of the companies are leading to the integration of digitization. Therefore, this is likely to lead to the market exhibiting a stellar 12.0% growth rate in 2020 amid the COVID-19 pandemic.
Based on the vertical, the IT & telecom segment held a Latin America fraud detection and prevention market share of about 13.6% in 2020 and is likely to showcase exponential growth in the forthcoming years. This is due to the increasing adoption of advanced predictive analytics tools and solutions by large enterprises in Latin America to ensure the security of private data. The market for Latin America fraud detection and prevention in the country is experiencing positive signs. This is due to the increasing demand for advanced mobile banking services and online payment applications in the forthcoming years. For instance, in October 2019, Bank of America announced a mobile banking application based on fraud detection solutions. The application is equipped with Erica, an artificial intelligence (AI) driven virtual financial assistant that serves around 29 million mobile application users. The increasing adoption of digitization has led to the growing demand for advanced fraud detection solutions in other Latin American countries such as Peru, Mexico, Jamaica, Aruba, Cuba, and others. This is likely to propel the product’s demand significantly between 2021 and 2028.