Owing to the growing number of social media users, fraudsters with malicious motives use these platforms to steal sensitive information or provide misleading data to users, worldwide. Social media fraud detection solutions help secure important data and save significant amounts of money for the involved organizations and individual social media users. This is done with assistance from new technologies and services.
A huge boost in social media fraud detection market worldwide has been observed on the back of the emergence of the COVID 19 pandemic. Given the rising incidents of cybercrimes and theft, the market size has grown significantly in current circumstances. During the unprecedented and unpredictable times created by COVID-19, millions of people do work from home and opt to buy goods and services online. This has led to rise in fraudulent activities as more and more vulnerable people are forced to go online in order to sustain themselves.
The global social media fraud detection market is expected to record a CAGR of 18.80% over the forecast period, i.e., 2020-2028. The market was valued at USD 467.20 million in 2019 and is expected to reach USD 2202.17 million by 2028. In 2020, the market was valued at USD 555.03 million.
Regional Growth Highlights During 2019-2028
The social media fraud detection market in North America region held the highest share in 2019 with a value of USD 127.09 million. According to Consumer International Organization, in 2019, there were 89.9 million social media users in the US alone. The digital ecosystem in North America is changing drastically and rapidly coupled with the growing proportions of advertising budgets being spent on mobile advertising. As the advertising expenditure is growing, the fraudulent players will exploit the digital advertising ecosystem for their monetary gain, which is anticipated to drive the growth of the social media fraud detection market in North America.
European region is expected to hold the second largest market share in the global social media fraud detection market. This region recorded a market size of USD 110.15 million in 2019. Digital fraud cases in Europe are rising on account of the generation of massive amounts of enterprise data and technological advertisements. On account of the increasing size of enterprise data, analysis of the data becomes a complex process which results in such incidents which are mainly related to stock theft, information theft, and internal financial frauds. Such factors are anticipated to drive the growth of the Europe social media fraud detection market.
The study further incorporates Y-O-Y Growth, demand & supply and forecast future opportunity in North America (United States, Canada), Latin America (Brazil, Mexico, Argentina, Rest of LATAM), Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX [Belgium, Netherlands, Luxembourg], NORDIC [Norway, Denmark, Sweden, Finland], Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman], North Africa, South Africa, Rest of Middle East and Africa). CLICK TO DOWNLOAD SAMPLE REPORT
Market Segmentation Synopsis
By Fraud Type
Based on the fraud type, the global social media fraud detection market is segmented into social media phishing, malware frauds, scams, counterfeit frauds, fraudulent advertising, and others. Out of these the fraudulent advertising segment held a 36.9% share in 2019 owing to the ease with which one can publish an advertisement on various social media platforms without having to disclose much information about themselves. As the number of social media users is growing, frauds are also becoming more and more prevalent. It has resulted in rising cyberbullying, hacking, relationship fraud, health issues, and social and family life loss. A significant portion of the global population is actively using social media on a regular basis through platforms such as Facebook, Twitter, Instagram and WhatsApp. As a result, one can imagine the number of people one can reach through fraudulent activities.
According to Our World In Data, social media platforms are used by even 1 in 3 people. In 2018, Facebook was the most popular social media platform with around 2.3 billion users. Such numbers show us the necessity for a strong fraud detection platform for all social media. On the basis of component, the global social media fraud detection market is segmented into software and services. Out of these, the software segment is expected to hold a major share owing to the ease of access to software as compared to services. Software applications are accessible from anywhere in the world with an internet connection. Also, the software applications can be updated and modified remotely, causing greater concern for fraudulent activities. Even though services are more personalized, software can help cater many people at once. As social networking services are growing, it has resulted in increasing the amount of sensitive information which is stored online and linked to social networking services accounts. Such a factor is anticipated to drive the growth of the software segment in the global social media fraud detection market.
On the basis of solution, the global social media fraud detection market is segmented into social media content verification solution, digital self defense application, bot protection solution, social media monitoring solution, advertising verification solution, and others. Out of these, the bot protection solution held 38.5% share in 2019. Bot protection solution is expected to grow at a robust pace in the social media fraud detection market. It not only protects all the access points, but it also analyses and collects bot traffic to pinpoint anomalies. Bot protection solution also proactively detects frauds and enables robust information security. The rising adoption of technologies, for instance, AI and machine learning, could boost the demand for bot protection solutions on a wider scale.
On the basis of end-user, the market is segmented into organizations and individuals out of which organizations segment is expected to hold the major share owing to the fact that they produce more valuable data on average as compared to individuals. Organizations such as small, medium, and large business firm which include new agencies, advertising companies, public relation firms, and others often use social media for advertising their new product or a new service. Out of all the types of organizations, small and medium business firms are the most vulnerable to frauds, whereas large enterprises have enough capital to protect themselves from frauds such as social media phishing, fraudulent advertising, malware fraud, counterfeit fraud accounts, and scams including e-commerce scams, investment scams, imposter scams, and others. As new start-ups and new business enterprises are being introduced into the market, fraudsters are rising to create problems in a company or a start-up contributing to the social media fraud detection market across the world.
By Size of Organization
On the basis of size of organization, the market is segmented into small & medium organization and large organization. Out of these large organizations are more prone to data theft but have the necessary funds to protect themselves with the use of costly and powerful protective measures. The small & medium organizations often face more losses through scams and other fraudulent activities. As a result, they hold a more significant market share and help contribute to the global social media fraud detection market.
By Organization Type
On the basis of organization type, the market is segmented into news agencies, advertising companies, public relation firms, and others. It has been estimated that these organizations are more prone to attacks from fraudsters as they use social media to advertise themselves. As a result, they are investing more in fraud detection solutions which in turn is driving the social media fraud detection market. Companies that are involved in advertising use social media widely for both business-to-business and business-to-consumer transactions which makes them vulnerable to cybercrimes. Organizations are relying more on the internet especially owing to the pandemic which has led to a rise in cyber-attacks on them. This is expected to drive the growth of the social media fraud detection market.
Market Drivers & Challenges
Increasing Social Media Frauds To Boost Market Growth
According to Consumer International Organization, online conversations about scams have doubled within a period of two years (Aug 2016-Aug 2018). This raises an issue of safety which could directly alter the market presence and brand image of the social media platform. This, as a result, propels the growth of the social media fraud detection market. The major types of social media scams are catfish, clickbait scam, cash grabs, quiz scams, membership scams, cryptocurrency, fake competitions, subscription traps and others. Among the various users of social media, a significant percentage of population are affected by the threats of security and frauds. Through social media, criminals get access to vast volumes of personal data and as a result engage in targeting demographic groups, by hiding their true identity and misleading the consumers. This is expected to act as a major driver for the growth of the social media fraud detection market.
Increasing Revenue Losses To Act As A Driver For The Growth Of Social Media Fraud Detection Market
By replicating the original social media platform, fraudsters are able to cause massive revenue losses for these companies. The damage done is often irreversible and as a result, these companies invest heavily on safety measures leading to growth of the social media fraud detection market. Financial losses occur in these scams which is the main motive of the fraudsters on the social media platform. Additionally, these scams also provide negative brand image and reputation damage by replicating actual brands and reviews to gain money from the individuals or organizations who are being targeted.
Lack Of Awareness About Possible Scams To Hamper Market
The rising risk generated by entering personal details on social media platform due to low awareness about social media scams results in revenue loss and hampered data security of the organization. The lack of awareness about the frauds possible through social media platform is hindering the market growth of social media fraud detection. High influence of scammers posing as brands and delivering counterfeit products or deceiving the customers have majorly originated from Facebook and WhatsApp. Social media platforms have been the most common e-commerce advertising platform and victims are mostly vocal about these scams. Growth in awareness on these scams beforehand among the customers is expected to mitigate the situation of scams on social media platforms.
Impact of COVID-19 on Social Media Fraud Detection Market
A huge boost in social media fraud detection market worldwide has been observed owing to the emergence of the COVID 19 crisis. Given the rising incidents of cybercrimes and theft, the market size has grown in current circumstances. During the unprecedented and unpredictable times created by COVID-19, millions of people are working from home and opting to buy goods and services online. Quarantine has changed lives across the globe, with customers purchasing electronics, furniture, as well as things like home appliances and DIY products online. This has led to a rise in fraudulent activities thus providing a boost to the global social media fraud detection market.
Some of the prominent industry leaders in the global social media fraud detection market are Proofpoint, Inc, FraudWatch International Pty Ltd, Harlequin CDIS, White Ops, Inc., Media Vax, IdentityForce, Inc., CSID, and Equifax, Inc. among others.
FREQUENTLY ASKED QUESTIONS
The increasing social media frauds and the rising revenue losses owing to malicious activities by fraudulent users is expected to act as a major driver for the growth of the social media fraud detection market.
The market is anticipated to attain a CAGR of 18.80% over the forecast period, i.e. 2020-2028.
The major players in the market are Proofpoint, Inc, FraudWatch International Pty Ltd, Harlequin CDIS, White Ops, IdentityForce, Inc, CSID, Equifax Inc. among others.
The company profiles are selected based on the revenues generated from segments, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
The social media fraud detection market is majorly segmented by fraud type, component, solution, end-user, size of the organization, organization type and by region.
Rising rate of urban population and digitalization are estimated to be significant growth indicators for urban area segment growth.
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