More data, more problems? The rapid adoption of Big Data is shaping a market for threat detection software just as robust. Every day thousands of transactions and customer data files are processed, but mixed into the valid ones are potential threats to businesses. More businesses are abandoning outdated security methods and turning to fraud analysis and complex event processing software to identify, analyze and prevent transgressions.
Fraud can take many forms, from false insurance claims to fraudulent transactions. B2B suppliers and eCommerce are some of the most frequent victims. Counterfeit eCommerce transactions account for some $5 billion, and they’re on the rise, jumping some 70 percent over the past two years. Combating cybercriminals is easier said than done, especially as the number of transactions increases every day. Fraud analytics helps businesses avoid breaches by processing incoming data and looking for anything that’s out of the ordinary. The approach may differ from software maker to software maker as they employ different analytical methods, but the final goal is the same. At its most basic, fraud analytics software helps identify suspicious activity faster than the old-fashioned way.
A group of new studies shows the fraud analytics market is growing worldwide. Over the next five years, analysts expect the market to grow at an annualized rate of 24 percent. SMEs will drive global demand, according to recent research from Solution. In particular SMEs in the Asia-Pacific and Latin American regions will bolster the growth rate. Businesses recognize the importance of preventing fraud, but there are challenges ahead. Fraud analytics remains a lesser known form of prevention, and many software providers still have a high cost of deployment.
Awareness is the easier of the two challenges to tackle. Awareness level will increase as the market matures. The Solution study expects the cost to remain a primary concern. Some software providers are using the cloud to lower the expense and technological investment relating to implementing fraud analytics solutions. Cost-effective and easy to setup, cloud-hosted SaaS has multiple benefits. SaaS applications cost less than onsite enterprise software, can often be paid for on a per use or subscription basis and have lower upfront costs, removing much of the capital expense.
Similar to fraud analytics, complex event processing (CEP) is used to mine data for risk. Unlike most fraud analytics software, CEP doesn’t require structured data sets. By releasing data from the rigid structure of databases, tools using CEP can increase their analytical power to real time. This capability makes the technology of high interest to capital markets, manufacturing and the transportation and logistics industries. Recent research from MarketsAndMarkets extends the ability of CEP to compliance.
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