Cost-savings grow despite rise in AI-enabled fraud detection spend

A new study from Juniper Research has found the global business spend on AI-enabled financial fraud detection and prevention strategy platforms will rise from just over $6.5bn in 2022 to $10bn by 2027. Growing at 57% over the period, the report predicts that as fraudsters become more sophisticated in their attacks, merchants and issuers will become more adept at utilising highly advanced AI-enabled fraud detection methods to combat crime. The report identified the ability of AI to recognise fraudulent payment trends at scale as being critical to provide improved fraud prevention. AI-enabled fraud detection and prevention market platforms use AI to monitor transactions and identify fraudulent transaction patterns, reducing fraud risks by blocking transactions in real-time. The research analysis predicts cost savings from AI deployment will be critical to taking system use beyond regulatory compliance.