Multiple studies and sources are coming to the same conclusion: organizations will be spending more on risk management and data analytics to keep up with growing fraud and business trends. This includes $9.2 billion spent on online fraud prevention services, $170 billion spent on cybersecurity and over $200 billion spent on big data analytics globally by 2020.
With payment and online fraud continuing to increase globally, Juniper research predicts annual spending on online fraud detection services across eCommerce merchants and financial institutions will reach $9.2 billion worldwide by 2020. This is just one aspect of risk management that online merchants and financial institutions have to deal with. Gartner estimates the global cybersecurity market exceeded $75 billion in 2015.
Markets and Markets predicts that total IT security spending is growing at rapid rates and will surpass $100 billion in spending by 2018 and $170 billion by 2020. Within the IT security the most growth is expected in the cloud security, mobile security, threat intelligence and security analytics / SIEM subsectors, according to IDC.
IDC also examined B2B spending on big data and analytics, which can apply to risk management, cybersecurity, marketing and more. According to IDC, global revenues for big data and business analytics services exceeded $130 billion in 2016 and will grow to $203 billion by 2020. Financial institutions will represent $17 billion of this total spend.
It’s not only financial institutions that leverage business intelligence, big data and advanced analytics – many eCommerce merchants are turning to these solutions to detect and prevent online fraud. In the 2016 CyberSource North America Fraud Benchmark Report it was found that 48 percent of merchants were using custom fraud scoring models and an additional 5 percent planned to implement them soon. More merchants are using other advanced and analytic-based risk management services as well, like website behavioral analytics which are used by 43 percent of merchants.
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