Social Media Fraud Detection Market size was over USD 45.84 Billion in 2023 and is poised to exceed USD 269.55 Billion by 2036, witnessing over 14.6% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of social media fraud detection is estimated at USD 51.68 Billion. The growth of the market can be attributed majorly to the growing prevalence of social media among the global population. People are notably active on social media platforms for multiple purposes such as, supporting their business, sharing images and videos with their friends and family, and others. Social media has made s significant place in everyone’s life. For instance, more than 55% of the global population was noticed to be using social media in 2023.
In addition to these, global social media fraud detection market trends such as rising cases of online fraud and cybercrimes triggering the demand for bot protection across the globe are expected to boost the market growth over the forecast period. It not only protects all the access points but also analyses and collects bot traffic to pinpoint anomalies. Bot protection solution also proactively detects fraud 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. For instance, nearly 98% of smartphone users were noticed to be using AI-powered voice assistants while more than 32% of companies were anticipated to be using AI, and more than 40% of companies are noticed to be exploring AI for implementation.
Growth Drivers
Growing Revenue Losses to Act as a Driver for the Growth of the 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 in safety measures leading to the 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. For instance, it was estimated that enterprises across the globe witness around 120 security breaches per year. Additionally, in 2022, 11,000 incidents of phishing attacks occurred worldwide causing around USD 12 million.
Rising 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 scams, cash grabs, quiz scams, membership scams, cryptocurrency, fake competitions, subscription traps, and others. Among the various users of social media, a significant percentage of the population is affected by the threats of security and fraud. 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. As of 2022, the data breach cost was estimated to be around USD 4 billion across the globe and it is further anticipated to hit approximately USD 10 trillion by 2025.
Increasing Utilization of Smartphones – penetration of smartphones is estimated to drive market growth since a higher number of people use social media via smartphones. It is quite convenient to use social media platforms through phones than laptops and desktops. For instance, the penetration rate of smartphones across the globe was anticipated to be around 50% in 2020 and is further anticipated to reach around 90% by 2040.
Growing Awareness of Security Breaches - security breaches are observed to cause significant amounts of money to the organization and this factor makes it necessary to take the assistance of social media fraud detection solutions. For instance, the total cost caused by security breaches was estimated to be around USD 4 million in 2020 in the United States.
Rising Adoption Rate of Cloud Computing Services – people are more inclined to access cloud computing services since they are highly convenient to access but also have a high potential to be breached. Hence, this factor is estimated to boost the market growth over the forecast period. As of 2019, nearly 90% of the organization were noticed to be using could computing services.
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
14.6% |
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Base Year Market Size (2023) |
USD 45.84 Billion |
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Forecast Year Market Size (2036) |
USD 269.55 Billion |
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Regional Scope |
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Fraud Type (Social Media Phishing, Malware Frauds)
The global social media fraud detection market is segmented and analyzed for demand and supply by fraud type into social media phishing, malware frauds, scams, counterfeit frauds, fraudulent advertisement, and others. Out of these types of frauds, the fraudulent advertisement segment is estimated to gain the largest market share in the year 2036. The growth of the segment can be attributed 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, fraud is also becoming more and more prevalent. For instance, as of January 2023, the total number of people on social media across the globe was estimated to be around 4.5 billion. It has resulted in rising concern for social media security 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 how many people can be reached through fraudulent activities.
Component (Software, Services)
The global social media fraud detection market is also segmented and analyzed for demand and supply by component into software and services. Between these two segments, the software segment is expected to garner a significant share in the year 2036. The segment growth can be accounted the ease of access to the 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, the software can help cater to many people at once. As social networking services are growing, it has resulted in an increasing 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.
Our in-depth analysis of the global market includes the following segments:
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By Fraud Type |
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By Component |
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By Solution |
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By End-User |
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North American Market Forecast
The North American social media fraud detection market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2036. The growth of the market can be attributed majorly to the increasing number of people in the region using social media boosting the demand for penetration testing on social media platforms. Social media is a typical medium to plan and execute cyber-attacks. 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 is expected to 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.
Europe Market Forecast
The European social media fraud detection market, amongst the market in all the other regions, is projected to hold the second largest share during the forecast period. The growth of the market can be attributed majorly to the rising digital fraud cases in Europe on account of the generation of massive amounts of enterprise data and technological advertisements. Furthermore, owing to the increasing size of enterprise data, analysis of the data becomes a complex process that results in such incidents which are mainly related to stock theft, information theft, and internal financial fraud. Such factors are anticipated to drive the growth of the Europe social media fraud detection market.
APAC Market Statistics
Additionally, the Asia Pacific social media fraud detection market, amongst the market in all the other regions, is projected to hold a notable share during the forecast period. Asia Pacific has one of the largest consumers of internet and IT services which has the high potential to plan and impose media fraud. Furthermore, the presence of a large number of social media users in the region backed by the constantly growing population is also anticipated to hike the market growth over the forecast period. For instance, approximately 52% of social media users are anticipated to be living in the Asia Pacific region.
Proofpoint, Inc., offered organizations with advanced threat protection across email and endpoints. The company provided this service with Microsoft Defender. This integration is expected to be available in the market in early 2023.
Human Security, Inc., merged its path with Fastly, Inc. to provide industry-leading bot protection. The company is also active in the field of fraud and account abuse prevention to eliminate cybercrimes from online applications and services.
Author Credits: Abhishek Verma
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