Social Media Fraud Detection Market Trends

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

• Lack of Awareness About Possible Scams to Hamper Market - The rising risk generated by entering personal details on social media platforms due to low awareness about social media scams results in revenue loss and hampered the data security of the organization. The lack of awareness about the frauds possible through social media platforms is hindering the market growth of social media fraud detection. The high influence of scammers posing as brands and delivering counterfeit products or deceiving customers has majorly originated from Facebook and WhatsApp. Social media platforms have been the most common e-commerce advertising platform and victims are most vocal about these scams. Growth in awareness of these scams beforehand among customers is expected to mitigate the situation of scams on social media platforms.
• Limitations on the Digital Actions
• High Consumption of  Battery Provided in the Device