The identity analytics market is projected to grow at 15.3% CAGR during the forecast period of 2020-2025. The increasing demand for mobility solutions and the growing rate of identity-related risks across major industries are some of the factors accentuating the growth of the identity analytics market. Moreover, fraud detection solutions are used to detect the fraudulent activity, and significant risks of fraud cases happen are other prospects fuelling the growth of the market in the coming years. However, the high cost of deploying identity analytics solutions is expected to impede the future growth of the market.
- As stated by the Federal Trade Commission’s (FTC) “Consumer Sentinel Network Data Book,” the most common types of fraud complaints last year (i.e., 2019) were debt collection, identity theft, and imposter scams. The credit card fraud was most prevalent in identity theft instances, while more than 167,000 people reported the opening of a fraudulent credit card account with their information.
- Cybercriminals are diversifying their targets according to the internet security threat-related report by Symantec published in 2019. These criminals are using stealthier methods to commit identity theft and fraud. Various cybercrime groups like Gallmaker, Necurs, and Mealybug are using off-the-shelf tools, and OS features such as PowerShell to attack targets.
- In the present scenario, enterprises’ most significant challenges are the siloed view of identities and access to those identities. This is a result of different departments or SBUs within the organization deploying various types of identity, governance, and infrastructure platforms.
- With the help of an AI-driven analytics solution, enterprises can collect and analyze identity-related data from multiple identities, governance, and infrastructure solutions presently they have. AI-driven solutions increase enterprise-wide visibility to all identities and the access of those identities to the entire organization. This modern approach provides security and risk professionals with contextual insights into low, medium, and high-risk user access at scale. For example, ForgeRock’s “Autonomous Identity” is an emerging approach to identity analytics, which uses machine learning to make an entitlement landscape fully visible, suitable for insights.
- Identity theft cases are on the rise during the COVID-19 pandemic across the world. According to a statement of Chinese officials, the scammers siphoned off more than USD 110,000 in a new COVID-19 related ruse, in which the callers impersonate the MOH, Singapore staff.
- However, some theft recovery companies are offering identity theft coverages at the pandemic time to recover the loss that happened due to fraudulent attempts. For instance, in April 2020, IDentityUSA offers various theft coverage plans for individuals and families and starts as low as USD 15.99 a month, which offers up to USD 1,000,000 in recovery coverage.
Key Market Trends
BFSI Industry is Expected to Grow at a Significant Rate Over the Forecast Period
- Identity theft was one of the significant methods of fraud that affected enterprises globally, according to the Communications Fraud Control Association (CFCA) “Fraud Loss Survey.” In the BFSI sector, identity theft might involve customer or employee accounts being fabricated by cybercriminals.
- Identity fraud in payments and other retail banking functions can even become a starting point for other illegal activities, like money laundering. The banking and financial services industry contributed 62% of exposed data in 2019. However, it accounted for only 6.5% of data breaches, as stated in a Bitglass report.
- Machine learning and predictive analytics can be deployed to secure and safeguard bank accounts against repeated cyber-attacks. For example, Danske Bank has implemented an AI-driven platform to tackle identity-related frauds. The platform analyzes data and scores online transactions in real-time to give actionable insights for every fraudulent activity.
- Previously, HSBC bank has partnered with Silicon Valley-based AI startup Ayasdi to automate some of its identity compliance processes in a bid to become more efficient. HSBC has implemented the company’s AI technology to automate its anti-money-laundering investigations.
North America Geographic Segment is Expected to Hold a Significant Share Throughout the Forecast Period
- The primary driver for the growth of the North America geographic segment is the significant presence of technology providers and the increasing number of identity-related breaches across major industries. These players present in the region are focusing on the development of innovative solutions to stay in the regional and globally competitive landscape.
- In March 2019, there was a sensitive data breach occurs at Capital One Financial Corporation. According to the organization, nearly 106 million individuals from the United States and Canada were affected, making it one of the significant breaches recorded in United States history.
- In March 2020, SailPoint Technologies introduced identity governance for IaaS platforms and workloads. As businesses adopt a multi-cloud platform strategy across Azure, AWS, and the Google Cloud to keep pace with digital transformation, there is a growing need to govern access to all these platforms with a single identity solution.
- With the continuous changes being made and new programs are rolling out owing to the COVID-19 pandemic, including a tax due-date extension from the IRS, scammers have identified an opportunity of doing fraud. The increasing calls from IRS scammers, government healthcare organizations, and Redcross are bolstering the requirement of identity analytics solutions.
The identity analytics market is moderately competitive and consists of a significant number of global and regional players. These players account for a considerable share in the market and focus on expanding their client base across the globe. These vendors are focusing more on the research and development investment, strategic partnerships, and other organic & inorganic growth strategies to earn a competitive edge throughout the forecast period.
- In June 2020, Centrify, a provider of Identity-Centric PAM solutions, unveiled the “Centrify Reliance Partner Program” to educate the Centrify channel partners to meet the demand for Identity-Centric PAM efficiently. The channel partner program offers a wide range of incentives and enhancements for reseller partners to improve customer satisfaction through training and enablement.
- In January 2020, LexisNexis Risk Solutions announced that it had acquired ID Analytics, which is a provider of credit and fraud risk solutions for businesses. ID Analytics’s technology offers risk insights through the combination of patented analytics, proprietary data, and near real-time cross-industry customer identity behavior.
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