Identity Theft Protection Market

Identity Theft Protection Market is anticipated to grow at a CAGR of 13.5% in the forecast period (2024-2034), with the market size valued at USD 12.8 billion in 2023 and projected to reach USD 51.9 billion by 2034.

Product Overview

Identity theft protection means a range of strategies and services that are formulated to protect individuals from unauthorized exploitation of their personal information for fraudulent uses. It involves active measures that are aimed at preventing identity theft and reducing its potential outcome. Identity theft protection has several key components such as credit monitoring, which alerts individuals to any suspicious activity on their credit reports, and identity monitoring, which explores various channels for indications of illicit use of personal data. In addition, identity theft protection services include identity theft insurance to cover financial losses due to thefts, as well as aid in resolving issues. Moreover, education on best practices for protecting personal information and guidance on steps to take if identity theft occurs are typically provided. Therefore, identity theft protection endeavours to furnish individuals with assurance and security amid the prevalent digital landscape where personal data is susceptible to exploitation.

Market Highlights

Identity Theft Protection Market is expected to exhibit a CAGR of 13.5% during the forecast period, 2024-2034

Identity Theft Protection Market is anticipated to reach USD 51.9 billion, growing at a CAGR of 13.5% during the forecast period, owing to rising awareness of cybersecurity risks and the growing incidences of identity theft across the world. Digital transactions are becoming common and vast amounts of personal data are stored online, due to which individuals and organizations are focusing on protecting their sensitive information. This rise in demand has caused a surge in the adoption of identity theft protection services, including credit monitoring, identity monitoring, identity theft insurance, and resolution assistance. Moreover, the identity theft protection market has intense competition among key players that offer customized solutions to address the requirements of consumers and enterprises. In addition, technological innovations such as artificial intelligence and machine learning are being used to improve the effectiveness of identity theft protection products. Thus, the identity theft protection market will witness sustained growth as cybersecurity continues to be a major concern for individuals and businesses.

Source: Fatpos Global

Identity Theft Protection Market Segmentation

Credit Card Fraud segment will dominate the industry owing to its extensive usage

Identity theft market is segmented based on Type into Credit Card Fraud, Bank Fraud, Phone or Utility Fraud, and Employment or Tax-related Fraud. The credit card fraud segment is expected to have the highest market share as credit cards are extensively used for financial transactions, which makes them a prime target for fraudulent activities. In addition, improvements in technology have enabled the creation of advanced methods for stealing credit card data, such as skimming devices and phishing schemes. The growth of online shopping and digital payment platforms has further increased the risk of credit card fraud, as transactions often include the sharing of sensitive information over the Internet. Furthermore, credit card fraud can result in major financial losses for both individuals and financial institutions, thereby pushing the need for identity theft protection solutions.

Consumers segment to lead the market due to high consumer presence across online platforms

Identity theft protection market is segmented based on Application into the Enterprise and Consumer segments. The consumer segment will lead the identity theft protection market due to growing awareness of data breaches and the increasing digitization of personal data that has made the public more vigilant about protecting their identities. Thus, there's a surge in the demand for protective measures among consumers. Additionally, the consumer segment represents a huge market base compared to companies, as virtually all individuals are potential targets of identity theft. Moreover, subscription-based services like credit monitoring and identity theft insurance are more commonly used by people, which further boosts the adoption of identity theft protection services. Therefore, these factors position the consumer segment as the key force behind the growth of the identity theft protection market.

Market Dynamics

Growth Drivers

High Cybersecurity Awareness Has a Major Impact on the Utilization of Identity Theft Protection Services

Growing awareness of cybersecurity risks is acting as an important growth driver for the identity theft protection market. People are acknowledging the threats presented by identity theft, due to which companies are taking active measures to reduce these risks. This increase in awareness is due to the vast media coverage of high-profile data breaches and other cyberattacks, that compel consumers and businesses to prioritize protection methods. Consequently, there is an expanding demand for identity theft protection services such as credit monitoring, identity monitoring, and resolution assistance. Furthermore, as more individuals understand the significance of proactive measures, the market is expected to witness growth due to the need to reduce risks and protect against the financial and reputational consequences of identity theft.

Frequent Technological Innovations are Essential for the Growth of Identity Theft Protection Market

Technological improvements are necessary for pushing the growth within the identity theft protection market. Innovations in artificial intelligence, machine learning, and data analytics are empowering service providers to develop highly advanced detection and prevention abilities. These developments help in the identification of several patterns that signal fraudulent activities and promptly alert users of suspicious activities. Moreover, advancements in encryption and cybersecurity infrastructure are ensuring the security of personal data and improving the protection against identity theft. Thus, with the evolution in technology, identity theft protection will become more effective and efficient, thereby attracting greater interest and investments from consumers and businesses. This continuous cycle of technological innovation is assisting the identity theft protection market to continuously evolve and expand during the forecasted period.

Restraints

Evolving Threat Ecosystem Can Discourage Consumers From Using Identity Theft Protection Services

Continuous evolution of cyber threats is a major limitation of the identity theft protection market. Cybercriminals are developing advanced methods to take advantage of vulnerabilities in networks and systems, due to which, identity theft prevention systems must constantly evolve to keep up with the pace of new threats. By failing to do this, companies and users can become vulnerable to identity theft incidents as traditional defences against threats are becoming ineffective. Moreover, the evolution of technology presents fresh challenges for identity theft protection providers. This requires constant investments in research and development to remain ahead of cyber threats. Thus, even with improvements in defence mechanisms, the dynamic nature of cyber threats continues to be a major challenge for the identity theft protection market.

Recent Developments

• In 2023, Equifax launched a better cloud for identity, which is a platform for comprehensive identity threat detection and management. They also successfully acquired Kount, which is a company that specializes in fraud prevention solutions.
• In 2023, Experian enhanced IdentityWorks with AI-powered threat detection and expanded monitoring capabilities. They have successfully formed a partnership with Mastercard to offer identity protection services to Mastercard cardholders.
• In 2023, Lifelock introduced Norton 360 with LifeLock Select, a bundled security and identity protection solution. They have successfully acquired A-Lert which is a provider of identity theft protection and credit monitoring services.
• In 2023, TransUnion introduced TruValidate, which is a biometric authentication solution for improved online security. They have also successfully formed a partnership with Visa to offer identity protection services to Visa cardholders.
• In 2023, IdentityForce launched IdentityForce which is a complete, comprehensive identity protection plan with enhanced monitoring and restoration services. They have also expanded data breach monitoring capabilities to include different types of social media platforms.

Identity Theft Protection Market

Key Players:

• Equifax
• Experian
• Lifelock
• TransUnion
• IdentityForce
• Norton LifeLock
• Credit Sesame
• Aura
• AllClear ID
• Intersections Inc.
• OnGuard
• TrustedID
• Zest Finance
• Privacy Guard
• McAffee
• Other Prominent Players (Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)

Regional Analysis

Identity Theft Protection Market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. The North American region is expected to lead the Identity Theft Protection market as the region benefits from a highly developed technological infrastructure and vast internet access, which promotes high usage of digital services that are vulnerable to identity theft. Moreover, strong regulatory frameworks and consumer protection laws across the U.S. and Canada are incentivizing individuals and businesses to invest in identity theft protection solutions. Thus, North America hosts multiple renowned identity theft protection providers that offer a diverse range of services that are customized to address the needs of consumers and enterprises.

In contrast, Asia Pacific is expected to follow North America as the region is witnessing fast expansion of its digital economy, combined with a growing incidence of cybercrime and identity theft. Moreover, the vast adoption of smartphones and online banking services is amplifying the need for identity theft protection solutions in the Asia Pacific region.

Source: Fatpos Global

Impact of Covid-19 on Identity Theft Protection Market

COVID-19 pandemic has significantly impacted the identity theft protection market in various ways. Initially, the adoption of remote work and high dependence on online transactions expanded the attack potential for cybercriminals and resulted in a surge of identity theft incidents. The economic downturn due to the pandemic again left many individuals financially vulnerable and made them susceptible to identity theft scams. However, amidst these challenges, the pandemic also accelerated the adoption of digital identity verification solutions as companies focussed on protecting remote authentication. This high emphasis on digital identity solutions presented various opportunities for growth in the identity theft protection market post-pandemic, as organizations looked for better security measures to combat identity theft and fraud.

Identity Theft Protection Market is further segmented by region into:

• North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
• Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America
• Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey, and Rest of Europe
• Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC
• Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa, and Rest of MENA

Identity Theft Protection Market Scope and Segments:

Frequently Asked Questions (FAQ):