Global ATO Prevention in Banking Market - Focused Insights 2025-2030

ATO PREVENTION IN BANKING MARKET INSIGHTS

The global account takeover (ATO) prevention in banking market was valued at USD 953.98 million in 2024. It’s projected to reach USD 1.60 billion by 2030, growing at a CAGR of 9.01%. This growth is driven by the surge in electronic transactions and increasingly advanced cyber threats. Banks are upgrading their defenses to detect and block ATO attempts before financial losses occur to stay ahead.

Traditional password-based security is no longer effective against phishing and credential-stuffing attacks. As a result, banks are shifting to FIDO2 authentication, hardware security keys, and biometrics. Customers now expect smooth, secure, and user-friendly digital banking experiences. Passwords and one-time passcodes (OTPs) are no longer enough to stop ATO fraud.

MARKET TRENDS & DRIVERS

Expansion of Biometric Authentication

Biometric authentication is becoming a key tool in preventing ATO in banking. It replaces passwords and PINs with fingerprints, facial recognition, voice ID, and behavioral biometrics. Regulations, AI advancements, digital banking growth, and the demand for seamless security drive this shift. Cybercriminals often use stolen credentials to commit ATO fraud. Traditional methods like passwords and SMS-based OTPs are vulnerable to phishing and SIM swapping. Biometrics reduces these risks by ensuring only the real user can access the account, boosting demand for behavioral biometric solutions. Modern biometric systems use AI to monitor user behavior, like typing speed, mouse movement, and screen interaction, to detect spoofing attempts. This enables continuous authentication throughout a session, making account takeovers harder. As users seek smoother digital experiences, banks are adopting passwordless biometric logins. Facial recognition and fingerprint scans offer a fast, secure way to access accounts without the need to remember passwords.

Rise in Large-Scale Phishing Attacks

Phishing scams have become a major driver of ATO fraud, posing a serious threat to banks. In Q4 2024 alone, the Anti-Phishing Working Group (APWG) reported 989,123 phishing cases globally. Scammers use fake emails, SMS (smishing), and phone calls (vishing) to trick users into sharing login details. These attacks are growing more advanced, powered by AI-driven phishing kits that automate fake campaigns. Hackers use machine learning to craft highly personalized emails that mimic real bank messages, making them hard to spot. Deepfake voice tools and AI chatbots further boost phishing success rates. Since phishing often compromises passwords, banks are adopting stronger MFA tools like biometrics, hardware security keys, and app-based authentication. Governments and regulators are also enforcing stricter cybersecurity rules to fight phishing-related ATO fraud. As a result, there's a rising demand for phishing-resistant MFA, AI-based behavioral analytics, and advanced anti-phishing solutions to protect banking customers from account takeovers.

ATO PREVENTION IN BANKING MARKET HIGHLIGHTS

• By Service Type: In 2024, the pre-transaction prevention segment held the largest global account takeover (ATO) prevention in the banking market share of the ATO prevention market, accounting for over 48%. This segment focuses on blocking fraud before a transaction occurs by verifying user identity and intent. Banks use technologies like multi-factor authentication (MFA), risk-based authentication (RBA), identity verification, device fingerprinting, and privileged access management (PAM) to stop unauthorized access. The rise in ATO attacks—driven by data breaches, phishing, and credential stuffing—has made these tools critical. Cybercriminals often use stolen credentials found on the dark web and deploy bots to test them across banking platforms. With millions of fraudulent login attempts occurring daily, banks are turning to AI-powered tools for risk detection. Solutions like behavioral biometrics, AI-driven RBA, and device fingerprinting are becoming standard to block automated and bot-based attacks. Cloud-based fraud detection tools are also gaining traction, offering real-time monitoring and faster threat response.
• By Development Type: The cloud-based ATO prevention segment is growing quickly, with the highest CAGR of 10.07% during the forecast period. As cyber threats evolve, banks are turning to cloud-based solutions for scalable, AI-driven protection. With the rise of mobile banking, open APIs, and digital platforms, banks need real-time security tools that can adapt fast. Cloud-based ATO platforms offer 24/7 monitoring, AI-powered fraud detection, and seamless integration across systems to block account takeovers instantly. These solutions enable banks to analyze millions of transactions per second and flag threats in real-time. AI and ML play a key role in providing predictive analytics, behavioral biometrics, and anomaly detection. Cloud platforms also use risk scoring, fraud pattern analysis, and identity proofing to stop fraud before it happens.s.

GEOGRAPHICAL ANALYSIS

In 2024, North America held the largest share of the global account takeover (ATO) prevention in banking market. One of the key drivers is the rise in sophisticated cyberattacks. Hackers now use deepfakes, credential stuffing, phishing, and social engineering to bypass outdated security systems. Growing cases of authorized push payment scams and synthetic identity theft have pushed banks to strengthen ATO defenses. The region’s rapid digital banking growth is another major factor. Consumers increasingly use mobile banking, contactless payments, and peer-to-peer platforms like Zelle, Venmo, and Cash App.

The APAC region is expected to see the fastest growth during the forecast period. Rapid digitalization and a surge in online banking have made it a target for cybercriminals. In response, banks are deploying biometric authentication and AI-based fraud detection. Growth is fueled by a rising user base and increased investment in digital infrastructure.

COMPETITIVE LANDSCAPE

The global account takeover (ATO) prevention in banking market includes exclusive data on 24 vendors. It is highly competitive, with companies striving to stand out through innovation, broad service offerings, and strategic partnerships. Competition is shaped by technology advancements, regulatory demands, and customer experience. New entrants face challenges due to the strong brand presence of established cybersecurity firms. Banks prefer long-term partnerships with trusted vendors, making it harder for newcomers to gain traction. The market also faces risks from low-cost, low-quality security tools that offer minimal protection and introduce vulnerabilities. Looking ahead, ATO prevention will rely on advanced, secure, and user-friendly technologies. Vendors will move away from passwords and OTPs, focusing instead on behavioral biometrics, AI/ML-driven tools, and seamless authentication methods.

RECENT VENDOR ACTIVITIES

• On September 12, 2024, Mastercard announced an agreement to acquire global threat intelligence company Recorded Future from Insight Partners for $2.65 billion. This acquisition enhances Mastercard's cybersecurity capabilities, strengthening the insights and intelligence used to protect the digital economy, including the payments ecosystem and beyond.
• On December 4, 2023, Thales announced the successful completion of its acquisition of Imperva. This transaction is expected to create substantial value for Thales' shareholders.