E-commerce fraud attacks have dropped by 36% over the past 12 months, as usage of 3-D Secure (3DS) transactions surge, research from LexisNexis® Risk Solutions claimed.
The report claims 3DS transactions, which adds levels of authentication security to a transaction, has rocked by 600% in 12 months.
3DS is designed to reduce fraud in online card payments by accurately determining transaction risk. Methods of protection include two-factor authentication for payments. 3DS 2.x protocol is currently being rolled out around the world, with the aim of reducing friction in the customer journey.
LexisNexis claims there has been a 21% increase in e-commerce transactions over the past year, which was heavily supported by the 182% growth in buy now, pay later transactions.
LexisNexis Risk Solutions vice president of fraud and identity Stephen Topliss said, “Today’s results speak positively of the revised 3DS 2.x protocol and its impact on protecting consumers and businesses from fraud risk, made possible by our evolving regulatory environment.
“The ability to more easily leverage a global network of online behaviour, locational data, device analysis and other inputs within the 3DS protocol means that issuing banks and merchants can more accurately identify both criminals and legitimate, trusted users.â€
“Given the vast increase in ecommerce transactions during the government-imposed lockdowns of the last year, it could be predicted the industry would struggle to cope with fraudulent activity within this period. However, a reduction in attacks suggests 3DS 2.x is playing its part in reducing fraud, therefore safeguarding consumers and defending businesses.â€
LexisNexis recently acquired TruNarrative, a provider of cloud-based financial crime detection and prevention technology. Through the deal, LexisNexis gained a solution provider to offer its customers an array of financial crime prevention tools to help protect more workflows.
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