• A more than 600% increase in 3DS transactions in the past year corresponds with a 36% fall in e-commerce payment attacks according to the latest Cybercrime Report from LexisNexis® Risk Solutions
• 3DS authentication process aims to reduce fraud and enhance security in online card payments, as part of the Europe-wide drive towards Strong Customer Authentication (SCA)
• A 21% increase in overall e-commerce transactions was driven in part by 182% growth in Buy Now Pay Later (BNPL) transactions

LexisNexis® Risk Solutions today reveals e-commerce fraud attack rates have declined 36% in the past 12 months, whilst 3DS transactions have grown more than 600% across the same period, led by uptake of the new 3DS 2.x protocol.

The 3DS protocol aims to reduce instances of fraud in online card payments by more accurately determining transaction risk. The updated 2.x protocol, currently being rolled out around the world, includes support for mobile payments and looks to reduce the friction along the customer journey associated with the original protocol. 3DS includes methods of two-factor authentication and is being more frequently introduced as part of the drive towards Strong Customer Authentication (SCA).

The decline in attack rates comes amid continued digital adoption, with a 21% increase in e-commerce transactions over the last year, driven in part by a 182% growth in Buy Now, Pay Later transactions, as well as the huge shift towards ecommerce driven by the global pandemic.

The 9% decline in automated bot attacks seen across e-commerce is in sharp contrast to a significant rise in attacks against media (174%) and financial services (28%) businesses. LexisNexis® Digital Identity Network® detected 189m bot attacks levelled against ecommerce, and a further 683m against financial services and 351m against the media industry in the first half of 2021.

Stephen Topliss, vice president of fraud and identity for LexisNexis Risk Solutions, comments:

“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.”

“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.”