40% of North American FI leaders in 2023 ranked 3DS more effective at fraud detection than other CNP fraud controls compared to only 15% in 2021
BEDFORD, Mass.–(BUSINESS WIRE)–Outseer, a leader in providing 3DS Access Control Servers (ACS) and payment fraud prevention solutions, announced today the availability of new global research conducted by Datos Insights focused on Card Not Present (CNP) fraud and the role of 3-D Secure (3DS).
The research shows that in regulated markets, like Europe and Australia, where up to 50% of CNP transactions are protected by 3DS, fraud rates are three to six times lower than for all CNP transactions.
“When used comprehensively, 3DS has proven itself to be incredibly impactful at preventing fraud while optimizing the customer experience, and this report confirms the amazing results issuers are seeing,” says John Filby, Outseer CEO. “The Outseer 3DS solution has proven itself to be a market leader in driving superior fraud reduction, at lower operational costs, higher interchange income, and the lowest intervention rates in the market saving our customers $10s of millions each year relative to alternative solutions.”
“The data is clear: invoking 3DS has a significant impact on CNP performance. In the UK, when 3DS is used to protect CNP transactions, card authorization rises to an impressive 90-96% versus a mere 70-75% authorization rate without 3DS,” says Julie Conroy, Chief Insights Officer, Datos Insights. “Coupled with lower fraud rates for 3DS-protected transactions, issuers are simultaneously elevating the customer experience, reducing fraud losses, and maximizing revenues.”
Additional insights and recommendations include:
- 3DS authentication data is a valuable input to card authorization systems. A majority of FIs in North America, Europe, and Australia send 3DS authentication data to their fraud authorization platform today or have plans to do so in the next one to two years.
- FI perceptions of 3DS compared to other fraud controls are improving dramatically in North America. The 2023 survey showed that 40% of respondents rated 3DS as “better than our other CNP fraud controls” compared to only 15% of respondents in 2021. Additionally, 70% of NA interviewees in 2023 rated 3DS as good as or better than other CNP fraud controls compared with 51% in 2021.
Learn more about the study findings and how the Outseer 3DS ACS platform can help your organization address CNP fraud by getting a copy of the report, “CNP Fraud and the Role of 3-D Secure: A Tale of Different Countries” or register for the November 29th webinar with Julie Conroy, Datos Insights Chief Insights Officer, and Scott Olson, CMO of Outseer.
About the Study
Datos Insights report, sponsored by Outseer, surveyed fraud executives at large FIs in Q3 2023 in Australia, Canada, Germany, the U.K., and the U.S. to understand the trends associated with using 3-D Secure to protect Card Not Present transactions.
At Outseer, we are empowering our customers to liberate the world from digital fraud by providing solutions that stop fraud, not customers. Our market-leading transactional risk management platform is used by thousands of financial institutions around the world to protect millions of customer accounts and hundreds of billions of banking and card not present transactions annually. Leveraging proven data science, including our proprietary consortium data, our machine learning platform delivers the highest fraud detection rates, lowest false positive rates, and lowest customer intervention in the industry.
About Datos Insights
Datos Insights is an advisory firm providing mission-critical insights on technology, regulations, strategy, and operations to hundreds of banks, insurers, payments providers, and investment firms―as well as the technology and service providers that support them. Comprising former senior technology, strategy, and operations executives as well as experienced researchers and consultants, our experts provide actionable advice to our client base, leveraging deep insights developed via our extensive network of clients and other industry contacts.