White Papers

3-D Secure: The Force for CNP Fraud Prevention Awakens

Card-not-present (CNP) fraud is on the rise across the globe, fueled by a perfect storm. E-commerce is growing at a rapid clip, outpacing physical store sales in many areas. Chip cards are replacing the ineffective mag stripe in countries around the world, making counterfeit card fraud much more difficult to perpetrate and prompting a migration to CNP fraud. At the same time, data breaches are rampant, providing criminals with a robust supply of stolen card data.


Merchants and issuers alike are increasingly looking to add 3-D Secure (3DS) to their CNP fraud-prevention toolkits. Merchants are driven by the desire to stem rising fraud losses, while issuers are motivated by a desire to rein in fraud and also maintain consumer confidence in the security of online transactions. While 3DS stumbled out of the gates in its original incarnation, significant changes to the protocol have been realized in the ensuing years to make it much more user friendly.

This white paper provides an overview of the current CNP threat environment and discusses 3DS’ progression from a clunky attrition machine to a valued tool in merchants’ and issuers’ fraud-mitigation arsenals.