The January 2023 Aite-Novarica Group report examines how U.S. e-commerce merchants use 3-D Secure (3DS) to combat online fraud and adapt to industry changes effective October 2022. E-commerce sales surged during the pandemic, compressing nearly nine years of growth into two, but fraud losses have also risen. With 95% of merchants supporting 3DS, it is the most common fraud mitigation tool, yet many still rely on version 1 despite its retirement deadline. Over half report user abandonment rates under 10%, balancing fraud prevention with user experience. Average gross and net CNP fraud losses are 27 and 20 basis points, respectively.

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