Boosting e-commerce security and conversions on Black Friday with 3DS

Payments Banking Security
Black Friday and Cyber Monday (BFCM) are two of the biggest retail opportunities of the year, generating a massive influx of online shopping traffic and revenue for merchants and issuers alike. 

But along with these opportunities, it also opens up the playing field for additional fraud. Fraudsters undeniably ramp up targeted attacks over this epic shopping period, enticing consumers with not-to-be-missed discounts and urgent order updates.

Since every $1 of card-not-present (CNP) fraud in 2022 cost e-commerce merchants on average $3.75, the cost during this retail splurge means banks must do everything they can to ensure safe, seamless online payments for their customers.

Ramping up e-commerce security

According to the National Retail Federation, the number of Thanksgiving weekend shoppers reached nearly 180 million in 2021. With all these consumers on the hunt for a great deal, fraudsters are ready with their latest cyberattack vectors. And this highlights the need for continual innovation in financial services to simplify and secure the purchase journey for consumers.

One way financial institutions (FIs) can turn this situation around is by educating consumers and their employees about common cyberattacks. Together with an advanced authentication solution — one that balances secure transactions with a frictionless user experience — FIs can ensure their customers enjoy hassle-free online shopping.

Most common financial fraud attacks

According to a recent NuData report, there was a 22% year-over-year increase in e-commerce attack traffic in 2021. What’s more, these attacks are becoming more sophisticated. Let’s take a look at some of the more common attacks:  


A false email notification from a supposed retailer or a logistic company (that often even looks like their branding and email address) is common over this period. The gist of the message is that the customer’s package is delayed or there’s a problem with their order.

One reason this type of attack is particularly effective over BFCM is that consumers are already expecting email or text updates on their orders and shipping, plus more advertising and marketing communication in general. And that makes discount-hungry customers more likely to click on something suspect offering them an additional “50% off”.

Social engineering

Fraudsters pose as a bank employee and convince consumers to participate in a security check (usually a challenge message). The communication would likely focus on BFCM purchases or payment errors to hook their victims. Once the person actions the request or shares their OTP, the fraudsters can access their bank account!

Fight the fraud with our handy infographic! Learn more about financial fraud attacks and how to prevent them. Get your copy here.


Chargeback fraud is when fraudsters buy goods online using stolen credit card details. Once they receive the goods, they apply for a refund. Though consumers do use this method to get their money back for undelivered or damaged goods, fraudsters take full advantage of the barrage of BFCM transactions to ramp up chargeback fraud.

Triangulation fraud

When fraudsters create fake websites where they advertise discounted goods. Then when consumers place orders on the site, their credit card details are captured. At that stage, the fraudster purchases and ships the goods to the victim and retains their credit card details for future use.

Reducing the high cost of false card declines

Fraud is also not the only challenge facing merchants and FSPs during this retail bonanza. With customers laser-focused on clinching that big bargain during BFCM shopping, issuers cannot afford the high cost of false card declines that hinder the customer’s purchase journey. These false declines occur when a credit card purchase is incorrectly declined — leaving frustrated customers, high cart abandonment rates, customer attrition, and loss of revenue in its wake.

It's no wonder that 45% of merchants consider payment success rate their most important KPI, and even more so over this busy retail period. Which makes the need for FIs to reduce the number of false declines while preventing true fraud attempts even more pressing.

Luckily, the advances in payment security standards, such as the shift from 3D Secure version 1 to EMV 3D Secure, have helped to pave the way to frictionless payment authentication. The earlier standard, 3DS 1, was created in 2000 and recently sunsetted as it was no longer fit for purpose. Version 2.0, or EMV 3D Secure, gives banks access to more contextual data, enabling safer, smoother checkouts.

Increasing conversions and revenue with seamless payment authentication

Along with reducing false card declines, modern payment authentication solutions should also be adaptable to the user journey of each customer. By offering differentiated customer experiences based on additional context, transaction data is more secure and cardholders don’t get bogged down with disruptive and unfamiliar looking authentication mechanisms.

One-size-fits-all authentication is out. Context Aware™ Authentication is in. Learn more.

Authentication can even happen silently without interrupting the customer’s online transaction. In this case, risk-based authentication (RBA) helps issuers access the risk associated with each transaction, and the cardholder is only required to verify their identity when the transaction is assessed as high-risk. As a result, there’s less friction for customers as they secure a last-minute Black Friday bargain. And in turn merchants and issuers gain higher conversions, and customer satisfaction rates — and more revenue.

Ultimately, authentication solutions should integrate seamlessly across all digital channels. That enables customer data and additional context to be shared seamlessly for silent, secure authentication. And the customer doesn’t need to take any more steps to authenticate themselves— even if it’s an active authentication mechanism (based on a higher-risk transaction), the user experience will be the same.

However, fraud is never eliminated with standalone authentication solutions. According to the Global Fraud Report 2022, merchants use an average of four tools to prevent payment fraud. Entersekt’s all-in-one platform covers all digital and payment channels for safe, seamless e-commerce transactions.

Protect your customers with Entersekt’s risk-aware 3D Secure ACS and pre-integrated authentication

Banks need to identify unusual activity, behavior, or patterns in digital transactions in real-time, especially over BFCM when threats are at an all-time high.

Entersekt’s 3D Secure ACS provides secure, frictionless authentication across all channels throughout the checkout process. Our world-class payment authentication solutions are customizable, always 100% up to date, and compliant with EMVCo requirements and strong customer authentication (SCA) practices.

Our 3D Secure customers also achieve success rates of over 90% with our pre-integrated AI-powered risk-based authentication. With the biggest annual e-commerce events approaching fast, it’s important that your ACS is up-to-date and compliant with the latest specifications.

Contact our team of specialists today to ensure your customers enjoy a secure, frictionless Black Friday shopping spree.