While 3DS (3-D Secure) can effectively combat third-party fraud, its main drawback lies in its inability to prevent first-party fraud, which accounts for the majority of merchants' chargebacks.
Friendly fraud typically occurs after the transaction is completed, rendering customer authentication prior to purchase ineffective against such fraudulent activities.
Although the 3DS authentication method provides valuable anti-fraud protection, it functions best as part of a comprehensive fraud and chargeback management strategy.
To enhance fraud prevention and mitigate risks, Latipay uses a range of complementary tools, including:
- Velocity limits
- CVV verification
- Address verification
- Geolocation checks
- Fraud filters
- AI machine learning
By augmenting these measures with fraud scoring, automated order declination becomes possible for those presenting substantial risks. This robustly fortifies your business's safeguards against fraud and chargebacks. Moreover, Latipay implements post-transaction AML (Anti-Money Laundering) logic for continuous monitoring of transactions, further bolstering security measures.