×

Subscribe

May 01, 2024 409

43% of eCommerce Execs Say Two-Factor Authentication Can Mitigate Fraud

#Fintech

A new US report titled "Fraud Management in Online Transactions" reveals just how effective 2FA protection can be.

Ensuring smooth cross-border transactions while safeguarding against fraud is crucial for eCommerce merchants operating in international markets. However, finding fraud prevention tools that effectively combat cyber threats without hindering customer transactions remains a challenge. PYMNTS Intelligence's collaboration with Nuvei revealed that a staggering 82% of U.S. eCommerce merchants with international sales experienced cyber or data breaches last year, resulting in lost customers and revenue for nearly half of them. Balancing security needs with customer satisfaction has proven difficult for 68% of eCommerce merchants, prompting 95% of them to enhance their anti-fraud capabilities.

In analyzing popular fraud prevention tools in "Fraud Management in Online Transactions," PYMNTS Intelligence found that two-factor authentication (2FA) emerged as the most effective method, with per-transaction 2FA yielding the best results. While both per-transaction and at-login 2FA options exist, per-transaction 2FA was deemed more effective by 43% of merchants surveyed. Notably, per-transaction 2FA not only enhances fraud prevention but also minimizes failed transactions, with a remarkably low failed payments rate of just 10.3%.

Despite its proven effectiveness, only 53% of merchants currently utilize per-transaction 2FA, highlighting a significant opportunity for eCommerce businesses to bolster security measures and improve customer satisfaction. With per-transaction 2FA demonstrating its value in reducing fraud and optimizing transaction success rates, merchants should consider adopting this approach to enhance their fraud prevention efforts and streamline cross-border transactions.