Stripe Analysis: Mandatory 3DS Reduces Fraud in APAC and Europe, While Iberia Sees the Only Increase

Stripe's analysis of transaction data from 2022 to 2025 shows a distinct gap in card fraud rates between regions with mandatory 3D Secure(3DS) implementation and those without. The Asia-Pacific(APAC) region saw a significant decrease in fraud rates due to 3DS mandate policies, while Latin America maintained the highest fraud rates among Stripe's analyzed regions since January 2022.

Decrease in Fraud Rates in APAC and Europe

The reduction in fraud rates in the APAC region is closely linked to 3DS mandate policies for online card transactions. Malaysia saw a 74% decrease in fraud rates between 2022 and 2025 due to the central bank's strict 3DS policies (app-based authentication, immediate account freezing, etc.). Japan also demonstrated effectiveness, with dispute rates dropping more than 30% year-over-year following the implementation of the 3DS mandate in April 2025.

In Europe, the enforcement of Strong Customer Authentication(SCA) regulations led to an average 21% reduction in fraud rates. France saw a 40% lower fraud rate due to the early adoption of chip-and-PIN, which normalized two-factor authentication, while the UK saw a 27% decrease.

Structural Vulnerabilities in Iberia and Latin America

In contrast, Iberia(Spain, Portugal) was the only region in Europe where fraud rates increased annually between 2022 and 2025. This is attributed to an excessive reliance on OTP(one-time passwords) instead of biometrics or app-based verification, making it vulnerable to phishing attacks.

Latin America showed fraud rates 160% higher than EMEA and 151% higher than APAC as of 2025. Structural factors cited for maintaining these high fraud rates include a lack of training data due to the high proportion of cash economies, dispute frameworks favorable to cardholders, and inconsistencies in standards across countries.

Stripe's Response and Technical Impact

Stripe expanded its AI-powered fraud prevention product, Stripe Radar, to cover all payment volumes, including bank debits and stablecoins. Stripe's AI-optimized 3DS authentication resulted in an average conversion rate increase of 1.20% and a reduction in overall transaction fraud of 7.67%.