In this paper we classify all blocks with defect group C2n×C2×C2 up to Morita equivalence. Together with a recent paper of Wu, Zhang and Zhou, this completes the classification of Morita equivalence classes of 2-blocks with abelian defect groups of rank at most 3. The classification holds for blocks over a suitable discrete valuation ring as well as for those over an algebraically closed field. The case considered in this paper is significant because it involves comparison of Morita equivalence classes between a group and a normal subgroup of index 2, so requires novel reduction techniques which we hope will be of wider interest. We note that this also completes the classification of blocks with abelian defect groups of order dividing 16 up to Morita equivalence. A consequence is that Broue's abelian defect group conjecture holds for all blocks mentioned above.