News
News
1/31/2007
12:25 PM
Connect Directly
RSS
E-Mail
50%
50%

E-Retailers Rate Nigeria Fraud Central

But fraudsters will arrange to ship their products from other countries if merchants are denying orders to a particular ZIP code or region, expert says.

Nigeria leads the world as the country most likely to generate fraudulent online orders, a survey published Wednesday said. It's the third straight year the West African nation topped the chart.

CyberSource, an electronic payment provider, polled several hundred e-commerce companies for the survey. Nigeria easily led the list; 31% of those surveyed named it as the riskiest e-retailing country or the one more likely to produce orders with stolen or counterfeit credit cards.

Second was Russia; 9% voted it the most risky in 2006, up from 4% in 2005.

In the United States, New York led the voting with 9% naming it as the riskiest city. That was only half, however, of the 18% who pegged it as dangerous territory in 2005. Miami and Los Angeles came in second and third, respectively, with 7% and 6%.

"With the exception of Nigeria, which seems to own the risky category, what we're seeing is a spreading of the fraud risk both domestically and abroad," said Doug Schwegman, the director of market intelligence at CyberSource, in a statement. "Fraud is a mobile phenomenon, movable from one city or one country to the next. If perpetrators feel that their ship-to addresses are making them vulnerable, if merchants are denying orders to a particular zip code or region, fraudsters can arrange to have their products shipped to them through different intermediary locations."

Some of the steps e-merchants are taking, added Schwegman, include relying on geolocation tools to tell them where an Internet-connected computer, mobile device, or site visitor is, based on the IP address. In 2005, 25% of U.S. merchants used geolocation information; by the end of 2006, said Schwegman, that number had climbed to 35%.

Comment  | 
Print  | 
More Insights
The Business of Going Digital
The Business of Going Digital
Digital business isn't about changing code; it's about changing what legacy sales, distribution, customer service, and product groups do in the new digital age. It's about bringing big data analytics, mobile, social, marketing automation, cloud computing, and the app economy together to launch new products and services. We're seeing new titles in this digital revolution, new responsibilities, new business models, and major shifts in technology spending.
Register for InformationWeek Newsletters
White Papers
Current Issue
Flash Poll
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join InformationWeek’s Lorna Garey and Mike Healey, president of Yeoman Technology Group, an engineering and research firm focused on maximizing technology investments, to discuss the right way to go digital.
Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.