E-Retailers Rate Nigeria Fraud Central - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News
News
1/31/2007
12:25 PM
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%.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2020 State of DevOps Report
2020 State of DevOps Report
Download this report today to learn more about the key tools and technologies being utilized, and how organizations deal with the cultural and process changes that DevOps brings. The report also examines the barriers organizations face, as well as the rewards from DevOps including faster application delivery, higher quality products, and quicker recovery from errors in production.
Slideshows
Data Science: How the Pandemic Has Affected 10 Popular Jobs
Cynthia Harvey, Freelance Journalist, InformationWeek,  9/9/2020
Commentary
The Growing Security Priority for DevOps and Cloud Migration
Joao-Pierre S. Ruth, Senior Writer,  9/3/2020
Commentary
Dark Side of AI: How to Make Artificial Intelligence Trustworthy
Guest Commentary, Guest Commentary,  9/15/2020
Register for InformationWeek Newsletters
Video
Current Issue
IT Automation Transforms Network Management
In this special report we will examine the layers of automation and orchestration in IT operations, and how they can provide high availability and greater scale for modern applications and business demands.
White Papers
Slideshows
Twitter Feed
Sponsored 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.
Sponsored Video
Flash Poll