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New York, Nigeria named riskiest areas for eCommerce.(headline)(Brief Article)

Business Credit

| February 01, 2005 | COPYRIGHT 2005 National Association of Credit Management. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

In a survey undertaken by CyberSource Corporation, eCommerce merchants named New York the riskiest North American metro area for eCommerce. Nigeria was chosen as riskiest country. By "riskiest", merchants mean that orders from these areas are most likely to be fraudulent.

"Highest risk" areas for eCommerce:

 
U.S./Canadian Cities 
 
NYC                  26% of mentions 
Miami                10% 
Los Angeles           9% 
Chicago, Detroit      3% 
SF Bay Area           2% 
 
Countries 
 
Nigeria              31% of mentions 
Indonesia             8% 
Russia                6% 
China                 5% 
UK, Afghanistan       4% 

Residents of cities like New York, Miami and other cited centers of fraud may ultimately pay a price for their area's reputation. Online merchants can require purchasers in certain "hot zones" to take more elaborate steps for identification, such as asking the purchaser to make a telephone call to verify the order. Some merchants routinely flag orders from high fraud areas for manual (therefore slower) processing. In extreme cases, the order could even be rejected.

"Few merchants will publicly ...

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