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Numbers: Top 10 Riskiest Places to Do E-commerce

Miami, not New York City, is the U.S. city with most online fraud, says new CyberSource study

By Sandy Kendall

January 30, 2008 — CSO — By Katherine Walsh

1/30/08 Miami and Nigeria are the riskiest e-commerce spots on the globe, according to a new study from electronic payment solutions provider CyberSource.

The city and country data is part the Ninth Annual CyberSource Fraud Survey, conducted in partnership with Mindwave Research, an IT market research firm. It asked 318 Canadian and U.S. e-commerce merchants which cities and countries they thought represented the highest risk of online fraud.
 
This year, Miami surpassed New York City, which topped last year’s list, with 10 percent of the vote for riskiest city. (New York had 8 percent of the vote.) Nigeria remained the highest risk country for e-commerce at 27 percent.

Russia, which has been named one of the riskiest countries in the past two surveys, fell out of the rankings this year. Doug Schwegman, CyberSource director of customer and market intelligence, said in a press release that the change could be due to merchants no longer shipping to Russia because of past negative outcomes.  

Additional results include:

4 Riskiest Cities:
1) Miami
2) New York City
3) Los Angeles
4) Chicago

6 Riskiest Countries:
1) Nigeria
2) United Kingdom
3) Ghana
4) Indonesia
5) (tie) China, Singapore

Staff Writer Katherine Walsh can be reached at kwalsh@cxo.com.

To learn more:

* How to Reduce Credit Card Fraud

* CSO cover story: Choke Point: In the struggle to prevent fraudsters from turning stolen credit cards into cash online--a $2.8 billion problem last year--retailers are the country’s last, best defense

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