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US, Nigeria, Ghana top online fraud list

March 17, 2011 • Security, Top Stories

Nigeria, Ghana & United States rated highest in online fraud (Image: wylio.com)

Nigeria, Ghana and the United States were the top online fraud perpetrators in attacking United Kingdom merchants, payment company CyberSource reported. They also added that fraud levels are at new high levels and have forced many orders from the three countries to be turned down by British enterprises.

The analysis of some 200 companies revealed that 55 percent of all UK companies refused to ship to Nigeria, 34 percent to Ghana and a shocking 25 percent to the United States.

The average fraud rate, the company said, was now 1.6 percent of orders, down from 1.8 percent in 2009, with digital retailers suffering the highest rates overall. Rejection rates for online sales are now 5 percent.

Even digital downloads were not being sent, with nearly half of all UK companies saying they would not do business with those located in Nigeria.

“The absence of physical products creates a different eCommerce environment for digital goods merchants and as a result, they experience their own set of fraud management challenges,” said report co-author, CyberSource’s Akif Khan.

“Their geographically diverse customer base requires the adoption of more sophisticated tools, like device fingerprinting, to help identify instances of cleaner fraud; ultimately detecting more fraud, first time,” he said.

By Jonathan Terry


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