1/29/08

Merchants cite Miami as riskiest city for e-commerce in new survey

Miami bumps New York from the top of the list as the U.S. city presenting the greatest risk of fraud in e-commerce in CyberSource’s Ninth Annual Fraud Survey of merchants.

Paul Demery , Managing Editor, B2B E-commerce

Miami is now viewed as the riskiest city for e-commerce in the U.S., according to a new survey by online payment security services vendor CyberSource Corp. Miami bumped New York from the top spot this year in the annual survey by garnering the largest number of mentions from 318 survey respondents, all merchants.

While no city received a majority of the votes, Miami and New York topped a list of several U.S cities cited by merchants as the riskiest for e-commerce. Miami received 10% of citations as the riskiest city, up from 7% in the year-ago survey; while New York received 8% of mentions, down from 9% a year ago. Other cities citied as having the highest risk for online fraud were Los Angeles, Chicago, Detroit, Atlanta, Washington, DC, and San Francisco.

Nigeria as in previous surveys topped the list of countries presenting the greatest risk of online fraud, receiving 27% of mentions, down from 31% in last year’s survey. Nigeria was followed by the United Kingdom, cited as having the highest risk by 8% of responding merchants, up from 6% last year. Ghana, Indonesia and China also were cited as risky.

Doug Schwegman, CyberSource director of customer and market intelligence, notes that in this year’s survey Russia dropped off the list of cities deemed riskiest for e-commerce, possibly indicating that merchants have given up shipping even digital products to that country due to past negative outcomes. “But the real message of these findings is that fraud remains a significant issue in the lives of e-commerce merchants,” he says.

Schwegman says that other survey findings showed the increased popularity of IP geolocation as an anti-fraud measure. “But as always, we remind merchants that no one tool is a silver anti-fraud bullet. Combinations of tools work best to root out cybercrime,” he adds.

The data were from the Ninth Annual CyberSource Fraud Survey conducted for CyberSource by Mindware Research. Fielded Sept. 13 through Oct. 1, 2007, the survey was conducted among U.S. and Canadian e-commerce merchants.

Topics:

business, business finance, CyberSource, fraud, Miami

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