Why You Should Be Wary of Orders From Indonesia
Fraudulent orders are a concern for all online retailers, and for good reason. According to a study from LexisNexis, annual fraud costs reached $32 billion in 2014, a 38 percent increase over 2013. In addition, preventing fraudulent orders has gotten more expensive for retailers, costing $3.08 per every dollar lost to fraud last year, up from $2.79 in 2013.
With this in mind, online retailers need to be on the lookout for instances and patterns of fraudulent purchases. A recent report from Forter, a fraud prevention solution provider, can help them do that. Here are some of the interesting findings from the report, which analyzed over a million e-commerce transactions over the course of a full calendar year (2014):
- The five countries with the highest percentage of fraudulent orders were (in order) Indonesia, Venezuela, South Africa, Brazil, Romania.
- The fraud rate in Africa is as much as 10 times higher than the world average fraud rate.
- Fraud rates are more than twice as high for purchases from Android mobile devices compared to purchases from iOS devices.
- The five countries with the lowest percentage of fraudulent orders were (in order) Denmark, New Zealand, Finland, Norway, Switzerland.