Weblog on the Internet and public policy, journalism, virtual community, and more from David Brake, a Canadian academic, consultant and journalist

Archive forNovember 30th, 2003 | back to home

30 November 2003

Mark Davies, the founder of BusyInternet, Ghana’s biggest cybercafe, told the BBC World Service’s latest “Go Digital”:http://www.bbc.co.uk/newsa/n5ctrl/progs/03/go_digital/24nov.ram programme that Yahoo had threatened to block all purchases to “Yahoo-hosted stores”:http://smallbusiness.yahoo.com/index.php from Ghanaian or Nigerian addresses because of the widespread fraudulent use of credit cards from his cafe. To try to head off this problem, he simply blocked all shopping. It’s extraordinary that a major portal like Yahoo could consider redlining entire nations, and that the “solution” should be for a cybercafe to block all ecommerce – particularly in a country where cybercafes may represent the only accessible Internet connection with the outside world.

A search turned up an article in “Balancing Act”:http://www.balancingact-africa.com/news/back/balancing-act_158.html from May this year with much more detail. According to the Yahoo security consultant:

The point is, 99.999% of purchases from Ghana are fraud. At least 99% of Yahoo stores don’t ship internationally anyway. Our fraud orders are up literally about 1000 percent over last year, almost all from Ghana. The cost to us in time and effort has reached the breaking point.

While it is certainly understandable why the move was threatened, imagine the furore if Yahoo had unilaterally threatened to block, say, all ecommerce from Portugal. This reveals how much unaccountable power these organizations have.