The number of financial frauds and chargebacks is increasing globally and in the USA. So, financial organizations and businesses in all industries practice robust and efficient address verification solutions. This provides a better customer experience and decreases monetary fraud in 2021.
Digital platforms and other eCommerce websites are employing identity verification mechanisms. Thus, it makes sure they interact with only legitimate users. Address verification is a way they are using for ensuring the onboarding of legitimate users.
Practicing verification measures at the time of registration can save businesses from experiencing fraudulent activities. So, there is a dire need to have an address verification solution to prevent such frauds. Taking help from a software development firm possessing experience in enabling the finance and banking sector can solve this problem.
What is address verification?
The process of address verification helps validate the addresses of people before they perform any financial transactions. This is an effective way to decrease monetary frauds and chargebacks. Internationally, address validation is gaining popularity over time because this is the best strategy against transactional crimes and chargebacks.
Address verification is a simple procedure comprising three steps. Firstly, customers are asked to upload a picture-holding identity document. The photo of the user is matched against the identity document. After that, a secondary document containing the address is needed to submit.
State-of-the-art optical character recognition extracts information from documents. Then, this information is sent for authentication. The results of address validation are then displayed to the customers.
Documents necessary for address validation
This is an important question that which documents can be used to perform address verification. The answer is you can use government-issued identity documents. For example, ID cards, passports, driving licenses, utility bills, bank statements, and insurance agreements, etc.
All of these documents are verified by checking their information. The name, address, date of issuance, and date of expiry are specially checked. Document verification solutions also make sure that the document is not out of its expiry date.
These solutions check for forgery attempts and photoshopped documents. Also, the corners of documents are verified to make sure there are no signs of fake documents. These verifications greatly help in preventing fraudulent transactions.
Best advantages of address verification during 2021
Since the birth of the digital revolution of businesses, online frauds have also risen. This stimulated a necessity to have certain address verification solutions that have the potential to cut down scams. Address authentication does the same for digital enterprises worldwide and in the United States.
Let’s dig a little deeper into the benefits of address verification for the digital landscape through 2021.
- Limits products returns
- Reduces chargebacks
- Compliance with FATF
To have a more thorough study on document checks, we consider these important reasons now.
Limits products returns
Nowadays, products returns are one of the main reasons for business loss. Without valid address verification solutions, you are likely to encounter this issue repeatedly. Businesses that are involved in delivering products are susceptible to returned shipments. Therefore, they require to practice effective measures to control these scams.
Payment disputes also known as chargebacks are mounting universally and in the US. These occur when the cardholders request refunds because they claim that they did not make the purchase. Friendly fraud happens when the fraudster uses stolen documents and fake addresses to make purchases online.
This causes the companies and startups to face huge financial losses. Because they have sold their products to scammers. But, now they have to return the payments to the cardholders as well.
The ratio of chargeback crimes is increasing with each passing year. This is the reason why a business needs document verification using proper address validation today. Together with decreasing crimes, address authentication solutions also save the reputation of businesses.
Compliance with FATF
According to FATF, all businesses are liable to follow certain identity verification processes. Also, these can effectively help them in deterring financial fraud. They can enable them to provide a better customer experience as well.
International financial transparency standards make address verification compulsory for companies across the world. So that no fraudster can get away easily while spoofing the system. You can control almost all kinds of economic fraud by practicing address validation solutions.
Top industries using address verification solutions
These are the leading sectors that are utilizing address validation for secure transactions.
- Financial institutions
Next, we briefly discuss these industries that are making use of address authentication for safe financial dealings.
The E-commerce industry faces a lot of loss in revenue every year due to chargebacks and returned shipments. Fraudsters provide fake addresses to deliver products and it is nearly impossible to catch them. Therefore, businesses need to practice robust address validation systems to deter scams that can happen due to wrong information.
All financial companies require to practice address verification solutions to make sure that all the customers exist in reality. Fraudsters create fake identities by stealing data. Consequently, they can use that data to commit crimes like money laundering and account takeover.
Today, many frauds are happening across the world. Because scammers use fake addresses to make fraudulent transactions. Employ reliable address verification solutions to combat these deceptions.
Do you need to craft a robust financial solution? Techliance can join hands to create a secure monetary system for you. Together we can make your digital business safer now.