Technological transformations have forced businesses to shift their operations online. However, the shift has brought about various consequences including customer service not being up to the mark. As per Hubspot, industries lose $1.6 trillion daily on average because they lack customer service. Similarly, businesses lack authenticity services, for instance, identity and address verification. All these add up to the fall of businesses’ reliability, worth, and reputation.
Therefore, businesses require an automated solution to validate the addresses of customers. Online address verification services help industries not only comply with KYC regulations but also retain their worth. The e-commerce industry faces the most threats related to fake addresses. For instance, abandoned carts, identity theft, chargeback chances, fake orders, payment scams, and abandoned carts. This is why e-commerce, retail, and the rest of other industries need to verify addresses online so that they can minimize the chances of exposure to criminal intentions.
Industries Liable for Accurate Address Verification System
The majority of the industries that involve addresses for providing services should verify their customers. As authorities mandate, industries cannot leave the verification of address unattended. Below are the industries that can mitigate identity fraud and prevent criminal threats by using automated services.
Financial and Banking Sector
Banks and other financial institutions validate addresses to ensure they are dealing with legit clients, making accurate financial deliveries, and making sure they are complying with the set standards. For risk assessment and customer verification, finance institutions collect required identity information in the form digitally presented on screens. After the submission, the system uses OCR technology and extracts the required information. This way, financial institutions can ensure that the legit customer is there in the real world and behind the screen.
Criminals use fake addresses and identities to apply for govt-based benefits. However, by using authentic services financial institutions can not only restrict criminals but also counter money laundering, terrorist financing, and other financial crimes.
The E-commerce industry loses a hefty amount of money every year to chargebacks, address fraud, abandoned carts, and failed deliveries. However, online address verification can serve as an additional layer to the verification operations as they verify customers’ existence in real-time. Through these services, online service providers can validate credit card details and billing addresses.
Utility and Retail Sector
Utility businesses largely rely on transactions and payment methods. Here, false and forged addresses lead to increased chances of zero payments. This scenario affects the industries’ worth, reliability, and reputation. Moreover, this will increase customers’ dropouts. Therefore, the utility and retail sectors need to verify addresses alongside validating the identities of customers. Not just this, industries can also analyze payments while locating the whereabouts of clients.
Benefits of Online Verification of Address
Online address verification possesses and provides several benefits to the majority of industries. Common plus points are enlisted below.
Ensures Regulatory Compliance
Due to an increase in the number of frauds, global economies are on the verge of losing millions and billions. However, by verifying addresses, they can detect the risks customers may possess and prevent criminals in time from exploiting legitimate benefits. This way, businesses can also ensure KYC/AML regulatory compliance. The authorities have obliged sectors to verify customers’ identities as well as addresses to minimize the chances of financial and reputational loss. Moreover, industries can combat information manipulation threats, data breaches, identity thefts, and financial losses.
Moving on, the US is considered to be the largest Hubspot for gaming, e-commerce, and retail. Therefore, the authorities mandate the providers to validate the address of customers before they are permanently registered. Likewise, banks and financial institutions should conduct address checks before opening accounts, and accepting loan applications, and insurance requests. Failure in compliance will cost industries hefty fines and in some cases complete bans.
Industries including banking and finance, e-commerce, retail, and others need online address verification to make sure they are not onboarding any potential criminal or risk-possessed entity. Therefore, businesses need address verification to ensure customers are what they claim to be.
Online address verification solutions are enabling businesses like e-commerce, retail, healthcare, and finance to verify customers in real time using AI and ML-driven services. Digital address verification help speeds up the process and provides accurate results. Moreover, as regulations mandate, industries are required to validate the address of a customer during registration. This way businesses not only onboard and assist legit customers but also ensure KYC compliance.
Steven Barron is an expert in many fields like tech, education, travel, finance, games, cars, and sports. He started his career in the tech industry, where he learned a lot and got good at spotting tech trends. Steven then moved into writing. He loves technology and is great at telling stories. His articles cover topics like new gadgets, education, and finance. They are full of detail but easy to read. Steven loves to travel and is a big sports fan. This shows in his travel and sports writing, where he draws in readers with clear descriptions and smart insights.