Why Online Address Verification Has Become A Necessity For Industries?

Technological transformations have forced businesses to shift their operations online. However, the shift has brought about various consequences including the customer service not being up to the mark. As per Hubspot, industries lose $1.6 trillion daily on average because they lack customer services. 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 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.

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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 the 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.

E-commerce Industry

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 verifying address 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 the 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 risk 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, gambling, 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, accepting loan applications, and insurance requests. Failure in compliance will cost industries hefty fines and in some cases complete ban.

Risk Prevention

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.

Concluding Remarks

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. The digital address verification help speeds up the process and provides accurate results. Moreover, as regulations mandate, industries are required to validate address of a customer during registration. This way businesses not only onboard and assist legit customers but also ensure KYC compliance.

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