As the pandemic hit the globe, it changed the way for companies to conduct business operations. Many sectors lost huge amounts of money during this period such as the finance industry due to the increasing number of identity and address frauds. Chargebacks and all other relevant scams have made it difficult for firms to execute a secure customer onboarding process.
To mitigate this menace, online address verification services need to be implied for reducing the number of criminal activities and returned shipments. This will help in validating a client and ensure that the address which they are entering is legitimate. All transactions will be safely conducted while saving the company from facing any illegal scenarios. Checking that a particular address actually exists is important since it allows the company to check the authenticity of the client more precisely.
How can Clients get Verified Thorugh an Online Address Verification System?
Address verification services go through a process that helps to validate addresses designated to a client while confirming that an address actually exists and is authentic. Businesses can ask their clients to undergo a certain amount of steps to get them verified and onboarded securely. These primary steps are:
- Upload ID Information: In this first step, the user is asked to upload their ID document in a form of an image mainly consisting of some basic information about their name, age, date of birth, address, etc.
- Facial Recognition: The user can also hold the identity document in front of the camera while it captures their face and scans the ID document. The system then matches the user’s face with the picture posted on the scanned document, attaining a facial proof of the user.
- Submitting a Secondary Document: To verify address and identity of a user, they are required to submit a secondary document consisting of their residential or business address to cross-match the details in both the files. Any doubtful motive of the client can get detected before the results if finalized.
- Verification Results: After the software analyzes the data, the results are displayed in front of the end-user and stored in the client’s back-office using an API call.
What is the Significance of the Address Verification Systems in Businesses?
To verify address, the user will be onboarded safely without any risks of fraud. Verifying an address of an individual can provide numerous benefits to the businesses while protecting them financially as well as reputationally in the global market. The upsurging number of identity and address scams has led to increasing demand for verifying addresses to run businesses smoothly. The important factors about why businesses should establish an address verification system are as follows:
Prevention of Fraud
The primary reason to adopt the process of verification of address is to prevent the increasing number of frauds. Misplaced deliveries are creating massive problems for every sector, causing them a huge financial loss and disrupting their reputation in the market. Banks can also not escape from this situation as imposters prepare forged documents to open an account through which they can conduct illicit crimes. If the businesses avoid the process to address verify their clients, they might never know are customers actually who they claim to be or not.
Less Returned Shipments
By executing an address verification system, firms could reduce the number of returned shipments benefiting them by saving the cost and time of delivering them again at the right location. Fraudsters have devised a loophole in which once they receive a parcel, they either send it back depicting that they have delivered a wrong parcel or intentionally damage the product to ask the company for a refund. These illicit tactics have contributed to the upsurge of chargeback frauds and returned shipments.
Uplifting the Customer Experience
Since customers are the assets of a company, every business wants to provide a secure customer experience to them. Delivering the products to the wrong doorstep can affect a customer’s expectations in a negative aspect. Enforcing the process of verification of address can enhance customer satisfaction as the system will consist of the updated information about an individual’s address and due to its automated feature, the risks of mistyping the address will also get eliminated while ensuring the delivery of the product at the right place in the expected time.
Wrapping it Up
As businesses are inclining towards advanced solutions to combat fraudulent activities and reduce the number of returned shipments, the fraudsters are not remaining behind as they are devising illicit loopholes to fulfill their malicious crimes. Misplaced deliveries can create problems for the companies since they can cause them hefty financial losses and irreplaceable reputational damage. To protect them from these kinds of failures and enhance the customer expectation, an address verification system needs to be implied immediately.