Digital systems are advancing rapidly to serve the consumer market. Customer experience determines brand’s value and success. Misplaced deliveries are a major concern, but online address verification service is mandatory to follow compliance procedures. Digital methods of address verification ensure the data’s credibility and efficient storage. Majorly e-commerce and online food industries face address verification issues. To validate address online, the implementation of AI models is significant. It reduces the chances of entering incomplete or flawed information.
Guardian reveals a 355 million euro loss of payment fraud in the UK. Poor customer service badly impacts the consumer market. Frequent cases of fake address deliveries increase financial crime. Regulatory authorities should take rigorous steps to verify address on digital lines.
What does “Address Verification System” mean?
The address verification process refers to validation of address-related information of customers before allowing them to perform financial transactions. Businesses mostly emphasize address verify procedures for fraud reduction and legitimacy verification of onboarding businesses. The process ensures reduction in chargebacks, which is a common complaint on e-commerce platforms.
Why is Verifying an Address a Security Prerequisite?
Business industries are interacting with various challenges. Verifying a business requires verification of the address for fraud mitigation. Financial security and data integrity are of paramount significance. If a business is not secure, criminals can easily hack the financial system. Various e-commerce portals raise fake address delivery reports, which not only endanger data safety but also financial security. The company’s reputation is also impacted in this way. The online address verification service helps to store original and updated data in database.
Enhanced Due Diligence
Enhanced Due Diligence is process that ensures verification of potential businesses and highlights the serious threats. These are normally difficult to detect using customer due diligence. EDD is applied to high-risk customers like Politically Exposed Persons (PEPs), money launderers, sanctioned individuals, etc. Automation is effective for conducting EDD over the high risk customers. The online address verification process helps to identify criminals who often use fake addresses for chargeback claims.
Use of Artificial Intelligence to Verify Address
AI-powered algorithms are efficient and effective for address verification. Machine learning is intelligently employing OCR and ICR techniques for the verification of address documents. There are various stages of the AI-enabled online address verification process.
Submission of Online ID Card
First step is identity verification process, where customer submits original ID card and photo proof. Original ID card is processed and matched with provided details.
Submission of the Address Document
In next step, an additional document is submitted to system for verification of address. AI models verify business/residential address. These documents are for verification of address details.
Verification and Results Dispatch
Data or results extracted from software undergo a series of checks. After verification, data is shared with customer or stored in database.
How Does Online Address Verification Control Fraud?
The digital process of address validation saves the original address details. If fake chargebacks are reported, the automated address verification process detects the point of error and returns the expected results. Once the database is updated with the original details of the business address or the customer address, AI-enabled software detects forgery attempts. E-commerce portals or the travel industry can implement a digital address verification process to overcome the wrong address entries and fake chargeback complaints.
Benefits of Online Address Verification Process
Reduction in Excessive Chargebacks
Process of address verification helps to reduce chargeback complaints that are normally experienced using fake address entries. Financial sectors can avoid serious fake address-based crimes. E-commerce is growing fastly and digital address validation can effectively help to detect and control illigit chargebacks. Unfair chargebacks cost company and eventually impacts revenue rate.
Data and Financial Security
Automated address verification is helpful for data security and smooth financing. Digital mechanisms help to streamline secure financial processing. Fake address entries cannot impact the financial system where advanced AI algorithms are installed. Businesses need data safety and financial protection for seamless financial progress. Furthermore, it helps to keep the criminals at bay.
Businesses rely on the address verification process for secure financial deals and a better customer experience. Regulatory bodies need to form more advanced address validation compliance methods to beat fraudulent actions. Digital address verification also helps to address the AML/CFT compliance mechanisms. It is the right time for the corporate sector and other financial institutions to take strong measures against fake address fraud before it’s too late.