Regulating address verification across potential industries is crucial for fortifying compliance measures. According to a 2022 study, credit card verification services, used by 55% of online merchants globally, are the most common fraud detection tool. Identity validation and verification services rank second, utilized by 50% of e-merchants, while two-factor telephone authentication is employed by 44%. These statistics highlight the importance of robust verification systems in preventing fraud and ensuring compliance.
What is Address Verification?
Address verification is the authentication protocol that is conducted by acquiring the residential locations and then comparing them against authorized databases. These databases store user’s criminal records with authentic results. After scrutinization, the authentic ones get access to their acquired services. Meanwhile, imposters are reported to the legal departments for taking strict actions or simply blocking their accounts from the website. Address verification has diverse roles in maintaining the reliability of the system. For example, in the e-commerce industry, the employment of address verification ensures that the user’s billing address matches the details of their banking account resident. The authorized databases hold information on specific geographical locations associated with customers. In extreme cases, identity verification checks are executed for the complete validation of the identity.
How Address Verification is Executed in Potential Industries?
Address verification has its potential role in diverse industries in an advanced way. Different enterprises demand diverse roles by integrating address verification protocols into their systems. The execution details in some of the potential industries are given below:
Address verification for Financial Services
Address verification plays an important role in streamlining the financial industries. In banking institutions, address verification is conducted before opening a digital financial account. The provided residence location is scrutinized against authorized databases, which contain a detailed residence location of each citizen. Sometimes, a digital code is sent in a letter form to the mentioned address to verify the user’s identity. It assists in combating the major risks of money laundering and terror funding. Throughout the whole verification process, the provided information is protected securely to protect the customer’s privacy. It also assists in complying with the regulatory measures of the defined compliance regarding address verification.
Address verification in E-Commerce
Address verification for ecommerce sector ensures that the provided billing details are matching with the actual residence location of the customers. The integration of address verification protocol in e-commerce sectors combats the potential risks of order cancellation, which ultimately becomes the cause of money losses and mitigates the integrity of the overall system operations. The authentication procedure increases the conversion rate because of the on-time delivery and makes customers’ experiences more convenient, which contributes to generating more leads.
Address verification In Fintech
Address verification in the fintech industry is conducted by leveraging digital technology and the other associated authentication protocols, which validate identities in real-time. Automated systems verify customers’ proof of address documents through OCR (Optical Character Recognition) technology. Geolocation authentication in digital onboarding makes the customer experience more convenient.
Address verification for Medical Billing
Medical billing companies collaborate with third-party verification authorities to validate their identities in real time. It is mainly conducted to find if the authentic patient has applied for free medical services. Fake entities deceive the system during digital registration by presenting themselves as who they are not. Therefore, address verification plays an essential role in maintaining the reliability of the hospital and other healthcare sectors. The address authentication protocol ensures that all the authentic patients are getting treatment. In this way, the reliability of the healthcare sector is enhanced.
The Contribution of Address Verification in Streamlining Operations
Address verification protocols streamline the major operations of diverse industries by reporting fake entities to the legal departments. The identification of imposters while conducting address verification methods helps in combating the major identity impersonation fraud which affect the overall productivity of the whole system. The maintenance of integrity can only be ensured by validating partners and identities before giving services. In this way, the current location details are documented as a zone so that they can get caught easily if found to be involved in illegalities.
The Bottom Line
Address verification is becoming the most demanded validation method in this digital world. The employment of their services has contributed well to ensuring compliance measures in the system. Complying with the legislation helps in fortifying the fraudulent activities majorly associated with data breaches and identity impersonation. Therefore, it is encouraging to implement the residence verification of the onboarded customers in minimal time so that imposters can be detected.
