Technological advancements bring many changes in our life. In the modern era, where everything seems to shift towards online platforms, digital services have rapidly increased in the last few years. In the last few years especially during COVID-19, online users increased exponentially. The increase in online customers also gives a way to cybercriminals to commit fraud. Besides ID frauds, some frauds are also committed due to the wrong addresses given on the fake documents.
The increase in chargeback frauds compelled firms to take strict precautionary measures to verify their customers. According to the FTC, 2.2 million fraud complaints were reported in 2020. Due to substandard customer services and insecure KYC processes, businesses lost billions from their revenue. Fake document frauds compromised wrong addresses that cost over shipping charges to home delivery providers due to the deficiency of a proper address verification system. Online businesses that provide home delivery services need a proper address verification system to avoid chargebacks. Let’s have a look at how the address verifier confirms the identity of the customers.
Online Address Verification Solution
It confirms the address of the customer before performing the transaction to avoid chargebacks. Address verification system ensures that the customer is legitimate to do a transaction. It provides digital businesses a secure platform to deliver the products at the proper address to reduce shipping costs. Online address validation facilitates online stores to carry out risk-free operations by confirming the true location of the customer. The verification of the address can be done in three simple steps. Let’s discuss how the address verification system works.
How Does Online Address Verification System Work?
Step I
To verify the address, the customer uploads an image of the ID document with a selfie. The AI-enabled system matches the document’s photo with a live selfie via a face recognition system and sends the result to the back office.
Step II
In this step, the end-user uploads a secondary document in which a business/residential address is present. The automated system extracts required data through OCR technology and matches it with the ID document to confirm the address.
Step III
After analyzing the address of the user through various checks, the result is displayed in real-time with proof of verification.
The document given by the customer for address authentication should include the full name and not older than three months. It should be a valid document that is visible easily and not photoshopped.
Documents Used for Address Verification?
The documents that the system used to confirm the address are:
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ID cards
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Passports
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Employer letters
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Envelopes
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Driving license
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Insurance agreements
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CPR smart
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Utility bills
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Bank statement
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Rent agreement
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Tax bills
The AI-powered system verifies thousands of document types in multiple languages to serve globally. The address verifier performs various authenticity checks before authenticating the document to verify the address.
How Online Address Verification Helps Businesses to Avoid Chargebacks?
Fraud Prevention
Sometimes fraudsters buy an online product and after using it for one or two months, they claim a chargeback, professing that they did not receive the product. Address plays an essential role to carry out an online transaction. For online gaming and e-commerce platforms, address is one of the necessary requirements for AML/KYC regulations. In this way, online address verification facilitates businesses to comply with security regulations to prevent fraud.
Enhance Customer Experience
The chargeback frauds increased by 41% after every two years and online businesses lose billions every year. Online address verification helps businesses to keep the latest record of their customers to verify their addresses. It helps them to reduce the number of returned shipments and delivers the product to the actual address that enhances customer experience.
Conclusion
Online address verification solution uses advanced technology to confirm the identity of the customers using thorough checks to ensure the authenticity of the document authentication. It is one of the quickest remote solutions that confirms the address of the customers within seconds. It also helps different industries such as online ticketing systems, online banking, e-commerce platforms, and many other online businesses to avoid massive chargebacks.
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