In the digital age, it has become very easy for cybercriminals to exploit people through chargeback fraud. Organizations want to safeguard their financial resources because misplaced deliveries incur a lot of financial costs to the organization. According to the Shufti Pro funding statistics, companies have lost around $20 billion due to chargeback fraud. The online stores and other businesses have opted for the latest verification methods so that only genuine clients can have access to the services of the companies. The address verification method will facilitate digital stores in combating chargeback fraud effectively.
Address Verification Service – Explain the Address Verification System
It is an address authentication service that validates the address-oriented data of the clients before any real transaction happens between the clients. This validation mechanism plays a critical in attracting only genuine clients to the organization. The system facilitates the companies in reducing any kind of fraud attempts from professional hackers.
Online Address Verification – What Documents are Compulsory for it?
There are certain requirements for the address verification system to work properly. For instance, the given documents must not exceed the time limit of three months. If any client tries to submit older documents, the system will immediately reject their application and send a notification to the consumer about the issue. When a client submits the documents within the given time frame, the software will proceed with the address validation process. The system demands various documents for completing the verification procedure. They are as follows:
- ID cards
- Passports
- Driving Licenses
- Utility Bills
- Employee Letter
The afore-mentioned documents play an important role as evidence of address and they must be updated regularly. After the submission of the documents, the advanced OCR software will capture the data from the documents and save it in the database of the company accurately. The OCR system captures information like the name, address, issuance, and expiry date of the documents.
The software also checks the documents against multiple checkmarks e.g. natural wear and tear in the documents. It is important because they impact the authenticity of the records. The system is well integrated with artificial intelligence and machine learning algorithms which enables it to scan multiple types of documents in diverse languages.
Validate Address: What are the Top Benefits of the Address Verification Service?
Effective Fraud Interception
These days every business owner is worried about this issue. Fraud prevention is critical so that every business can protect its system from bad actors. The rising cases of fraud have increased with the passage of time. It is a critical reason that all businesses must implement online address verification solutions. Following are some major reasons that can motivate organizations to apply the system in the company.
There are multiple cases where fraudsters have given incorrect address information in order to deceive the organization and claim a refund later on. The application of an address verification solution will discourage such attempts from cybercriminals. Financial institutions can benefit from the service to prevent other digital crimes like identity theft and money laundering.
Positive Client Experience
The use of an address verification service will help clients in solving one more issue. It is the problem of missed deliveries that is greatly perplexing for companies these days. According to Shufti Pro News, clients lose billions of dollars in this way because their customers do not get their products at the correct address and at the correct time. Online address verification service will help in reducing the financial cost linked with rectifying the issues. The improvement of the problem sends a message of responsibility and care to the users as they think that the company cares about their money and positive customer experience. Consequently, the companies win the loyalty of their end-users and experience financial growth substantially.
Concluding Remarks
In a nutshell, the address verification system is effective against chargeback frauds, illicit account hackings, and other financial crimes. If businesses do not take this matter seriously, they will keep losing their financial resources. This is because fraudsters keep using sophisticated ways to exploit the loopholes in the security system. The application of an address verification solution is in agreement with the KYC/AML regulations by the international regulatory bodies.
The advanced address verification system is a powerful solution that can reduce financial fraud cases efficiently. The integration with artificial intelligence makes the system even more powerful because it reduces the chances of errors while streamlining the customer onboarding procedure.