- The identities of customers cannot be verified fully without their address and the failure of correct address capturing can result in identity theft and fraud.
- Since wrongly delivered shipments are returned to the business, it puts them under unnecessary monetary strain owing to re-deliveries and refunds.
- https://communalnews.com/wp-content/uploads/2021/02/4-Ways-to-Get-Your-Next-Home-In-the-Perfect-Location-f99599dc-300x169.jpgPlatforms that deal with listings of vacation rental properties are in dire need of address verification services.
The address is part of someone’s details that can be copied, forged, and manipulated to steal their identity. The importance of address lies in the fact that any business, organization, or individual’s identity cannot be properly validated without their address. Nowadays, almost every business requires customers to provide their addresses. Although, the address verification process through which these businesses verify the addresses of consumers can vary. However, automated address verification services ensure the maximum accuracy of verification results and safeguard various interests of businesses.
What is Address Verification?
An address verification process is performed to verify the customer’s address before they conduct any transaction with a particular business. The identities of customers cannot be verified fully without their address and the failure of correct address capturing can result in identity theft and fraud. So, firstly, it is pertinent that the address provided by the customer exists. Then, the address verification solution verifies whether the provided address belongs to the actual person. Thus, this process ensures the legitimacy of the consumers of a particular business and the transactions made by them.
Businesses That Require Address Verification the Most
The Coronavirus pandemic has forced businesses to shift their operations to the online space. The current world situation and the subsequent changes in the market dynamics have certainly caused a surge in online shopping. But this rapid and massive shift to the digital space has created security loopholes in the system which are exploited by fraudsters. One of these problems is correctly capturing the address. If organizations don’t verify the address or record it wrongly, it can bring about bundle inconvenience for the businesses. Since wrongly delivered shipments are returned to the business, it puts them under unnecessary monetary strain owing to re-deliveries and refunds.
It would not be wrong to say that financial institutions are prone to the most ID-related frauds. When fraudsters create counterfeit profiles by forging fake addresses or tampering with the stolen ones to open bank accounts, then the particular bank has to bear the blame for not employing an address verification service. When the unfortunate happens, these organizations become violators of KYC/AML rules. Hence, regulatory bodies put penalties on these banks for failing to correctly verify their customers’ identities. Moreover, when business is conducted with the fraudsters, these organizations have to issue chargebacks to the victims of ID theft and fraud.
Home Sharing and Renting Services
In recent years, the sharing economy industry witnessed a significant and continued spike.
Platforms that deal with listings of vacation rental properties are in dire need of address verification services. Verifying an address is pertinent for these platforms as someone can wrongly state an address on their website. These types of frauds are employed by criminals to get refunds. In this process, the home-sharing platform ends up issuing refunds while tainting the experience of their legitimate customer.
Third-party logistics companies provide a wide variety of services including but not limited to transportation, distribution, collection, and packing. They are also known as 3PLs. They are employed by businesses to take care of the delivery of packages from start to end. This process also includes verification of address. To ensure the delivery of a package to the correct address, these companies integrate an address verification system into their systems. However, the failure to deliver shipments to the right customer means that the 3PLs have to take the financial strain of returns, and not the business the customer ordered from.
Organizations that Need Parsing
Address validation services can parse and verify addresses using natural language processing. They can take addresses in the raw form, convert them into an official readable form and finally validate it.
For instance, wedding planning companies are tasked with dispatching wedding invitations and need to collect addresses of people written on printed handouts. Similarly, organizations like schools and hospitals also record addresses in this way. Hence, the address validation services take invalidated addresses in the raw form and verify them to prevent mailing returns.