Businesses are changing operational mechanisms for robust financial processing and good return on investment (ROI). It is of no surprise that e-commerce platforms face more online address verification services. Before the rise in fake address entry fraud, companies were oblivious to its ruthless consequences. It is significant to verify address of onboarding customers to avoid fraudulent attacks. Different seasons and events give a boost to chargebacks, like the holiday season, the summer season, or special events. To control fake location address deceptions, the installation of digital methods to validate address is mandatory.

Atlantic Council reveals a sharp rise in ransomware in the US during the summers. The use of fake addresses is common in such cases. Business companies are showing resistance to allowing complete services to customer onboarding without proper address verification

Drone View of the Address Verification System 

Verification of the address is an attestation process to verify the permanent location address before any transaction is made. The validation of the process ensures the legitimacy of the users for safe transactions. Identity proof is necessary for address validation. Companies are taking action against customers who refuse to provide genuine addresses for verification purposes. 

Why is it necessary to Address Verify? 

Companies are facing multiple complaints about fake address fraud. The number of B2B and B2C address scams are rising, which is an alarming indicator. Businesses like the travel industry or e-commerce industry normally report chargebacks. The worrisome case is that most organizations still don’t pay the required concern about verifying an address online before giving them access to the services. It jeopardizes the financial integrity and the organization’s reputation. The digital service for verifying address helps to counter the above-discussed issues. Manual methods of address verification are not adequate to authenticate customers to access business or transactional services. That’s why online address verification is taken as the right choice to debunk any fraudulent attempts before the commission. 

Cyber-attacks like phishing (building a duplicate website in coherence to the original one to steal information) have become highly common today. We must know the cyber security basics by taking this Cyber Security Course to protect ourselves from cyber attacks.

Address Verification Mitigates Money Laundering 

Money laundering is about concealing ill-gotten money or other assets from prohibited sources and turning them into clean money. It is a serious global crime that goes unchecked in various parts of the world. It is considered that illicit cash flows are supported by fake address entries to conceal the identity. Furthermore, if the inspection is carried out, fraudsters can easily get the escape channel. Forgery is a common practice to manipulate the actual address using different technical methods. To combat swindlers, it is imperative to validate address of the customer. Anti-money laundering and counter-financing compliance procedures can effectively handle illegal asset flows to offshore accounts. Suffice it to say, the perpetual rise in scamming activities pushed the global authorities to introduce address verification compliance mechanisms for AML/CFT in every industry. 

Address Verification Using Machine Learning 

Companies need to know the AI methods to verify the addresses for safe business processes. Let’s discuss the important online address verification procedures. 

  1. Step One

The customer enters the ID document and address document for initial verification. Automated AI programs verify the ID card against the address card for validation. The purpose is to scan whether the same person bears the address document or if a difference is there. 

  1. Second Step 

In the second step, machine learning is applied to the address document. The system uploads the document. Using geospatial data online, OCR and ICR techniques help to verify the address. 

  1. Third Step

In the final step, AI algorithms extract the address details of the customer and verify them with the given address document. The obtained results are stored in the database. The API calls are used to obtain the required results without any change in the actual data.  

Checklist of the Address Documents Required for Verification 

Before sorting out the documents required for verification, it is indispensable to consider a few things. The address document needs to be no older than three months. Otherwise, the AI software would reject the request for verification. Most companies continue to work without considering the significance of the requirement. The documents required are as follows

  • Passport
  • Driver’s licence 
  • Original rent agreement
  • Utility bills 
  • ID card 

All the above-shared documents are proof of address and need to be updated frequently before three months’ end. 

Final Thoughts 

Over time, digital scams are increasing, and fake addresses are playing a significant role in fraudulent actions. Organizations need to frame stringent laws to combat address verification issues. Conventional verification strategies are no more helpful to address the crimes. Artificial intelligence is a key player in improving the efficacy of online address verification for customers.  


Please enter your comment!
Please enter your name here