Address Verification: The Bedrock of Enhancing Customer Experience

The trend of digital businesses is growing rapidly. Tech-driven world is adopting new ways of increasing sales. Customer experience is the reflection of a brand’s success. On other hand, criminal actions are rising in number with upsurge in online businesses. The market’s vulnerability is vivid with shocking statistics that around 1.6 trillion USD is lost every year due to poor customer experience. Misplaced deliveries and chargebacks are surging due to fake addresses.

 

Financial Times reveals that fake addresses for financial fraud are rapidly growing in number. Scam companies are facilitating fraud entities by using forged address locations. It not only damages the reputation of service providers but also impacts customers’ experience. The method of online address verification can play a pivotal role in curtailing scams. 

What is the Meaning of Address Verification

It refers to the verification of a customer’s or client’s address to ensure that there are no scam actions involved in the transaction using fake addresses. Various bogus companies operate in the market, selling their services using fraudulent location addresses. The process to verify address using digital tools is called “address verification”.

Why is it mandatory to Validate Address for Crime Reduction? 

With the digital revolution, businesses are growing, but with the rise of online companies, crimes are also rising. E-commerce is a common business nowadays. COVID gave a significant boost to digital applications for a user-friendly business environment. Often, digital service providers send the product to a fake address, and customers claim the cost of the wrong shipment. The false chargebacks for illegal plans using forged addresses cost digital businesses. To fight against fraud involving addresses , it is essential to implement an address verification system online. 

 

Unverified and unregistered companies are involved in illegal trade under the garb of wrong addresses to avoid accountability. It creates a volatile situation for the economic system. Before the rising cases of fake address fraud, the least attention was paid to its verification process. Over time, the IoT (Internet of Things) has changed global business norms. Due to fake addresses, data security is also under threat. People’s sensitive information requires protection from cyber attacks or other fraudulent activities. It requires the digital procedures of verifying an address to avoid errors. The misplaced deliveries are largely based on phoney addresses. 

Verification of Address: Mitigates Illegal Cash Flow 

Verification of customers and service providers is necessary to overcome the crime rate. The overall situation of illegal financial activities is dilapidated. Not only digital businesses but all the financial industries need to take strong steps to ensure online address verification for crime reduction. Money laundering is a common practice that is deeply impacting the global GDP. The estimates reveal that around 2%-5% of global assets are illegally transferred to foreign fake accounts. The initiative of verifying address using potential ways is a step forward to successful online businesses and customer experience. No business would like to be average. The customer-centric approach indicates a brand’s value in the market, but illegitimate activities like service deliveries to pseudo addresses have an impact on the financial market. There are several sham organizations and service providers selling their products using disguised address details. It makes the process of address verify difficult due to unverified UBOs. Effective tools of verification can control illegally obtained cash flow to offshore bank accounts. Different parts of the world, even the developed nations, are struggling to get the better of criminal actions in financial domains. 

Online Address Verification Tools and Techniques

Automation is the most effective method of verification. Using AI-enabled models and machine learning algorithms, system sends address verification request to an automated machine. API calls send messages to server. The system verifies ID cards of the customers to verify their identity. In final step, system verifies address document. The results are stored in system’s database. In case of fraudulent activity, system detects it. It is important for all businesses to validate address of a client’s onboarding to escape criminal action. 

Final Thoughts 

Technology is fastly advancing to new features of automation. Companies are eager to secure their business interests and counter crimes based on forged addresses. 

It is necessary to fight chargebacks to reduce financial losses. For accurate proof of address and AML/CFT compliance, online address verification is a requisite. Global regulatory authorities need to take responsibility for framing laws that can easily bring hoax entities under the bar of justice. 

Author Bio:

This is Aryan, I am a professional SEO Expert & Write for us technology blog and submit a guest post on different platforms- Technoohub provides a good opportunity for content writers to submit guest posts on our website. We frequently highlight and tend to showcase guests

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