The recent shift to online business platforms has affected organizations in both a positive and a negative way. On one hand, it has opened practical business doors for entrepreneurs to showcase their potential through online channels. On the other hand, imposters have employed advanced methods to exploit e-commerce merchants by causing chargeback fraud and using fake residential addresses to exploit their business operations. According to a 2023 report, the online business sector has lost approximately $41 billion due to online payment fraud. Online merchants must validate the customer’s proof of address before delivering required products and services.
What is Proof of Address and How Does it Protect Businesses from Address Fraud?
Proof of address or address verification is the process of authenticating the customer’s residential address information before conducting online transactions. Address verification uses machine-learning solutions to validate the customer’s address to prevent any risk associated with address inconsistencies. It incorporates an advanced address look-up technology that accurately validates and ensures address accuracy due to its global coverage of address database and ghost identity detection. It utilizes an authentic address standardization tool that converts the unstructured address information into a consistent and uniform format by formatting the credentials according to country-specific requirements.
Address verification incorporates a revolutionary geospatial address locator that detects the differences between the customer’s current residential IP address and the address provided on the verification document. Some modern address identification services compare the customer’s given address locations with international postal offices to authenticate their addresses with extensive accuracy. It incorporates digital solutions and machine learning solutions, which allows it to detect discrepancies in identity documents, such as photo editing and information alterations. Proof of address eliminates all these issues and provides a secure environment for online businesses.
Companies must understand how to get proof of address to promote secure transactions. This address verification process is briefly discussed below:
How to Get Proof of Address Online and Reduce Chargebacks?
Online retailers must understand the steps required to verify the customer’s address to minimize chargebacks and identity theft fraud. The address verification process begins with the customer connecting with an examiner through online platforms. Customers submit a picture of their identity document containing their residential address. This information is extracted through Optical Character Recognition (OCR) technology to ensure accurate data extraction, mitigating the occurrence of inaccurate data entry. Digital address verification services compare the customer’s live location using their IP address with the provided address information to detect their authenticity. The OCR technology detects the alterations and substitutions in the documents, reducing the risk of impersonation attacks.
What are the Necessary Proof of Address Documents for Secure Business Operations?
Online retailers can validate the customer’s address information by checking the legitimacy of various identity documents. Companies must validate the customer’s documents which may include:
Identity cards
Utility bills
Employment letter
Driver’s license
Bank statement
Tax returns
Insurance agreements
These identity documents contain the customer’s financial details and all the necessary information related to the customer’s identity. Companies must utilize online document verification methods that allow them to extract essential information accurately. After validating these documents, companies can authorize the customer’s address to enhance online transactions and protect them against credit card fraud.
How Does Address Verification Enhance Various Organization’s Services?
An efficient address verification solution can streamline e-commerce services, allowing them to deliver products only to legitimate entities with accurate shipment addresses. It protects the banking sector from account takeovers as it can allow only legal customers to access the financial services. Address verification can enhance the logistics industry to ensure seamless supply chain operations by authorizing the delivery location. Governments can utilize address verification services to ensure that the voters cast their votes for their delegated applicants based on their locations during the election schedules. It can help real estate property transactions be conducted accurately by verifying the underlying property addresses.
Why is Address Verification Significant to Combat Address-Related Fraud?
Address verification is significant in minimizing address-related fraud. It prevents illicit entities from committing chargeback fraud and prevents imposters from accessing online platforms for illegal financial transactions. It reduces the number of total returned shipments as products are delivered to only those individuals whose residential addresses are authentic and verified. The proof of address reduces the overall fraud related to product shipments. It enhances the customer’s online experience as their stored address information can be used in the future to provide a seamless and fast product delivery process.
Summing It Up
Proof of address is essential for online retailers to minimize the risk related to address inconsistencies. It incorporates advanced address look-up technologies that ensure address accuracy. It utilizes optical character recognition solutions, which allow them to accurately extract the address information and compare their live location with the stored address information in their online directories. It enhances the business operations of various industries, such as e-commerce, logistics, and the government sector, to strengthen their services. It reduces chargeback and identity theft fraud, protecting customers from illicit activities.
