Address Verification processes are simple, essential, and fairly aptly named. These services offer systems that analyze customer information for their postal addresses and then authenticate them.
ID verification is a vast domain and includes validating a range of personal identifiers. Online address verification is a crucial part of the total IDV process. While the world may be going digital, it is still very important for businesses to verify addresses of their customer or client base. If you run a business, today there are many options in the market that can help you to validate addresses.
Understanding Online address verification systems
Address verification solutions are one of the most critical components of a company’s ID verification processes. Through IDV, these help build security by reducing the likelihood of fraud.
Today, everyone has a digital identity. Email addresses provide sites to reach individuals even if they don’t have access to/presence on other digital sites. Emails have been consistent since they were first introduced. So, if you need to reach out to someone online, email is essentially the ideal route.
However, what are you to do if they don’t check their email? What if the person you’re dealing with is a fraud?
Email addresses are easy to create and even, fake.
If you run a financial business or if your business involves any major risk, it becomes crucial for you to verify addresses of real-life accommodation sites or postal addresses of your client base. This can help you work better knowing that your business is secure, and thus, also, improve business processes. For many businesses today, online address verification is a crucial part of most internal and external processes.
How the address verification process works
In the past, standard ID cards or word-of-mouth were used to validate an individual’s address. Today, owing to modern technology, we have smart digital systems for the verification of addresses. These systems utilize complex combinations of data sources such as postal service providers, public records, and other third-party networks.
Step 1: Collection of a government-issued photo ID and selfie
When it comes to verifying an address, the first step is to collect a document that lists all the crucial information about a person’s identity. This document, a standard state-issued photo ID, is essential for the verification process.
However, collecting the ID on its own, as a picture, is not enough. In order to verify address correctly and with minimal chances of fraud, the online address verification system asks the end-user to submit the ID card holding it up to their face, in a selfie.
Step 2: Collection of address document as a secondary ID
After collecting the photo ID, the system then demands a secondary ID. This ID document must contain the postal address of the person in the ID and selfie. The document must hold some legal value and may be utility bills, tax forms, ID cards, etc.
Step 3: Processing, Verification, and Results
After both documents are obtained, the address verification system parses them thoroughly to identify and match identities.
Firstly, the ID and selfie are checked for authenticity by OCR and facial verification software. The system also matches the face against the picture in the ID.
In the second step, to validate address, the system reads through the secondary document. This process identifies all address-related features, such as street name, city, state, zip code, etc.
The results are then displayed after the system is done reading through and analyzing the documents.
Online address verification solutions – Does your business need them?
When we talk about the need to verify address for businesses, it includes all financial businesses, high-risk businesses, and those that deal in expensive or sensitive products.
Address verification solutions allow you to ensure the legitimacy of clients and customers. Whether you have an e-commerce business or a healthcare one, address verification allows you to decrease chargebacks and monetary fraud. Additionally, you will have a stronger position in case of a lawsuit.
The address verify process is also regularized by the law for specific industries. These include but aren’t limited to government agencies, insurance companies, and financial institutions.
To sum up
Address verification is a rapidly growing industry with a CAGR of 14.4% and an expected worth of USD 18.6 billion by 2027. Such rapid growth only signals the importance of the technology for businesses that want to stay safe.
However, even if industry trends were not present, all businesses need to ensure that they are dealing with the right parties. Online address verification helps solve this one part of the crucial IDV or KYC process.
For businesses looking to validate addresses of their partners and clients, digital services today offer a lot. From integration into business applications such as e-commerce platforms and CRM systems, the process to verify address has now become smooth, seamless, and efficient. Being a critical component of an organization’s data quality strategy, address verification, in the long term, can help improve business processes building profits and industry rankings.
