Address verification solution is a great way to verify the location of clients and their business network. The fraudsters mostly provide a fake address to carry out their illicit activities freely. With invalid address information, the authorities have a hard time finding and arresting the culprit. To make sure their business network is secure most organizations adopt address verification services. It is implemented at every instance of the onboarding process for a new client and plays an important role in the verification of address. The latest systems are capable of verifying an address within seconds!
Address verification is a process of capturing the geo-location information of a customer. This technique uses multiple ways to extract the location of the client. The address data is gathered to determine the exact position of the customer. The information is collected about the area of the client with various methods. The process of address verification is initiated by organizations as a part of AML screening for their businesses. It is also a major phase in the customer onboarding phase that helps in the risk-free registration of the new client.
Which Types Of Addresses Are Verified?
All sorts of addresses are supported by the new validation systems. With the addition of digital methods, the online address verification process is being deployed by remote platforms to verify the location of the customers. The address authentication technique works in almost every country with address lookups from official databases. When appointing a new business client, authorities use efficient address verification solutions to verify their:
It is verified by evaluation of the client’s identity documents and other legal paperwork such as utility bills.
The business registered location is verified by the address verification system. It uses business documentation such as filings and tax bills to ensure the correctness of the address.
To verify the customer completely all the addresses of the client are evaluated. The legal address that the client uses for business reporting and tax filings. This method of verifying legal location helps in minimizing risks.
Documents Supported For Address Verification
The document verification process provides a lot of information about the client. Their name, age, nationality, and all other related data are gathered through document analysis. The address verification systems also utilize customer legal paperwork to verify their associated addresses. The new AI-Based software uses modern technologies such as optical character recognition to extract data from any sort of ID or secondary document. A wide range of legal papers is supported by these systems. The list of accepted documents is large, this blog covers only the major types required by most of the systems.
The identity card is the most requested piece of document for every sort of verification process. Address verification systems also use customer identity cards to extract their location data. The ID document carries the residential address of the client which is necessary for verification to be completed.
Other than the travel agencies, the address verification service also requires customer passports. It performs multiple checks on the user document to validate the address. This way of authentication also provides information about customers’ previous addresses.
The taxation certificates are processed at the customer’s provided address. They provide the correct on-point address of the client. The address verification systems also analyze these papers to extract the location of the client.
The utility bills are sent to the personal address of the client. In the case of a business, these invoices carry the official location of an organization. The address is extracted from these papers for the verification of customers.
With bank drafts, the financial institution mentions the verified address of the organization. They provide previous location checks of the clients. The online address verification tool validates the client’s location by verifying the address from bank statements.
In this modern world of trading, organizations are subjected to new risks from attackers. The crime rate is increasing each day with refined ways of cheating by fraudsters. To eliminate the risks of theft, most firms perform a complete identity and address verification of the client. This process is observed at the time of new customer onboarding for the prevention of attackers from getting into the system. The address verification check uses multiple documents of the customer to process their locations. This operation identifies all the residential, business, and legal addresses of the client.