Address Verification Systems: Providing the Assist Against Address Fraud

It is a quite unknown piece of information that someone’s address information can be copied, forged, and tampered with to steal their identity. The sensitivity of this information can be well understood by the fact that any organization or person cannot be identified properly without it. Almost every organization requires users to submit ID documents containing their addresses. It is not a novel practice however the ways to verify addresses have changed. Nowadays, online address verification systems are used for this purpose as they provide higher accuracy of results in minimum time.

What is an Address Verification System?

An address verification system is employed to verify the user’s address before they conduct business with a particular organization. The identity information of users cannot be fully authenticated without their address because it is a tool for ID fraud. Also, correctly capturing addresses is important for businesses because it can be used to open multiple fake bank accounts, and apply for new credit cards. Thus, the address verification systems help avoid all these potential problems for businesses by checking whether the stated address is valid and it exists. Then, they verify if the address belongs to the person.

Areas Vulnerable to Address-Related Fraud

In Financial Institutions

It would not be wrong to say that banks are the most vulnerable to ID theft and fraud. Since, most of the time, identity fraud is committed to gain financial gains illegally, so financial institutions become the first target of fraudsters. Using fake address information, criminals create multiple counterfeit bank accounts and apply for credit cards. When certain transactions are made using these counterfeit profiles and cards, the financial institution has to bear the blame of letting fraudsters in their system. This blame translates into hefty fines and operative restrictions too. Moreover, it is mandatory for banks to comply with AML/KYC regulations which becomes impossible if address-related identity fraud is not curbed from its root.

In Online Deliveries

The COVID-19 pandemic has caused a paradigm shift in the product and services industry. To ensure survival, more and more organizations are shifting their operations to the web. This change in the market dynamics has resulted in a hike in the number of online shoppers. But this shift to the online space is not without its risks and dangers. The digital space has become more vulnerable to fraud than it already was. Verification of users’ identities has become a problem and correct capturing of their address information a major subset of this issue. Online businesses risk wrong delivery of products and refund scams.

In Election Processes

It is not a novel tactic to lie about your address information and vote in a constituency other than your own. This is a serious crime that comes under the umbrella of corruption and election rigging. Just imagine if a candidate wins by the application of address fraud, how they will represent the people in the next couple of years. Thus, to ensure the transparency of the election process and selection of the right candidate, impeding address fraud is incumbent upon election bodies.

In Admission Processes

Address fraud is not only limited to professional criminals only but also normal citizens. Parents provide bogus information about their place of residence. They commit this crime to get their children into school out of their jurisdiction. Surely, this may seem like a harmless thing to do. But, when you bypass the rules, you are obstructing the mechanism to keep the society functioning and the right of equal opportunity to all.

How Address Verification Systems Provide the Assist?

Automated address verification solutions are robust in their service and ensure the correct capturing of the user’s address. Businesses can say goodbye to refund process manipulation, fake or stolen credit cards, counterfeit bank accounts, etc. In this process, the online address verification system verifies whether the provided address exists or not. Then, it is confirmed whether a fraudster is using a valid but stolen address or the person in place is the actual owner of that address. Thus, any chances of an address being used in ID fraud are quelled instantly.

Leave a Reply

Your email address will not be published. Required fields are marked *