As per stats by Hubspot, worldwide industries lose $1.6 trillion due to their incompetency to meet verification standards and attain reliability. This way they lose their customers’ and that is what greatly matters. One of the common crimes in this regard is the use of fake addresses to hide identity. Industries falling prey to these risks are e-commerce, retail, healthcare, and finance. Digital platforms have faced a massive hit due to abandoned carts and chargeback frauds.
Therefore, these industries need digital identification and address verification for secure customer onboarding. This tech corresponds to solutions that help industries to authenticate address-based information and make sure that they are dealing with sober customers. So much so, they can also predict any suspiciousness while preventing fraud, mitigating chargebacks, and minimizing misdelivered products. Read on to explore more about the industries that are in need of this encrypted solution.
Which Industries Need Address Verification?
Address validation is mandatory for every industry as obliged by regulations. Without this, industries can not ensure a better customer experience. Furthermore, verification enables industries of all kinds to mitigate fraudulent concerns.
- Address Verification and E-commerce Industry
The e-commerce industry is the most prone to address-related frauds. Customers use fake addresses to hide their identities and purchase AO products. This is why e-commerce platforms experience the most financial losses mainly due to chargebacks and failed deliveries. Furthermore, criminals often use inaccurate details to slide through the verification process. Hence, digital verification not just detects these forgeries but also prevents them from registering.
- Address Verification and Retail Industry
The retail industry is largely concerned with attracting global customers to firstly expand their services and secondly attain a huge user base. To make this more seamless, the industry is employing digital verification of address solutions. This way they can speed up the process and customers won’t have to abandon the process. This is because they are more attracted to a “one-select” option than a length process.
- Address Verification and Financial and Banking Sector
The financial sector is the second most exposed to malicious activities. Criminals use forged, camouflaged, stolen, or altered documents to apply for benefits and insurance, open an account, and make fraudulent transactions. Therefore, it is crucial for the financial and banking sector to ensure that they are assisting and registering legit customers. Otherwise, this industry will have to experience terrorism financing, fake accounts, identity theft, and illegal transactions. The verification of address services here allocates privacy and security to customers’ information while preventing malicious activities all the way.
- Address Verification and Healthcare Sector
The healthcare sector holds and maintains the most sensitive information and if that is compromised, the health-based information of global patients will become tough to secure. That’s why the healthcare sector needs advanced security services. This is so because it gets somewhat tricky to maintain and obtain information through manual methods. Therefore, online address validation is the healthcare sector’s go-to solution for accurate and less time-consuming record keeping and information collection.
How Verification of Address Backs the Industries?
The verification of address has several benefits:
Ensures Regulatory Compliance
Economies are suffering from dramatic consequences because of the rise in digital criminal activities. By verifying addresses, industries can authenticate customers’ identities and assist solely the legit customers. This ensures compliance with the KYC/AML regulations put forth by authorities.
Presently, the biggest hubspot for gambling – the US, mandated borders to verify their players’ addresses, similar to the financial sector. Platforms employing digital services can then run verification checks and authenticate the customer’s identities and whereabouts. Due to non-compliance industries will have to face hefty fines and in extreme cases complete shut down.
Risk Detection and Prevention
Industries like e-commerce, finance, and lenders can ensure that customers satisfy their identity claims. For instance, Airbnb received a big number of complaints regarding fraudulent bookings during the lockdown. Due to this, the platform underwent a massive financial loss and a question mark on its reliability.
Likewise, in the case of the banking and finance sector criminals prepare fake identity documents to sweep through the verification process. Therefore, by employing online verification, banking, financial, and the rest of the sectors can not only ensure compliance with KYCC requirements but also take proper action against the criminals’ activities. Ultimately they can save the $1.6 trillion they have to give up every year.
In a Nutshell
Online age verification solutions help businesses verify information of huge client bases and this way they can speed up the pace of the process, mitigate fraud and ensure KYCC, KYC, and AML compliance. Moreover, industries can save resources alongside time, while ultimately retaining their reliability.
