Address Verification – Authentication Tactics to Restrict Fraudsters
Global industries are undergoing massive technological shifting which is greatly influencing the way customers spend time online. Keeping this in view, the e-commerce industry is also aligning its operations to better assist clients. However, the innovative measure is giving rise to various other problems including chargeback fraud, abandoned carts, and failed deliveries. While combatting all these risks, e-commerce lost over $1.6 trillion.
This requires e-commerce platforms to integrate automated address verification services. For this, the digital solutions are providing robust tools that not only validate information but also analyze geolocation for additional accuracy. Ultimately, the e-commerce industry can save time and operational costs. The blog discusses how the online address verification process works and benefits digital industries.
Steps Involved in the Verification of Address Process
Considering rapid changes in e-commerce operations, the platforms require more than just information validations. The fraudsters are sophisticated enough and use fake information to avail chargeback or other benefits. This is why the e-commerce industry needs to bring in efficient AI-powered address verification services.
They simultaneously provide a user-friendly interface along with accuracy. In case of a tricky, complex, or risk-involved process, the platform is likely to face backlash in terms of customer retention. To overcome any drawbacks, online verification of address provides a seamless and easy experience with the following steps:
Filling in the Information
In the foremost initial step, the online address verification system asks users to manually enter their information within the columns of the form. These include proof of address such as jurisdiction, area, street, postal code, and social security number.
Submission of Identity Documents
The system then asks the customers to provide evidence to support their details. These involve identity documents such as ID card, passport, and driving license. Users either upload photos or face cameras while holding documents in their hands.
Submission of Secondary Documents
In this step of the address verification process, the users are asked to upload secondary documents. These serve as additional evidence. For instance, utility bills, insurance details, ownership or rental agreements, and credit card bills.
Data Extraction
After successful submission, the verifying address system uses OCR tools to extract and record details from the documents. It also uses AI to map facial features. All of this extracted data is later used for cross-verification.
Verification and Presenting Results
In the end, to validate address, the system critically analyzes and cross-matches the information users entered. It also carries out checks on geolocation for further authenticity. After successful analysis and cross-verification within global registers, the so far-fetched results are displayed on the screens of users. They are later updated in the databases for future use.
Address Verification System – Benefits for E-Commerce Platforms
As per Shufti Pro News, fraudsters are not at rest and carry on to perform illicit activities. In turn, they expose e-commerce to various drawbacks such as extra operational costs, identity fraud, false chargeback claims, and worst of all reputational damages. The lack of an inadequate address verification mechanism will also result in driving the customers away.
Hence, the e-commerce industry largely requires a digital address verification system for various reasons. Firstly to automate the onboarding process, secondly to streamline the process to verify address, and thirdly, to assure a positive and secure customer online experience. More of the reasons are in the next section.
Fraud Prevention
In order to overcome address-related fraud, online address verification solutions are among the pre-requisites. To ensure the order reaches the right customers and prevent additional costs, digitally verifying an address has become a liability. This way e-commerce industry can better perform in the digital sphere.
Moving on, the e-commerce industry is facing a fast-paced uplift in terms of both reputation, sales, and customer retention. This is why digital solutions to verify address are now a necessity for them.
Reduces Failed Deliveries
The e-commerce industry is seen facing millions due to returned shipments, chargeback, and failed deliveries. The prime reason behind this is the increase of fraudulent activities and inadequate measures to validate address. E-commerce returns faced a rise of 70% due to these drawbacks. Therefore, it has become mandatory for platforms to integrate better address verification systems.
Improve Customer Experience
Along with other benefits, solutions to validate address also help e-commerce platforms to allocate a positive user experience. Digital verification of address further adds to the prevention of customer drop-off while securing the overall e-commerce operations.
In Summation
Where in previous years, e-commerce sales are experiencing a tremendous boom, the fraudulent activities are simultaneously increasing. This calls for efficient address verification solutions. To secure overall operations and provide an enhanced experience to customers, e-commerce needs to take effective measures. The first in line for this is the integration of online address verification. This will ultimately safeguard e-commerce platforms from falling into fraudsters’ traps.
