Last Updated on August 2, 2022 by Olivia Anderson
The rise in failed deliveries, chargeback fraud, and address-related scams are forcing industries to opt for combatting solutions. Rapid digitization and less up-to-the-mark customer services are other factors massively adding to the increase in these fraud types. As per Hubspot, digital industries lose over $1.6 trillion due to inadequate address checks and a lack of efficient services. All of these factors largely add to the downfall of businesses’ worth, reputation, and reliability.
Hence, industries require robust solutions to validate customers’ whereabouts. Address verification help industries retain their worth by providing services like analyzing geo-locations. Industries like retails, e-commerce, and others with inline stores are the most in need of these solutions. The blog discusses major industries that need to employ online address verification.
Industries Liable for Accurate Verification of Address
Digital transformations are bringing innovations to the table for various Industries such as retail, e-commerce, utility, and finance. Where they streamline the digital process, they are also making space for fraudsters. They use fake addresses or claims to get cashback.
Moreover, customers’ typo errors also lead to failed deliveries and additional costs. This way industries lose hefty amounts while they strive to assure a better experience for both platforms and clients. Therefore, digital solutions to verify address is a possible solution for industries to combat fraudulent intentions. The AI-powered services advanced tools that accurately validate address and help industries make sure the order reaches the right customers. Moreover, industries can better fight fraudulent claims and save additional charges they pay for corrections.
The digital verifying address services are not prone to errors as they automate the process. The system asks customers to upload documents that are later identified. This way industries can secure their order placing, dispatching, and arrival operations. The next section provides details regarding industries in need of online address verification.
E-commerce Platforms
E-commerce is top in line for facing a high rate of address-related fraud. As digitization is bringing innovation to every industry, these platforms are also not left behind. Customers are shaping their attitudes towards shopping and online browsing. Similarly, industries are bringing in advanced measures to assist customers in a better and more convenient way. However, fraudsters have intentions otherwise. They use fake details to dodge the address verification process and claim false chargeback.
At the industry’s end, these activities lead to identity theft, abandoned carts, payment scams, and chargeback. Ultimately, e-industries lose a fortune in fighting these threats. Manual verification of address also adds to these backlashes. Therefore, e-commerce platforms need to integrate efficient mechanisms to verify address of customers prior to dispatching the orders. AI-powered services are capable enough and analyze geo-locations, validate streets, and cross-verify regional information.
Banking and Finance
Considering facing a rise in address-related fraud, baking and finance are the second in line. It handles the crucial information and is responsible for assuring the security of customers’ money. In case of breaches, it can lead to the loss of a fortune. Fraudsters use fake addresses to open accounts or associate with some other one. This helps them steer clear of the address verification process and get their hands on account details of legit customers.
Moreover, criminals also fake their whereabouts to escape the regulatory grip and underground themselves. Ultimately, they easily launder money or fund terrorism without the banks and other firms even knowing. To combat all these threats in time, financial institutions need to integrate a robust address verification system.
Retail and Utility Stores
The utility and retail sector is another easy target for fraudsters to falsely claim chargeback or perform other activities. Since technological advancements are bringing changes to every sector, retail and utility are also innovating their landscape of operations. On the contrary, fraudsters are using fake details to exploit them and dodge the address verification process. These risks increase the chances of zero payments. Ultimately, customers don’t receive their orders, and platforms are left with hefty amounts to pay for failed deliveries.
Hence, retails and utility e-stores need to integrate robust online address verification solutions to authenticate the whereabouts of customers. Due to their nature of operations, it becomes hard to pay additional costs. This calls for efficient verification of address as well as identities of customers.
Conclusion
AI-enabled address verification services are upholding e-industries’ integrity while securing their overall operations. While fraudsters are making ways to online platforms with fake details, digital solutions identify and restrict their access. Industries like e-commerce, retail, utility, and finance are the most in need of efficient mechanisms for verifying an address. With its tools like validations of streets, cross-matching against global registers, and real-time identification, online address verification marks the rank of a promising solution provider.
