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Address Verification System: Importance of Employee Address Verification

Address Verification

Fraudulent activity is on the rise, resulting in significant losses for businesses. As a result, many businesses now use an employee address verification method. It is necessary to check that the person they are recruiting is authentic and that the address they gave is correct. As per Shufti Pro Funding, almost 2 billion people used digital purchasing portals in 2020 and the worldwide revenue generated was about $4.2 trillion in 2021.

Lawbreakers and fraud activities may grow if this identification verification is not performed. Moreover, this procedure protects organizations against deceptive practices and double-dealing.

What is Address Verification? 

The authentication of the person’s shared address with the firm is referred to as verification of address. In basic words, address verification is the process of verifying whether or not the address individual claims to reside in is legitimate.

Address verification is performed for a variety of reasons, including employment, recruiting, giving scholarship opportunities, and onboarding financial customers and investors. Staff address verification, for instance, is an important stage in the recruiting process. It’s because a worker has access to critical information. As a result, a staff member must be someone on which the organization can count. According to Shufti Pro News, because of Covid-19, there has been a 110% rise in online grocery shopping.

A bank, too, needs actual consumers. It does so by verifying an address papers, which include the user’s official ID evidence, which includes their name, residence, and picture. People nowadays prefer digital address verification. 

Address Verification Is a Necessity

In corporate objectives and strategies, data is extremely important. The information is used by 97 percent of the firm’s staff for business prospects, boosting overall income and providing the greatest service to clients. With address validation, there will be less wasted outgoing mailings, a more appropriate marketing workflow, and lower expenses.

According to research conducted by the Association of Certified Fraud Examiners, there were 43 percent of occupational scams, with 52 percent of employers performing address authentication and background inspections and 48 percent not doing so. Background inspections businesses discovered certain incidents of fraud as well. Businesses can also avoid possible damage or loss by acting quickly. 

The Need for Employee Address Verification

For the reasons listed, personnel address verification confirmation has become critical:

Preventing Fraud

The most reasonable explanation to address authentication is to avoid fraud. Because workers have access to sensitive and classified documents, a company must be confident in the person it hires. Address verification solutions are important for reducing identity fraud and reputation management

Events of Emergency

Emergencies may occur at any moment and to anybody. Employee address confirmation will allow companies to contact the worker’s family address in the event that something goes wrong at work. 

Share Personnel Paperwork

Employers may use the confirmed staff address to deliver any documentation, awards, or anything else to the employee as needed. Personnel address verification, once completed, can assist workers in such instances and eliminate the need for them to inquire about the address repeatedly.

Enhanced Compliance

To protect a firm’s authenticity and safeguard individual security. FATF (Financial Action Task Force) recommends that every corporation do an identity verification assessment. These types of checks can assist online businesses in meeting KYC requirements. 

How to Verify Address Online for Employees?

Employees and management can both benefit from digital address verification. The employee must input the address validation documentation online, and the validation documentation online, and the validation is completed electronically. The geographical coordinates information is used by the web platform to verify the location’s validity. It is then accompanied by a physical examination.

Documents Required to Validate Address 

  • State-issued ID card
  • Social security documents
  • Utility Invoice
  • Insurance documents
  • Tax receipts and documentation
  • Lease Contract
  • Driving License
  • Mail addressed to the applicant
  • Documents for college admission
  • Card for voter registration
  • Bank statement or insurance policy

Organizations that Address Verification

To combat fraud, every sector requires this type of verification. However, it is especially critical in the banking and e-commerce industries because:

Finance Sector

Employees and consumers of banking and financial firms must have their addresses verified. To reduce the danger of online fraud, money laundering, and terrorist funding, the organization must also verify its members.

e-Commerce Industry 

Every year, the e-commerce industry suffers huge losses as a result of abandoned orders. The address verification strategy offers another degree of protection, reducing fraudulent activity and preventing financial losses.

Bottomline 

Online Address verification has become a necessity for the finance and e-commerce industry in a battle against fraud and it mitigates the risks of financial crimes and customer abandonment

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