Criminal frauds are often very strenuous to recognize and fight. Even before the COVID-19, many organizations were finding it very hard with the rise in online crimes, scams, identity theft, etc. The rising of digital automation is giving an increase to online money crimes that are influx the businesses on a global scale. Usually, they breakdown to have innovative software and procedures in place to combat this outrageous outbreak. Therefore, the state of art identity verification solutions providing digital address verification has guaranteed to reduce online frauds.
The rising of financial crimes is increasing anti money laundering accounts from two percent to five percent of annual GDP which is discomforting for organizations and regulatory authorities alike. That being the main issue, regulations have put down strict regulations and compliance to combat against online frauds this set forth enhanced know your customer and anti-money laundering compliance in the center of attention for financial organizations. Every financial organization either insurance or banking sector is liable to accompany automated know your customer procedures at the time of onboarding new clients. Know your customer is a detailed recognition authentication system that incorporates digital AVS is sometimes known as proof of residence.
Advanced know your customer is a major component of CDD processes. It is performed by organizations to recognize and authenticate the real identity of clients. Followed by rigorous background screening to meet anti-money laundering compliance in order to diminish any thefts involved.
Address verification system (AVS)
AVS allows organizations to execute their procedures without any danger of criminals. Just like know your customer authenticates the identity of the clients that they are who they say to be. Usually, AVS makes sure that the original address of the clients where they actually live. It also ensures that the address information is accurate, updated, and actually exists. The clients are required to upload an image holding an identity document that is authenticated such as bank statements, driving license, passport, and utility bills.
The residential data is examined through optical character recognition and the feedback is displayed on the monitor whether authenticated or declined. Criminals usually use both original and forged data to get into the software, known as synthetic identity theft. The cause why AVS is an important part of the know your customer procedures as it aids in matching the residence address of people with the address provided on their documents.
Make Precise decisions
Decision-making relies upon the accessibility of precise information; however, organizations need to require all data about their clients. Once you have data about the clients, you can make more accurate decisions and draw up enhanced strategies to target your business.
Diminishing identity theft
Obtaining someone’s identity and utilizing it for their own benefits is identity theft and unauthorized addresses can contribute to the increasing fraud. You may be socializing with a criminal so authenticating addresses before dispatching your emails can save you from any association with fraud. Before your organization gets underlined as a fraud, it is to verify the id card and address check online through an efficient authentication system.
It all boils down to
An online AVS permits organizations to authenticate all their customers and filter accurate clients. Sending mails to the accurate destination can make sure an increased return on investments. Criminals are filtering new models of identity fraud and sending emails to an inaccurate address can be a problem for the organization. Therefore, digital address verification is vital for saving the organization data and information.