The year 2020 has been a rollercoaster for everyone and the coronavirus pandemic has brought several changes for business operations. All the businesses have realized the importance of digital means of communication and operations. With several changes, taking the digital route to growth and success has become the new normal for industries. Fraudsters are also figuring out better ways of fulfilling their malicious intent and the need for robots identity checks is increasing. Hence, address verification has become essential for all businesses, especially the enterprises that operate through virtual means.
Stringent laws of the states, rising scams, and extremely sophisticated well-equipped fraudsters are making it challenging but KYC with address validation can help all the companies.
What are online platforms?
Businesses that operate through virtual means are termed as online platforms. Generally, people misperceive the idea of online platforms and consider eCommerce platforms as the only online business. However, recruitment companies that operate online and freelancing platforms are also online businesses or platforms.
Why do online companies need address verification?
Fraud is everywhere and the businesses operating online are facing the most problems. Online data is like a goldmine for the fraudsters and protecting the virtual platforms is essential. Here is why their security is vital for everyone these days.
Fraud Prevention
Money laundering, identity theft, account takeover fraud, phishing attacks, and BEC are some of the common scams prevailing in online businesses. Companies can identify the location of the customers. If it is not a registered jurisdiction, the firm can reject onboarding.
Complying with the KYC Requirements
The stringent KYC requirements of all the states are making it challenging for any virtually operating business to survive, especially with the rising number of fraudsters. AML solution and KYC services with address verification can help businesses in complying with the
Combat Terrorist Financing
The majority of money laundering activities end up in terrorist financing. May fraudsters use their illegally earned money for supporting terrorist activities and virtual businesses that don’t verify the addresses of the customers. Financial institutions operating digitally face such troubles the most.
Prevent Money Laundering
Fraudsters are using third parties for concealing the origin of their illegally earned money. Verifying addresses means you know the jurisdiction of the sender and receiver, hence the financial institutions can prevent money transfers to any one of the areas.
Secure Customer Onboarding
Address validation not only helps businesses to combat crimes, but it also helps them securely onboard customers. Legitimate customers are the target and achieving the goals is possible with KYC with an address verification system.
Build Customer Trust
Address verification ends up in building customer trust. Customers feel secure about the platform and feel blessed to be a part of an organization that cares about their security. Furthermore, they are confident that the data is secure with the platform.
Enhance Customer Experience
Enhancing customer experience is another issue that almost all businesses face at some point. Being an online entity, you have to ensure all the customers are securely onboarded and their experience is legitimate.
Conclusion
The trend for online operations was on the rise and has rapidly increased during the COVID-19 pandemic. Everyone is benefitting from these companies and fraudsters are attacking these platforms with sophisticated techniques that no one could identify. Applications of artificial intelligence like machine learning and deep learning are not only helping businesses but fraudsters as well. Criminals are using these techniques to fulfill their malicious intent as well. Money laundering, account takeover, terrorist financing, and several other scams have increased rapidly. Combating these crimes is essential and identity verification is one way of achieving the goal. Complying with KYC/AML laws will get easier for all the businesses operating online.
Meta: Address validation system is not only helpful for combating fraud but it also ensures that all the customers are secure. The company can comply with KYC/AML solutions.
