Are you familiar with the reality that cyberattacks have been rated as the 5th top-rated risk during the pandemic year 2020? Data breaches and fraudulent activities have evolved at a rapid pace especially after the pandemic of COVID-19. Just have a look around yourself. Nearly, and every single thing is digitized in this tech-oriented world. But unfortunately, cybercriminals are also advancing their sophisticated cyberattacks in parallel to these technological advancements. According to researchers and analysts, cyberattacks will tend to grow in both private and public sectors in the upcoming years. 


These progressions in cyberattacks and an extraordinary level of vulnerabilities lead us to the fact that it’s high time for businesses and financial infrastructures to integrate themselves with such real identity verification solutions that assists to combat unauthorized access, illicit money transfers, and fraudulent activities.  Talking of identity verification checks and solutions, address verification plays a pivotal role to manage chargebacks and for the enhancement of customer experience. Let us acknowledge ourselves more about what is address verification and why it is mandatory for businesses. 

What is Address Verification? 

It is basically an authentic measure for the verification and validation of addresses of customers before they carry out any transaction for the prevention of illicit money transfers and fraudulent activities. This ensures that legitimate users get in touch, also all the transactions are done within high-security protocols. This ensures that address verification is essential for real-time identity verification of users. 

Supported Documents 


Address validation procedure can be carried out through the following type of documents: 


  • ID card
  • Passport 
  • Rent agreement 
  • Tax bill 
  • Employer letter 
  • Utility bill 
  • Bank statement 
  • Envelope 
  • Driver’s license 
  • Insurance agreement
  • CPR smart 

Document Validation Checks

Documents must follow the below-mentioned checks to verify the address of individuals 

  • The complete name of an individual must be mentioned on the document 
  • The document must not be modified or forged by any means 
  • The document must not be older than 3 months
  • Corners of the documents must not be folders or crumbled 
  • The type of the document must be correct and accurate 
  • The document must display the complete address in the correct format. 


How Does Address Verification Work? 

Address verification process works as follow: 

  1. The customer is required to upload a selfie in which he/she is holding the official identity document. This is done to match the photo of the customer with the image present on the document. 
  2. After that, the customer is required to upload the secondary document which possesses the customer’s residential address or business address for the purpose of information verification 
  3. At last, the address that is present on official documents is analyzed. Results are stored backoffice and displayed via Application Program Interface (API). 

Key Benefits of Address Verification Systems

Customer and business demands for effective verification are evolving on a day-to-day basis. Address verification proves to be beneficial for businesses in numerous ways. Following are the key advantages of address verification systems. 


  • Businesses require address verification for the purpose of fraud prevention. Address verification is something that cannot be neglected in any manner. Online address verification combats online identity fraud for enhancement of business’s reputation and for better risk assessment. 


  • Without a doubt, return shipments are one of the immense losses for any existing business. This issue occurs repeatedly without address validation. The progressing number of these returned shipments can be effectively controlled and reduced only because of address verification. 


  • Businesses have to perform address identity verification checks for ensuring the security of individuals according to FATF recommendations. Address validation can assist online businesses to comply with guidelines effortlessly.  


  • Address verification assists in the enhancement of customer experience. This also assists in keeping the records updated to the date of all of the potential customers.  

Industries That Require Address Verification 

Below is the type of business in which address verification solutions play a crucial role for risk assessment and customer due diligence. 

  • E-commerce Industry

Returned shipments mostly occur in e-commerce, resulting in not only money wastage but also time wastage. Address verifications solutions and services assist in the detection of fake addresses and help in product delivery on time at the appropriate address. 

  • Financial Infrastructures 

Illicit money transfers and money laundering activities usually occur in financial infrastructures. Hackers use fake addresses in order to create fake accounts. Address verification checks help in the detection as well as prevention of illicit happenings. 


Fraudulent activities, chargebacks, and account takeover is progressing with the speed of light in this modern age of technological advancements.  It is high time for businesses and financial infrastructures to integrate themselves with such products and services that provide effective and efficient address verification solutions. This incorporation is crucial for the enhancement of security protocols and to combat illicit money transfers as well as chargebacks. Hence address verification enhances the KYC process in the best way possible in all sorts of businesses.