Unconventional Frauds That Necessitate an Address Verification System

address verification system

The address is a crucial subset of someone’s identity information that can be stolen, copied, or tampered with in various ways. Address fraud was prevalent before but with the arrival of the COVID-19 pandemic, it has become ever more pronounced. People working and shopping from home have made it a target for fraudsters to use for identity theft. The various fraudulent methods that involve address include change of address, using the old address, fake account openings, etc. These issues only enhance the importance of verification of address.

What is Address Fraud?

Address fraud is a type of criminal activity in which the fraudster uses a stolen or forged address to gain some personal benefit at the expense of the victim. This crime may include an address that does not exist in the first place or it is an old verified address that is now in use of someone else. To curb this type of fraud, and address verification system, either manual or automated, is performed.

4 Unconventional Places Where Address Fraud is Committed

Apart from financial institutions, postal services, and third-party logistics companies, address fraud can be committed in these unconventional places.

School Admissions

Moreover, parents of students may tamper with their address information so to get admission into a school that is out of their jurisdiction. For instance, public schools demand that a particular student lives in the area where the school is located. So, parents lie about their address information to get their children into a place other than they live. Thus, it becomes necessary for schools to employ an online address validation system so that only deserving candidates are considered for admission.

Voting in Elections

Address fraud also becomes prevalent around elections. Election fraud is a serious issue whose effects are wide-ranging. Fraudsters will do anything to get votes and win elections even if it means bending the rules. In this type of fraud, people use addresses to vote in a constituency other than their own. Therefore, to make the election process transparent and ensure that only the right candidate wins, an automated address verification system is the need of the hour.

Applying For Driver’s License

The need for an automated address verification system in DMVs is growing. Usually, the address is confirmed through manual methods which can take a lot of time and are prone to inaccurate results. As there are varying degrees of rules and regulations enforced in different regions. So, people use fake addresses to acquire a driver’s license from another state where there are less stringent rules. For instance, in some regions, people above the age of 60 cannot apply for a driver’s license for the first time. Moreover, some states like Illinois, US require newly shifted residents to get a local driver’s license within 60 days. The absence of a local state driver’s license after the said period is considered an offense.

Evading Tax

Tax evasion is a serious dilemma for the world economy right now. It incurred losses of  billions of dollars to the global GDP each year. There are multiple ways to commit this crime but people can manipulate information like their address for evading tax. They present their address belonging to a low rent place in a low tax jurisdiction. They claim that address as their official one even if they don’t reside there. If address verification systems are employed by financial institutions, tax evasion can significantly be reduced. 

How to Choose the Right Address Verification System?

There are various identity verification solutions operating in the market right now. So, choosing the right service provider is important. You can go for the one that readily verifies the identities and their documents through advanced technologies. But, one would ask, what should be considered as an advanced technology?

Well, don’t worry, we have got you covered. You can acquire the services of an address verification provider that uses AI and ML models to verify documents. Moreover, it must have biometric verification technology to verify the identities of its customers digitally. Together with this, you should consider the service that is public with their accuracy rates. Their accuracy rate of results should be around 98-99%. With these traits, you can rest easy that people are not defrauding your business with address fraud.