Using USPS Address Verification to Prevent Fraud

November 10, 2014
USPS Address Verification
Tags

While it's an unfortunate truth of of today's e-commerce world, it is one that cannot be ignored: Fraud is ever-present in online transactions. The expense of unnecessary shipping costs and human resources, disgruntled customers, and the time it takes to investigate disputes adds up. And the damage to a company's brand may result in untold amounts of lost sales.

Using an address verification service (or AVS) as one of the tools in your fraud management toolbox is a smart and cost-effective move.

What is AVS?

A USPS address verification system is a software-based system that compares a submitted address to an authenticated USPS address that is stored in a database. If the submitted address closely matches the authenticated address in the database, then the submitted address is deemed to be valid. If the submitted address does not closely match the address in the database, it is flagged as invalid.

Using AVS to Prevent Fraud

Using AVS data in conjunction with a customer's IP address can be a useful way to evaluate the validity of an online order. There are a number of services that can provide you the geographic location that corresponds to the IP address of the customer's computer.

Address Location

When the customer submits their billing address or shipping address, the AVS will verify if those addresses are valid.

IP Location

If the IP address' geographic location appears to be in reasonable proximity to the customers' AVS verified address, it could be reasonable to assume that the order is valid. If the IP address is located a considerable distance away from the AVS address, there is a possibility that the order could be fraudulent. Further verification of the validity of the customer's order could be merited.

Choosing the Right System

While an address verification service should not be the only tool used in fraud prevention, it can be a useful one. Various USPS address verification services are available for use by ecommerce sites. In addition, Smarty provides free address lookups for ecommerce sites to test their system.

Subscribe to our blog!
Learn more about RSS feeds here.
Subscribe Now
Read our recent posts
Understanding the Key Players in Data Governance: Roles and Responsibilities
Arrow Icon
Successful data governance requires more than just rules and policies. It requires a dedicated team of professionals with clear roles and responsibilities to effectively manage and protect the data. We recently published “Data Governance: An Executive’s Survival Guide”, an ebook that you can download right now. In it you’ll find information on data governance and other important factors in the address data game. The following is an excerpt on the section about the different roles and responsibilities involved in data governance.
Data Quality: The Foundation of Successful Data Management
Arrow Icon
We recently published an ebook titled “Data Governance: An Executive’s Survival Guide”. The following is a sampling of the chapter on data quality. The Value of Data Quality Data is the lifeblood of modern organizations, providing crucial insights that can drive decision-making and innovation. However, the value of data is only as good as its quality. Poor quality data can lead to costly mistakes, misinformed decisions, and reputational damage. That's why it's essential to ensure your organization's data fits its intended purpose.
The Importance of a Data Governance Framework
Arrow Icon
We're thrilled to share a sneak peek of one of the sections in our latest ebook, "Data Governance: An Executive's Survival Guide. " This guide is a must-have for anyone with a database, and we have packed it with an abundance of critical points and examples that will enlighten and entertain you. But wait, there's more! If you want to delve deeper into the world of data governance, you can download the full ebook for free. Trust us, it's chock-full of information that will make you the talk of the town (or at least the talk of your office).

The leader in location data intelligence

Ready to get started?