Fight fraud with accurate location data

When it comes to payments and identity verification, a person’s address is an important data point used to verify their identity – and is a key part of fraud signals and fraud data models.

In today’s global, interconnected and digital-first world, cross-border payments are becoming more common. As the frequency increases, they expose the shortcomings of the traditional payment, fraud and identity solutions. As you bring your footprint across borders at scale, improving address verification rates has become critical to reducing friction in this process.

The real numbers behind the efficiency improvements are quantifiable. It gives fintech providers and businesses that trade internationally greater security and predictability in their fraud data models.

Fraud knows no borders: the importance of address data in cross-border payments

As financial institutions navigate this new landscape, addressing the challenge of fraud detection and prevention will be critical to maintaining customer trust and security. This is particularly challenging because, just as technology evolves, so do the fraudsters’ methods.

Loqate helps fintech companies meet the moment by fighting fraud without compromising the customer experience. While an address is only one component of a fraud signal, address verification is a critical element in helping businesses build their data model. The net result is higher match rates, which leads to reduced false positives.

By using more accurate data signals, you will improve your data models, deliver more predictable match rates and reduce the incidence of false fraud alerts. In short, address verification is a key piece of the fraud prevention puzzle.

The complexity of global addresses

With over 130 different address formats in 249 countries and territories, address verification is a challenging task. Only a handful of countries have a standard postal address format. Many regions around the world use different ways to describe a location – such as neighborhood names, points of interest or directions to a place, and inject noise into the data.

Loqates API solves this problem by combining the richest globally curated data from various sources, including postal, geospatial and local sources around the world. This, combined with a sophisticated matching and verification engine, ensures the highest possible match rate and lift. The result is verified address data, analysed, standardised, enriched and structured into the most appropriate local format.

The bottom line is that businesses across industries need the precision and reliability they need to make location data-driven decisions, deliver superior customer experiences, help prevent fraud, and enable cross-border payments and commerce—globally and at scale.

About the author:

Rob Heidenreich is Vice President of Global Sales and Partnerships at Loqate – a GBG solution – where he primarily focuses on Loqate’s global market expansion in the fintech, payments, fraud/identity industries. Prior to joining GBG, Rob was with Mastercard where he served in Mastercard Advisors, Mastercard’s professional and data and consulting division. Prior to Mastercard, Rob held multiple roles at various Austin Ventures-backed companies, and was co-founder and CEO of 360Science.