Glossary  Address Verification 

Address Verification 

What is address verification?

Address verification is a process of confirming that the physical address provided by a customer is valid and authentic. It is an essential part of identity verification, helping to ensure that individuals are who they claim to be and that their address information matches official or trusted records.

Address verification vs. address validation: what’s the difference?

Although the terms are often used interchangeably, there is a key difference between the two processes.

Address validation focuses on checking whether an address is formatted correctly according to postal standards or exists. For example, it ensures that the street name, postcode and city correspond to real address structure.

Address verification, on the other hand, goes a step further by confirming not only that the address is formatted correctly, but also that it actually belongs to the individual who provided it. This usually involves cross-checking with official databases or verifying proof-of-residence documents.

How does address verification work?

The process of verifying an address can vary depending on the industry and regulatory requirements, but generally combines multiple methods. 

Document-based verification:
Customers may be asked to submit proof of residence, such as utility bills, bank statements or official government correspondence. Advanced software then extracts and validates the address details from these documents.

Database matching:
The address provided by a customer is cross-checked against postal services, government registries and commercial address databases to ensure accuracy.

AI and fraud detection
Identity verification solutions use machine learning algorithms to detect inconsistencies such as mismatched geolocation data or falsified documents. This reduces the risk of fraudulent information being accepted.

In practical terms, address verification not only validates a location but also connects that location to a verified individual, making it a cornerstone of digital onboarding and fraud prevention.

Where is address verification used?

Address verification is used across a wide range of industries where strict and secure identity verification is critical.

• In financial services and banking, it is used to confirm customer addresses for KYC (Know Your Customer) and AML (Anti-Money Laundering) compliance.
• Telecommunications: validating subscriber information during SIM registration or contract sign-ups.
• Insurance and pension funds: ensuring accuracy in customer records for claims and compliance. 
• E-commerce and retail: preventing fraudulent transactions and ensuring accurate deliveries.
• Government and public services: supporting the issuance of secure identities, such as eIDs or passports.

In each of these cases, a verified address supports compliance and builds trust between companies and their customers.

How PXL Vision uses address verification

Address verification is an additional step in the digital identity verification process.

PXL Vision can verify the address information provided by the user by matching it to the addresses held in the Swiss Post database. As Switzerland's primary postal service, Swiss Post's database is highly reliable and secure, making address verification seamless and convenient.

The manual address check is also part of the Manual Review add-on process offered by PXL Vision. During this process, the address is verified using a document-based method. As an additional step, users are asked to upload a document containing their address, such as a utility bill, which will then be verified manually by staff. Staff can then manually verify, edit, approve or reject the data.

This hybrid process is scalable and supports high conversion rates and secure digital interactions, rather than being a slow manual task.

Conclusion

Address verification is a crucial component of modern identity verification. It ensures customer information is accurate, prevents fraud and supports regulatory compliance across industries. By implementing advanced, AI-powered solutions, companies can establish secure, efficient and reliable digital processes without compromising the user experience.