How to Prevent Address Fraud?
- harrisstarkwork
- Jan 17, 2024
- 1 min read
Criminals use stolen or fake addresses in a wide variety of ways, whether it's to make phony businesses seem more legitimate, enroll their children in better school districts, vote in different states, avoid taxes or insurance rates, or to hide bench warrants. The bottom line is that this type of fraud can have severe consequences for victims and their families.
Address fraud also has devastating ramifications for e-commerce merchants. It can lead to a shattered customer experience, financial losses and legal headaches. The best way to combat this type of fraud is by using an identity verification solution that standardizes address data so suspicious profiles are detected and flagged.
While the USPS has implemented procedures to help prevent false changes of address from being filed, criminals continue to exploit weaknesses in the system. According to the Postal Inspection Service, the number of cases involving change of address fraud grew by more than 266% between 2020 and 2021.
One of the most common ways that criminals commit this type of fraud is by filing a fraudulent change of address form online. USPS allows customers to change their address online for a small fee, but many people simply fill out a paper form at their local post office branch.
This is how criminals get your new address and then start to redirect mail from your home, often thousands of miles away. This can include letters from banks, credit card companies, investment firms and more. It can also be a great way to steal your identity by getting you to send money or personal information to scammers.
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