Whenever someone tries to open a new bank account, or complete a transaction, to get verified they have to provide two documents. The first one is a proof of identity and a proof of address document. Financial institutions and other organizations ask for identity and address documents to verify and establish a person’s identity. These documents are also required to comply with local and state regulations.
However, proving your identity and address is not easy for everyone. Over the years, proof of address fraud has increased. The rise in technologies has led to an increase in fake and altered identity and address documents. Documents can be easily altered and fraudsters try to trick banks and FIs to get their bank account or mortgage approved.
Usually, people who try to sign up for new bank accounts, mortgages, or any other financial service, don’t have an idea about what documents can or can’t be submitted as proof of address.
What Documents Count as Proof of Address?
Based on the financial institution, location, and jurisdiction, there may be slight changes on what an institution will accept as a proof of address document. Some of the most common proof of residency examples are:
Banks, asset management companies, insurance companies, and other financial organizations will ask for one of the aforementioned document types. There are some other document types that can be used as a proof of address document.
Alternate Document for Proof of Address Verification
Apart from the documents mentioned above, certain document types can be accepted as valid proof of address by institutions. These documents are accepted only if the address is mentioned on them.
Of course, the same document type can’t be used to confirm both the user's identity and proof of address. Let’s say that a person submitted a bank statement as a proof of address document, another supportive document will be needed to check the identity of the person.
What Documents Aren’t Accepted as Proof of Address?
There are a variety of documents that aren’t enough to verify a person’s proof of address. Here’s a list of documents that can’t be submitted as proof of address.
It is crucial to gather the required documents, not being able to do so can leave room for fraud.
When Does One Need to Request a Proof of Address?
According to AML & KYC regulations and jurisdiction laws, it’s almost always compulsory to submit a valid proof of address to go through a verification process and for signing up for new services. However, the address verification process is becoming monotonous as documents can easily be faked using the latest technologies.
To reduce the risk of fraud, some countries like Hong Kong don’t have proof of residency in their sign-up process. Sooner or later, all the regulations will follow this practice of not verifying proof of address documents.
How to Check a Proof of Address?
Every company has a different process for verifying proof of address, companies usually follow a comprehensive guide that outlines the verification process and requirements of the users.
The verification happens using one of the two methods, it’s either manual or using technology. Manual document verification methods are too time-consuming and leave a lot of room for error. Technological solutions like DIRO online document verification allow banks, financial institutions, etc, to verify documents instantly. It also offers 100% proof of authentication with forensic data which ultimately leads to fraud reduction.