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Middesk Launches Address Risk Insights to Combat Fraud

In an era where identity fraud threatens businesses more than ever, Middesk, recognized as a leading business identity platform, has released a groundbreaking feature: Address Risk Insights. This enhancement is a pivotal addition to their Know Your Business (KYB) product Verify and the risk scoring solution Signal. With nine out of ten enterprises encountering identity fraud annually, according to research conducted by Sapio Research, the need for rigorous monitoring and verification has never been more critical.

Address Risk Insights aims to mitigate the risk enterprises face during customer onboarding and ongoing monitoring by evaluating the legitimacy of a business’s address. This innovative tool is designed to catch potential fraudsters early in the process, ensuring that financial institutions and other organizations only engage with trustworthy customers.

Address Risk Insights is pioneering in the KYB space, providing businesses with essential information that helps them comply with Customer Identification Program (CIP) and Customer Due Diligence (CDD) requirements. By flagging addresses linked with known risk factors at an early stage, the tool strengthens the overall onboarding process, safeguarding organizations from monetary losses, compliance penalties, and unwanted involvement in illicit activities.

Kyle Mack, Co-founder and CEO of Middesk, expressed pride in the launch, highlighting that this new feature is being offered at no extra cost to existing customers. "Our proprietary insights are unparalleled in quality and recency, enabling our customers to meet regulatory and compliance demands while staying one step ahead of fraudsters," Mack explained.

The power of Address Risk Insights lies in Middesk's extensive proprietary database, which includes over 40,000 registered agents across the United States. This database is complemented by authoritative U.S. government business data, international address information, and high-quality alternative data. By evaluating addresses tied to fraudulent behaviors—such as those that depend on mail services or registered agents rather than a physical site—Address Risk Insights helps organizations maintain a clean and legitimate customer base.

Evaluating Address Risk Levels

The system categorizes risk levels into low, moderate, or high, based on several characteristics and attributes. The methods used include:

• - Risk-Based Verification: Identifies at-risk locations by validating the address, determining if it is U.S.-based or international, and confirming its deliverability, thus ensuring the authenticity of U.S. business addresses.
• - Registered Agent Detection: Utilizes Middesk's substantial database of registered agents to pinpoint addresses associated with fraudulent activities.
• - Mailbox Designations: Flags high-risk addresses like private mailboxes, P.O. boxes, and other similar locations, based on postal service data.
• - Location Frequency: Monitors the number of businesses linked to a specific address, revealing potential fraud risks.

Address Risk Insights is now available for existing Middesk customers, with plans to offer a group demonstration on December 10. This is an excellent opportunity for businesses to learn more about utilizing this innovative tool effectively.

About Middesk

Middesk is revolutionizing the standards of business verification, risk assessment, and compliance. They empower financial institutions and businesses with identity-as-a-service APIs, making processes for KYB, credit assessment, and tax registration exceptionally fast—updating information in days instead of months. Over 500 companies across sectors such as fintech, banking, and insurance rely on Middesk to help verify and grow their operations safely. Praised by Forbes as one of the top U.S. fintechs, Middesk stands out with its commitment to innovation and security. To learn more, visit middesk.com.