Sumsub ditches IP-based geolocation, launches GPS-based Proof of Address solution

Rick Steves

Sumsub has added GPS-based verification to its Proof of Address solution, which helps businesses stay compliant and fight digital fraud. Aimed at the fintech market, where companies are often obliged to verify user residence, the GPS-based feature allows companies to verify addresses as quickly and conveniently as possible. The firm argues that standard proof of address […]

Sumsub has added GPS-based verification to its Proof of Address solution, which helps businesses stay compliant and fight digital fraud.

Aimed at the fintech market, where companies are often obliged to verify user residence, the GPS-based feature allows companies to verify addresses as quickly and conveniently as possible.

The firm argues that standard proof of address (PoA) verification can be problematic because PoA is confirmed by submitting documents such as bank statements, utility bills, voter registration, mobile operator bills….and some of these documents have no security marking or photos, making them prime targets for forgery.

Additionally, Sumsub states that many of these documents are non-standardized and may require additional checks, which leads to longer onboarding time and, consequently, lower pass rates.

Given that regulators in the crypto and trading sectors demand that businesses confirm user addresses for the sake of AML efforts, Sumsub has found a way to ensure companies keep user conversion high while staying fully compliant with regulations.

GPS, Wi-Fi positioning, and Cell tower trilateration

Sumsub’s GPS-based PoA offers fast, simple, and secure address verification flows for global clients in accordance with all applicable regulatory requirements.

Why GPS-based? Because  IP-based geolocation may not be enough for compliance purposes. The new feature lets Sumsub customers perform PoA checks instantly, while keeping the option for document-based verification open.

Peter Sever, Co-founder and Chief Strategy Officer at Sumsub, said: “First, the system asks the user for access to their geolocation to meet GDPR requirements. Then it detects the user’s location using GPS, Wi-Fi positioning, and Cell tower trilateration to provide the most accurate result. In case the user doesn’t want to share their location, or if their device doesn’t support GPS, it’s possible to continue on another device, or go through a traditional PoA verification process by uploading documents. Using geolocation for PoA verification dramatically increases conversion rates since this step can be passed in just a few clicks. It also speeds up the verification process as the solution automatically determines if the address falls within the excluded countries list.”

Sumsub launched Know Your Business solution

Sumsub has recently launched a Know Your Business (KYB) solution for enterprises to maximise their B2B onboarding in a fully automated, data-driven, compliant and risk-free manner, while dramatically reducing the complexity, resources, time and manual processes currently experienced by businesses while managing their KYB relationships.

Like KYC, KYB checks are mandatory for many firms dealing in mobile payments, online banking, crypto marketplaces and crypto services. The solution combines premium KYB data services, an anti-fraud engine, automated workflows and a centralised view of verifications, corporate structures, documentation and more. The startup already helps companies onboard online clients and comply with AML/KYC regulations with AI-driven identity verification tools.

Sumsub’s business model is based on adjusting verification and identification services to global compliance requirements, including the European Banking Authority (EBA). Businesses can perform granular business underwriting worldwide as its methodology follows FATF recommendations—the international standard for AML/CTF rules.

On the regulatory front, Sumsub’s offering helps firms safeguard their reputation and avoid penalties if they fail to perform KYB checks. They can choose from pre-built options and automate processes, or manually customize one to meet their unique verification flows and specific compliance needs.

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