The automated Business Validation Gateway is designed to separate Consumers from legitimate Businesses, and then validate various business data points to reduce fraud, risk and bogus new account registrations. This Real Time process is accomplished largely by matching and analyzing data points submitted on the registration form, and then validating against several outside premium data sets.
The system takes in Re-gistration Form data, and analyses and cross matches each field entry beginning with the ip address. The system will seamlessly match ip location versus stated location and phone, and then cross match phone to company name and EIN / TIN to the remote EIN Database. Records that pass all these criteria are largely legitimate, with the balance needing some manual authentication before approval.
Business rules will be in place to “score” the validity of the business. Simply asking for some of this information will move non-business users from requesting a business account to signing up for a consumer account, so the incoming volume will drop. All others will pass through the rule set and, based on scoring we define, will either auto-validate or pass to agents for manual follow up. Using the following business rules to validate whether the customer is or is not a valid business will result in roughly 85% of VALID businesses passing through with no manual checks required:
Main User Inputs
- Employer Identification Number (EIN) or Taxpayer Identification Number (TIN)
- Social Security Number (without this, we may miss small businesses that have few or no employees beyond the owner)
- Company Name
- Main Phone Number – Reverse to given . stated Company Name
- Main Business Address
- IP Address of user logging into the site matching to stated GEO
Rules
- EIN and TIN matching to company name
- SSN matching to individual name
- Main Phone Number matching to phone number listings in national business listings or live Caller ID Database
- Main Business Address matching to phone and EIN/TIN information
- IP Address matched using IP Geo-location to ensure that the user is in the area listed and to if the domain is in any way linked to the business
Other optional rules are available, such as matching against Secretary of State Business records, Officer SSN listings, state professional licenses and more. In addition, unlock codes can be sent to direct or cell phone numbers to ensure that the user is able to access the phone number listed.
HISTORICAL MATCH RATES
- EIN Overall Average = 45%
- EIN note: EIN is a Maturity Indicator
- Overall Accuracy Compared to W9 Filings = 84.7%
- (study by Home Depot Finance Integration Auditors)
- Medical = 83%
- Public Companies = 94.2%
- Established Mature Employers 50+ Employees = 61.2%
- Small Employers – Under 50 Employees = 38.1%
- Micro-Business – 10 and Under Employer – Private = 27%
- Micro-Business via SSN & TIN # by Owner Name = 39%
- Overall SSN Match Rate on SSN Reverse = 83%
- Gap Coverage Areas – Micro-Business, new and un-established, single proprietor, EIN and/or under age 27
- Overall Fraudulent Application Reduction = 78%
For more inforamtion please call:
800-229-8280 ext 110
Robin Lahiri, President
robin@libertydata.net
Feinsearchblog 