Verification

The word verification in its basic structure means proving the correctness or truth of something or someone.

Verification of individuals and companies happens every day - and in this article we focus on what is perhaps verified most often, namely verification of customer data - and the information that customers often provide companies with; master data, names, addresses and perhaps CPR / CVR numbers.

Why verify businesses and individuals?

It has never been more important and interesting to care about verification - and this is especially true for customer data.

Because if you haven't verified those you do business with, you don't know who you're doing business with, and that can have major consequences for you as a company - both in B2B and B2C business.

Because verification helps ensure that you as a business know who you are doing business with; who they are, if their general information is correct, what their credit rating is, etc.

With a thorough verification of your customers, both private and corporate, you have the best starting point - both in terms of having correct information in your ERP / CRM system, but also legally if legal problems arise in connection with the customer's trade - or subsequently. This is especially true when it comes to debt collection or similar.

By verifying a customer, you also ensure that the customer doesn't pretend to be someone else - and thus possibly receive goods that are subsequently not paid for.

What are the consequences of not verifying your customers?

If you choose to verify your customers when they are created and on an ongoing basis, you ensure that the information you have in your customer system, CRM or ERP system is correct - and that it can subsequently be updated.

If you choose not to verify your customers' information, you run the risk that customer data is incorrect - which means that you may send goods, invoices and the like to the wrong company or person. If you have not initially obtained correct information on a customer, it can often be difficult to update or update the information against the CPR or CVR register, for example.

Secondly, if problems subsequently arise - such as debt collection for non-payment - it can be extremely difficult to pursue the debtor if their information is incomplete or even incorrect.

Which companies and industries should verify their customers' information?

Basically, all companies that provide credit, loans and the like should verify their customers - both at the start of the customer relationship and on an ongoing basis.

If you extend credit to your customers, it's important that you verify your customer's details - to make sure it's actually the customer you're dealing with - you don't want to extend credit to a customer whose details aren't correct, do you?

In addition, there are certain industries covered by the Money Laundering Act, such as accountants, real estate agents, banks and the like - who must verify their customers to ensure that those they deal with are who they say they are.

Get help with customer verification with Qatchr

Qatchr er en online platform, der gør kredittjek, KYC og verifikation af virksomheder og privatpersoner nemt.

Qatchr continuously collects updates from the CVR and CPR registers, making it possible to always have the latest information and generalia when you as a company want to verify your customers' information.

Get a free, no-obligation Qatchr review today and see what we can do for you.