With the fast development of technology, there is a pressing need for automated solutions for business processes. One highly required automation is income verification.
Income verification is an essential part of running a business, and as an employer, it’s critical to provide secure, timely income and employment verification services. Whether you’ve used a third-party vendor to verify employment records or you’re looking to invest in this service, let’s explore the benefits.
What are Automated Income Verification Services?
Automated income verification services allow property managers, lenders, government agencies, and other organizations to instantly verify an individual’s employment and income information. Rather than relying on applicant-provided pay stubs or tax returns, which can be falsified, these services access employment and income databases to retrieve current, verified data.
This eliminates the need for time-consuming manual verification processes like calling previous employers or waiting for mailed pay stubs and tax documents. The data is delivered directly from the source, so verifiers can trust it is current and accurate.
Benefits of Income Verification Services
Employee Data Security
Automated services enhance employee data security in several ways. First, employment details are accessed directly from the employer’s records rather than relying on documents that the applicant could tamper with. This reduces fraud risk.
These services also eliminate the need for applicants to hand over sensitive documents like pay stubs, W-2s, and tax returns to verifiers. This protects personal financial data and reduces the chance of identity theft. Finally, leading income verification systems use multilayer data encryption and advanced fraud monitoring. This keeps employee records protected while in transit and at rest.
At Vault Verify, we are serious about protecting employee data, and we implement industry-leading verification solutions such as high-tech encryption, secure data centers, and security protocols that eliminate “send-and-store” file feeds each pay period.
Reduced Fraud Risk
Income verification services greatly reduce the risk of application fraud. Common application fraud includes exaggerating income, falsifying pay stubs, altering tax return documents, and providing fake landlord references. This results in losses for lenders, landlords, insurers, and government agencies.
Automated services access applicant income data directly from verified sources. This bypasses fraud-prone manual verification methods and ensures organizations get current, accurate applicant employment and income details.
Save Time and Money
Manual income verification processes via phone, fax, mail, and email are time-consuming for verifiers and applicants. Automated services deliver instant results, saving administrative time, interruptions, and overhead costs for HR departments
Applicants also benefit from fast verification. Income details can be confirmed within minutes rather than days or weeks, leading to quicker application approvals.
The speed and cost savings of automated income verification services make them attractive for high-volume verifiers like property management companies, mortgage lenders, government agencies, and insurance providers.
Choose Vault Verify
At Vault Verify, we stand alone against the competition. Our goal as an income and employment verification provider is to deliver accurate data with better protection. We automate requests for verification of income and employment using real-time API integration with most payroll and HCM platforms. Plus, we only pull a single employee record on demand, as authorized, at the time of verification. Due to the real-time nature of our integration, we eliminate mass movement and storage of your employment data, reducing the potential for data liability by over 99%.
There’s a reason Vault Verify has a 99% client retention rate. When you need us, we are here for you, and you can trust us as your reliable, secure verification provider. Benefit from our outstanding customer experience today, and request a sales demo.
Frequently Asked Questions
What is an income verification service?
An income verification service provides a fast and secure way for businesses to verify an individual’s employment status and income. These services allow HR departments, lenders, landlords, and government agencies to confirm applicant information used for loans, leases, benefits eligibility, and more.
Why do companies outsource income verification?
There are several key reasons companies choose to outsource income verification:
- Efficiency: Manual verification can take days or weeks of back and forth with employers. Outsourcing automates the process for near-instant results.
- Compliance: Income data directly from payroll providers helps ensure legal and regulatory compliance.
- Data accuracy: Up-to-date databases provide more reliable applicant information than self-reported data.
- Cost savings: Automation reduces the need for extensive HR/lending department resources to verify applicants.
Is an income verification service safe?
Reputable income verification services like Vault Verify use industry best practices to keep your data secure, such as:
- Encryption of all applicant information
- Secure online portal access requiring unique user credentials
- Compliance with regulations like FCRA, GDPR, and CCPA
- Secure data centers with limited employee access
- Deletion of applicant information once verification complete