SMS verification is a security feature that allows users to use their mobile phone number as an additional layer of authentication when logging in, making purchases or changing account information.
This is a popular method for online retailers to verify new customers’ phone numbers and prevent fraud. But it is not without its limitations.
Verification Codes
SMS verification codes are a popular way to add a two-factor authentication (2FA) requirement to a user’s account. They’re easy to use and require minimal human intervention.
As a fraud prevention method, though, SMS verification isn’t as robust or effective as other alternatives such as time-based one-time passwords (TOTP). It also presents several vulnerabilities that hackers can exploit to compromise a user’s account and sensitive information.
Because of this, SMS verification should only be used as part of a comprehensive anti-fraud strategy that uses other risk-scoring and buyer validation tools. This helps to reduce the friction that customers may experience when trying to purchase a product and increase sales conversions.
Messages
SMS messages are an effective way to send promotional text marketing materials to customers, such as special offers and coupons. However, it’s important to be aware of privacy and data protection laws when sending these messages.
SMS messages are encrypted by a device-wide encryption system that users have configured on their phones. These messages are sent and received on a cellular network using the signaling system 7 (SS7) protocol, which was introduced in 1984.
SS7 is an old and vulnerable protocol with many holes that can be exploited by malicious actors. Hackers could use phishing attacks or man-in-the-middle (MITM) attacks to intercept and read the message.
Because of these vulnerabilities, merchants should only use SMS verification as a secondary authentication step after other fraud prevention methods are taken into account. This will help them reduce costs and avoid deterring legitimate buyers.
Sender IDs
SMS sender IDs are a way to verify businesses, build brand awareness and increase customer trust. They can also be used to prevent message spoofing by fraudsters.
Alphanumeric Sender IDs are up to 11 characters long and can contain both letters and numbers. They can be customized to match your company name or brand and are used for one-way text messaging.
In contrast, short codes are 5-6 digits long and are often used for high-volume and time-sensitive messages. They are not scalable and can be blocked by local carriers.
Sender IDs are usually a combination of letters and numbers, but each country and network has their own rules. In some countries, you must pre-register your Sender ID with the local GSM operator before sending.
Encryption
The standard way to verify someone’s identity is through the use of a one-time password (OTP) that is delivered via SMS. This form of two-factor authentication is used by many online sms verification service to verify users’ identities and help prevent common types of fraud.
However, SMS isn’t a secure method for this kind of verification. Because of its lack of encryption, it is easily intercepted and stored by attackers with the right equipment.
Furthermore, SMS is vulnerable to a variety of attacks, including social engineering and SIM swapping fraud. Using these tactics, attackers can obtain the phone number and text messages of the person they’re targeting, giving them access to their accounts and money.
This is why it’s important to understand how SMS Verification Works and how it fits into an overall fraud prevention strategy. By integrating it with strong password requirements, anti-fraud tools, blacklists and other fraud prevention measures, you can ensure that you’re using the best possible security.
