Your user base is essential to the success of your business. Protecting your users and your business from fraud is key to ensuring that you continue to grow this valuable asset. In fact, a recent study conducted by Ponemon Institute* reported that the average value of a user base increases by 44% when investments are made to prevent malicious activities against users. Phone verification is the most reliable and effective way to apply vital account security measures.
By attaching a unique and valid phone number to each end-user account, you protect your brand and your Web and mobile app users from fraud – assuring them that their confidential information and assets are safe along their user journey. Here are 8 ways phone verification can help your Web or mobile app.
1. Confirm End-User Identities Through an Established Trust Anchor. When an end-user enters their phone number at account registration or new mobile app download, you can validate that they are who they say are–before they enter your ecosystem–by connecting with the mobile device associated with that phone number. Once you have a verified phone number tied to an end-user you have established their mobile device as a global trust anchor for secure access throughout the account lifecycle. A user’s mobile phone is now an intelligent, connected identity device that can be used to confirm their identity for the lifetime of their account.
2. Prevent Fraud and Stop Bulk Account Creation. To combat fraud, real-time security intelligence and reputation scoring can be provided during phone number verification. Through this analysis of the phone number, you can get valuable data attributes and risk assessment. This enables you to confirm the account registrant is not a bot or spammer bulk registering thousands of fake accounts. 82% of companies surveyed* reported that fake users are a significant problem. They create fraudulent accounts and wreak havoc spamming legitimate users–causing companies to lose 10% of their user base.
3. Simplify Account Registration. 58% percent of survey respondents* said that user convenience was “most important” to their fraud prevention strategy. Use of traditional email and username/password account identity verification is continuing to decrease. With phone verification, the account registration process can be simplified as an end-user just provides their phone number and, once it’s confirmed, they can begin using the website or mobile application.
4. Gain User Trust With Two-Factor Authentication. 68% of consumers polled in a 2015 Consumer Account Security Report** responded that they want companies to provide an extra layer of security. 80% said they are worried about their online security. You can protect end-user accounts from compromise with an additional layer of security beyond their password by offering two-factor authentication through their phone numbers. A one-time verification code sent via SMS or voice message or through your mobile app can authenticate a known user or verify a transaction. Phone verification provides your business with the ability to assure your customers that their accounts are safe and secure.
5. Reduce Costs and Deliver Secure Account Recovery. Insecure account/password recovery methods are one of the most exploited channels for account compromise and can be very costly for your business. Gartner estimates the average cost for a password-related helpdesk inquiry is over $10 and they estimate a 70 – 90% cost savings by implementing a self-service password reset solution. Having an established “trust anchor” through the end-user’s number and device streamlines and secures this process by providing an out of band (OOB) channel for ensuring the account is being recovered and accessed by the legitimate user… and not a fraudster.
6. Increase the Value of Your User Base. Phone verification helps stop fake users and bad actors from entering your ecosystem. According to recent research*, when organizations are able to eliminate fraudulent accounts, the value of their user base increases by up to 44%.
7. Utilize the Perfect Identity Technology. Wherever we go, our mobile phones are never far away. Nine in 10 consumers keep them at their fingertips always or most of the time, 6 in 10 haven’t changed their phone number in the past 5 years and 64% of people consider their numbers a key part of their identity. We are literally, physically and emotionally attached to our mobile phones. They’re the ideal trust anchor to verify who is accessing our accounts or making transactions.
8. Join 20 of the Top 25 Global Web Properties. Phone verification is quickly becoming an industry standard. Leading global Websites and apps (and 9 of the top 10 in the US) are securing their users through the mobile phone.