User verification is essential for all companies who conduct online business. By validating the identity of users, organizations can reduce the chances of fraudulent activities, unauthorized access, and data breaches.
One of the most common ways businesses verify their users is by sending SMS one-time passcodes (OTPs) as part of their two-factor authentication (2FA) and multi-factor authentication (MFA) workflows.
With SMS Verify, all businesses need to do is make a request to our API with the phone number of the end user, and we can take care of the rest. By integrating Telesign’s SMS Verify API, businesses can strengthen and simplify their verification processes, reducing security threats and manual efforts associated with identity verification.
The most common ways Telesign customers use our SMS Verify product are to:
- Verify new users before account creations
- Verify existing users from login to sign out
- Prevent account takeover (ATO) attempts
- Confirm high value transactions
In this article, we’ll provide an overview of how companies use SMS Verify for these purposes.
Verify new users before account creation
SMS Verify enables businesses to verify new users before account creation by sending a unique, time-based OTP to the user’s mobile device via SMS.
Users are prompted to enter the verification code during their registration process, guaranteeing they are providing legitimate contact information and have access to the phone number they provided.
The codes generated by SMS Verify are valid for a short duration, ensuring the timely completion of the registration process.
SMS Verify offers real-time verification results, allowing businesses to make immediate onboarding and account creation decisions based on the code’s validity.
Verify existing users from login to sign out
SMS Verify allows businesses to verify their existing users throughout the customer journey.
When a user requests to log in to their account or make a significant account change, such as modifying personal contact details or the account password, businesses can use SMS Verify to send an SMS OTP to the user’s phone number on file.
The SMS OTP helps validate user identity before processing and completing the request.
Companies that handle sensitive personal and financial information on behalf of their users, including finance, e-commerce, and social media companies, would particularly benefit from leveraging SMS Verify to send and process SMS OTPs before allowing account changes.
Prevent account takeover attempts
SMS Verify prevents several types of account takeover attempts, including:
- Phishing protection: Account takeover attempts often involve phishing, where attackers trick users into revealing their credentials on fake websites. By incorporating SMS Verify, even if users fall for phishing attempts and provide their login credentials, they still need the verification code sent to their mobile device to complete the authentication process.
- Credential stuffing prevention: Attackers commonly exploit username and password combinations obtained from data breaches to gain unauthorized access to user accounts. With SMS Verify, even if attackers possess valid credentials, they cannot proceed without the unique verification code sent to the account owner’s mobile device.
Through these preventive measures, SMS Verify acts as an effective barrier against various account takeover techniques, protecting user accounts from unauthorized access and security threats.
Confirm high value transactions
Businesses can mitigate fraud and financial losses by using SMS Verify to validate a user’s identity before processing a high value online transaction. This is particularly helpful for companies who provide financial services, including Fintech organizations and neobanks.
When a user attempts to complete a high value transaction, such as a large online monetary transfer or purchase, businesses can use SMS Verify to send an SMS OTP to the phone number registered to the account. If the verification code is not properly entered before the expiration period, the business can reject the transaction request.
By leveraging SMS Verify for high-value transactions, businesses can prevent fraud and build trust with their customers by demonstrating their commitment to robust security measures.
Try SMS Verify with a free trial
You and your developers can try SMS Verify with a free trial account. After signup, you’ll get instant access to an API key and complimentary test credits to send SMS OTPs to test phone numbers.
