SMS verification isn’t a perfect solution to fraud prevention. Using tactics like SIM swapping, social engineering, and other methods of account takeover, fraudsters can gain access to a victim’s phone number or text messages.
As a result, SMS verification adds an extra step to the checkout process that may cause frustration for both merchants and consumers. However, it is still an effective tool to use in a layered security strategy.
1. Reliability
SMS verification involves sending a unique code to the customer that they type into their device to verify their identity. This helps to ensure that only authorized users are using a device to access an account or make a purchase. It’s also a quick and convenient process for customers.
However, it’s not a secure method of authentication on its own. It’s not as strong as other methods of verification, such as biometrics or hardware tokens. It’s recommended that merchants use SMS verification in conjunction with other security measures.
For example, a good approach is to use SMS authentication as the second factor in two-factor authentication (2FA). Passwords are known to be the least secure method of authentication, so it’s important to add another layer of protection for sensitive data and resources. Passwords can be guessed, stolen, or bought on the dark web, while other factors like SMS are hard to crack. This is one of the many reasons why it’s so popular to use two-factor authentication on your business website and apps.
2. Cost
In addition to the fact that online sms verification service are very affordable (compared to other methods of authentication like hardware tokens), they are also convenient for users. All they have to do is enter the 6-digit code sent to their phone and then verify their identity.
It’s a popular and effective way to make sure that only verified buyers are able to access or complete a transaction. However, as a merchant, you might find yourself rejecting some legitimate buyers, especially if you rely too heavily on this method of security.
If you want to avoid this problem, consider adding another authentication option for buyers who don’t have their phones on them or are unwilling to share their personal number. Some websites offer services that allow users to bypass SMS verification using disposable phone numbers, but this is not recommended as it could lead to security issues. This can include unauthorized charges to the user’s account and may even be used as a way to steal the buyer’s identity.
3. Convenience
SMS verification is a convenient way to authenticate users, especially for people who use their phone for multiple accounts or services. Since most people have their phones with them at all times, they can easily receive a verification code and enter it to access their account. This makes SMS verification very convenient for both users and merchants alike.
SMS authentication is also popular because it’s more secure than using passwords alone, which can be compromised by poor storing practices, weak password algorithms, and phishing scams. It also provides more security than using just two-factor authentication (2FA).
However, it’s important to choose a trusted SMS verification service that has high-end encryption. Otherwise, attackers can intercept unprotected messages and steal one-time passcodes to gain access to user accounts. This can be done at scale and fast, which can have serious repercussions for businesses that depend on SMS 2FA to protect their customer data. You should also choose a service that offers top-notch support in case something goes wrong.
4. Security
As a second-factor authentication method, SMS verification helps keep buyer information safe from thieves. For instance, if a fraudster gains access to the phone number on file for a website or app, they won’t be able to enter the verification code without the correct mobile device. This will prevent them from posing as the user, taking over their account, or even forging tickets that are linked to the user’s identity.
Conclusion:
However, it’s important to note that SMS is not a foolproof security measure, and should be used in conjunction with other fraud tools and buyer validation methods. In addition, SMS can add a bit of friction to the checkout process, and some users might be put off by this. However, this is becoming less and less common as buyers become more familiar with fraud prevention and encounter two-factor authentication more often. This is something that individual merchants should balance based on their own fraud exposure and customer behavior.