A Look into Fraud Detection thru Phone Authentication and Verification

August 27, 2012 | By | Reply More

Reading time: 2 – 3 minutes

Have you ever come across a website that requires you to hand-in your phone number upon signing-up? If so, then you’re trying to access a secured website that requires it’s users to be genuine. These kinds of websites utilizes high-end fraud detection mechanisms in order to insure that each sign-up is legitimate.

Through mobile phone authentication and verification, their security system can determine whether to accept or reject a sign-up. A mobile number is secure information; traceable and only legit individuals share this data so a company can be assured that most if not all of their sign-ups are genuine.

This can be accomplished by sending a phone call or a text message to a user with a one-time pin code which forces the user to give a traceable piece of information and creates an audit trail. The information passed back into the system is the phone type—landline, mobile, VOIP, Toll-Free, restricted (911,411) and geographic information.

phone authenticationMost global web properties uses mobile authentication and verification like social networks such as Facebook, Skype uses this for phone number addition in user accounts as caller ID, cloud services, payment processors, online gaming, domain registrants, lead generation brokers, eCommerce sites, fraud prevention providers, and advertisers and directories.

Most verification happen in an instant so there’s no need to leave the website during verification while the sign-up page remains open. Integration of these services is normally administered by the web developers through provider documentation but personalized assistance is also given.

When adopting this security feature, always go for the REST API because REST can be transported over an HTTP or HTTPS (secured) connection and is compatible with most web programming languages and technologies.

And if you think that phone verification is only limited to the US shores, worry not because you can use it to verify phone numbers anywhere in the world plus multi-language set-up and message customization.

As more and more users utilize the internet everyday for almost all transactions, large companies have adopted tighter security measures to prevent fraud. While this method works quite well for most, for the meantime, it still remains a challenge for the growing internet community to totally annihilate internet security threats.

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Category: online threats

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