The Power of SMS Verification: Securing Online Interactions

26th October 2023

Businesses want dependable and simple-to-use solutions to safeguard themselves and their clients in the current digital environment, where cybercrime is on the rise. SMS verification services are one approach that uses one-time passwords (OTP) that are texted to a user.

Due to its ease of use and popularity as a means of ensuring secure online interactions, SMS verification has gained popularity among organizations in a variety of industries. It is also a prominent use case for A2P messaging.

This post will discuss SMS verification, its different applications, and how companies may select the best SMS verification provider.

What is SMS Verification?

Sending an OTP SMS to a user’s mobile device through an OTP service provider is the procedure of SMS verification. The user then inputs this OTP to complete a transaction, authenticate themselves for different online activities, and confirm their identity and gain access to a service. The OTP acts as a temporary code that expires after a certain period, ensuring that only the intended recipient can access the information or complete the desired action.

How Does SMS Verification Work?

The SMS verification process involves several steps:

  1.       Customer Raises Verification Request: The customer initiates the verification process by clicking on the “verify” button on the app or website. This could be for activities such as account creation, transaction confirmation, password reset, or login authentication.
  2.       OTP Generation: The backend system generates a unique OTP for the customer’s verification request.
  3.       SMS Delivery: The SMS verification number provider, such as an OTP service provider, fetches the generated OTP and sends it as a text message to the customer’s registered mobile number. The sender ID can be customized to reflect the brand name, increasing recognition and trust.
  4.       OTP Verification: The customer receives the OTP SMS on their mobile device and enters it on the app or website to complete the verification process. Once the OTP is verified, the customer gains access to the desired service or action.

SMS verification offers a secure and efficient way to authenticate users and protect against unauthorized access or fraudulent activities.

Use Cases for SMS Verification

SMS verification as a subset of A2P messaging has a wide range of applications across various industries. Let’s explore some of the most common use cases for SMS verification:

1. Transaction Verification

SMS verification is essential in the financial services industry to guarantee safe internet transactions. Due to the adoption of two-factor authentication (2FA), which is mandated by regulatory bodies, businesses can use SMS verification to authenticate customers before concluding transactions.

By sending an OTP to the customer’s registered mobile number via an OTP service provider, businesses can verify the cardholder’s identity and halt fraudulent transactions.

2. Authorization

In order to obtain authorization, SMS verification is also employed, particularly when using unfamiliar or distant devices to access protected websites or mobile apps. OTPs are frequently required as a second method of authentication on net banking websites, ensuring that users are properly verified before being granted access to their accounts.

3. Password Reset

To prevent fraudulent access to user accounts, businesses often rely on SMS verification for password reset requests. When a user requests a password reset, an OTP is sent to their registered mobile number. The user must enter this OTP to verify their identity before being redirected to the password reset page. This additional layer of security ensures that only the account owner can reset their password.

4. Passwordless Login

To enhance user convenience and eliminate the need for remembering complex passwords, businesses are adopting passwordless login options. Users can utilize SMS verification to replace traditional passwords with one-time ones when logging into their accounts. This strategy maintains the required security protections while providing a more user-friendly experience.

5. New Signups

Businesses often face the challenge of fake signups or incorrect mobile numbers during the registration process. By implementing SMS verification, businesses can require users to confirm their mobile numbers, ensuring that the provided information is accurate and valid. This helps prevent the creation of fake accounts and ensures that businesses can reach their customers effectively.

6. Account Reactivation

There is a chance of unauthorized access or fraudulent activity when an account is inactive for a long time. To ensure that only the account owner may recover access, inactive accounts can be activated using SMS verification. Businesses can also use SMS verification to send marketing messages to inactive consumers in an effort to entice them to keep using their goods or services..

7. Order Confirmation and Delivery

SMS verification is essential for e-commerce and product delivery companies to confirm orders and guarantee safe delivery. Businesses can instantly confirm that the order is being delivered to the right person by sending an OTP to the customer’s mobile device. This extra security measure aids in preventing unwanted access to important deliveries, like credit cards or high-value orders.

These are just a few instances of the ways in which companies can use SMS verification to boost user experience, stop fraud, and increase security.

Choosing the Right SMS Verification Number Provider

When selecting an SMS verification number provider, it’s essential to consider several factors to ensure that you choose the right solution for your business. Here are some key considerations:

1. Reflect Your Brand

Choose an SMS verification number provider that allows you to customize the sender ID, reflecting your brand name. This helps build trust and recognition among your customers, increasing the likelihood of them engaging with your messages.

2. Truecaller Verification

Ensure that the SMS verification number you choose can be verified by Truecaller. Truecaller is a popular tool used by millions of users to identify and eliminate spam calls and messages. By having your SMS verification number verified by Truecaller, you can enhance the credibility of your messages and improve deliverability.

3. Delivery Rates

High delivery rates are crucial for ensuring that your SMS verification messages reach your customers promptly. Look for an SMS verification number provider that offers high uptime, scalability, and deliverability. Ideally, the provider should guarantee a high delivery rate and ensure that SMS OTPs are delivered within a short timeframe, typically within 3-8 seconds.

4. Compliance with Regulations

Selecting an SMS verification number that conforms with applicable laws, such those established by the Telecom Regulatory Authority of India (TRAI), is crucial to preventing non-delivery of your OTPs. Ensuring conformity with industry standards and guidelines minimizes the likelihood of non-compliance concerns.

5. Real-Time Visibility

It’s critical to keep an eye on the effectiveness of your SMS OTPs once you start sending them. Seek out an SMS verification number supplier who provides real-time access to metrics like click-through, open-, and delivery rates, open rates, and click rates. This data allows you to analyze the effectiveness of your SMS verification campaigns and make necessary adjustments to improve results.

By carefully considering these factors, you can choose an SMS verification number provider that meets your specific business requirements and ensures a seamless and secure user experience.

Conclusion

SMS verification is a powerful tool for businesses to enhance security, prevent unauthorized access, and improve the overall user experience. It is a use for A2P messaging, which comes under transactional SMS. We have similar use cases for promotional SMS which includes RCS.

Sometimes, while sending an RCS, you receive ‘sent as SMS via server’ instead of a read receipt. In order to deep dive into the issue, you can head over to our guide – What does ‘sent as SMS via server’ mean?

With the rise in cybercrime and the need for secure online interactions, SMS verification offers a simple yet effective solution. By implementing SMS verification, businesses can authenticate users, secure transactions, and prevent fraudulent activities.

When choosing an SMS verification number provider, it’s important to consider factors such as brand reflection, Truecaller verification, delivery rates, compliance, and real-time visibility. By selecting the right provider, businesses can leverage SMS verification to build trust, protect their customers, and drive success in today’s digital landscape.