How Does Phone Number Verification Work?
Phone verification is a common security measure for online end-users. It involves automatically calling the user at the time of transaction to ensure they are actually in possession of the number being used.
This process helps reduce fraud and account takeovers. It also saves on costs by catching invalid numbers early, in real-time.
Verification by SMS
Phone verification is a way for businesses to make sure that the phone number provided by their customers is valid and that they own it. It’s also a form of two-factor authentication that many online services use to ensure that only the owner of a particular phone number can sign in.
The problem with SMS verification is that many customers knowingly provide fake phone numbers for verification purposes to avoid getting promotional information and vouchers from companies, as they prefer to preserve their privacy or don’t want to get their phone number leaked online. This puts the company’s data at risk and makes them waste their time, money and resources.
Fortunately, there are solutions that solve this problem by automatically calling the online end-user’s phone and providing them with a PIN code, which they must then enter in order to verify ownership of their phone. This solution is a great way to reduce fraud without making the user experience frustrating or requiring too much of their time.
Verification by Email
Phone number verification is one of the key aspects of KYC (know your customer) and it adds an extra layer of security to reduce fraud. It also helps businesses understand their customers better.
This type of verification involves a phone call or SMS to the user’s phone number to confirm its authenticity. It’s an effective way to prevent fraudulent activities like account takeovers and scamming as it ensures that the person who owns the phone is the same person interacting with the website or application.
To perform this process, an API service that offers phone number validation should be integrated into the application so that it can verify the number as soon as a user enters it. The service will make inquiries for this phone number and the country code from official sources to get reliable information. Once the service confirms that the number is valid, it will notify the users through the application. It’s a convenient and efficient process.
Verification by IVR
Verification by IVR enables businesses to confirm that the phone number they have on file belongs to the intended owner. This way, they can be confident that business updates, promotional vouchers, lucrative offers and other important notifications will reach the right customers in time.
By using IVR, companies can verify a phone number during the account creation process or during a transaction authentication process. This helps reduce fraud and ensures that the customer gets reliable updates.
The IVR system can also be programmed to greet callers with personalized greetings or information specific to them. This will help improve the user experience and provide better support. It will also save the company time and resources as it will not have to waste resources on cleaning invalid phone numbers in the database. It will also help them avoid costly mistakes such as data errors during sales efforts, customer service or branding and marketing activities. The best way to do this is to integrate a phone verification API service into the application.
Verification by Voice
When a user enters their phone number on an application it needs to be checked that they have the right to do so. This is especially important when users are in different countries or have roaming turned on.
When users are registering on applications, upgrading their account status, resetting passwords, refreshing user details, authenticating transactions etc a verification call is made to the subscriber phone number. The subscriber has to enter a code provided via the automated call in order to complete the process.
Conclusion:
It is vital to ensure that the phone number entered by a client is correct in order to prevent fraud and money laundering activities. This can be achieved by using a reliable identity verification service and phone number validation. This allows companies to gain confidence in their clients’ numbers and increase the reliability of notifications. This helps them save time and money by decreasing the amount of manual reviews needed. It also allows them to comply with KYC regulations more effectively and enhance the trust between themselves and their clients.