Avoiding Fraud with SMS Verification

Chargeback Gurus' Audio Blog

English - May 07, 2021 20:00 - 7 minutes - 5.46 MB
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Many of the most effective fraud prevention methods are all about answering one simple question: is the person making the transaction really who they claim to be? There are various ways to put this to the test, but none of them are infallible.

Many merchants choose to rely on two-factor authentication by requiring their customers to log in with a password and then enter a one-time code sent to their phone via SMS messaging. How reliable is SMS verification when it comes to authenticating the true identity of a person trying to make a credit card purchase?

Most methods of identity verification are based on an idea called “the three factors of authentication.” The premise is that you can verify someone’s identity by using three different factors: something they know, something they are, and something they have. “Something you know” could be a login password. “Something you are” could be biometric data, like a fingerprint. And “something you have” could be a smartphone.

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https://www.chargebackgurus.com/blog/sms-verification