Sept. 7, 2024
Have you ever wondered if your online banking is safe? As we move more of our lives online, we want to be sure we're not exposing ourselves to risk by conducting financial transactions online. For most of us, that's the challenge. How do you employ a secure method to prevent unauthorized access when there is a lot of identity theft and hacking going on. In this post, I'll explain what SMS verification is, and how it forms part of keeping your data safe with 2 factor authentication (2FA). I'll discuss the different types of SMS verification, how it's utilized in practice in different industries, and the pros and cons of each type of SMS verification. By the end, you'll understand why you'll be so glad you implemented SMS verification, and how it will make a huge difference in enhancing your security and help you manage the complexity of protecting your personal and financial data.
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In the realm of security, SMS verification ranks high when it comes to keeping your users secure while providing a convenient authentication experience. There are different types of SMS verification, but the two most common are One-Time Password (OTP) verification and Automatic SMS verification, each with its own advantages and each best suited to different types of users.
One Time Password (OTP) verification is a common way to help secure your app. An app sends a unique code to the user's phone number via SMS. The code, which is usually 6-8 digits long, is generated in real time so that a user can receive it in a specific time frame only. After receiving the code, the user enters the code in the app or website in order to access it.
The best part? OTPs are short-lived. The code is valid for only a short period of time, meaning that if someone were to intercept a user's password, they wouldn't be able to use it without the OTP. In addition to providing security, OTP verification offers a simple way for users to prove their identity, particularly when signing in from a new device or location.
Beyond the internet, OTP verification links everything, from banking and e-commerce to internet services, to further help protect users and their information. It's also used to build a secure space for sensitive actions (e.g., financial transactions, account changes, etc.) to make sure the person who's doing it is who they say they are.
Auto SMS verification is an additional tool you can use to offer convenience to users. The previous process required users to manually enter a verification code. With auto, the app retrieves the code for them. Which is nice because it's easier and less friction for them to log in.
Developers enable this flow using APIs like Google's SMS Retriever API. It allows your app to listen for incoming messages that contain the verification code for your app. Your server sends a specially-crafted SMS message containing the one-time code and a unique hash representing your app. So your app can identify and retrieve the verification code from the incoming SMS in a secure way and without any effort on the user's part.
Which is really good for apps where you want to create a polished user experience. Like mobile apps, where you want to acquire and retain users. Because reducing the amount of typing required to log in is super important. You don't want users to have to switch tabs and manually enter codes -- that's just friction, and they'll drop off. Auto SMS verification not only saves them time but makes it effortless for them to use your app, so everybody wins.
In practice, auto SMS verification works like this. An app prompts the user to enter their phone number, the app sends their number to the server to start the verification flow, the server dispatches an SMS with the code, the app listens with the SMS Retriever API, grabs the code automatically and completes the account verification flow.
By providing both options to users, you provide a choice. They might want a better user experience, so you offer them that. They might want stronger security, so you offer them that too. This balanced approach should offer you the best of both worlds -- stronger security and a better UX.
In today's digital world, SMS verifications are a useful tool for securing a range of transactions no matter the industry. All you're doing is using SMS verification to establish who someone is, and then making the transaction secure so that it's smooth and safe for the end user. Here are a few examples of places where SMS verifications are used, and what that means in real life.
Banks use SMS checks all the time to verify transactions and make sure the person who is trying to take your money is really you. Whenever you make a transfer of any reasonably high value, they send you an SMS containing a unique verification code. It's like a one-time password (OTP) that only you can use to login to your account. For instance, if someone tries to transfer money without the correct code that was sent to your registered mobile number, the transaction will not go through.
The app is beneficial because it incorporates another layer of security in addition to the standard username and password login, which is easier to crack using a brute force attack. Furthermore, SMS verification in banking is a safeguard against phishing, where someone can fake your account information. It's reassuring for both the bank and the customer, who feel confident that their transactions are secure.
E-commerce sites will also use SMS verification for things like checkout to prevent criminals from using stolen credentials to make a purchase. When a customer wants to check out, they'll receive a text with a verification code they'll need to enter in order to complete their purchase. The result? Fewer fraudulent transactions, because we're ensuring that the person who wants to make a purchase is actually the real account holder, not just someone who managed to access their account somehow.
For instance, even if a third party somehow gains access to a user's account (for example by stealing login information), they'd hit an additional roadblock at checkout. By enforcing SMS authentication, e-commerce sites aren't just securing their checkout flow, they're also securing their brand. A secure shopping experience builds customer trust, and trust is key. A shopper who trusts a site is a shopper who's not likely to shop somewhere else. And a shopper who's not likely to shop somewhere else is our kind of shopper!
Social media platforms have SMS verification built in to help protect your account from unauthorized logins, especially when someone tries to log in from a new device or new location. The platform will get them to do an SMS verification. They'll receive a text with a code that they need to input in order to log in. That extra step is really effective in stopping account takeovers because even if someone has your password, they can't log in without the SMS code.
This not only keeps your personal info safe on social media, but it's also a cool UX where you can easily lock down your account. You can trust that your account is better protected against unauthorized access, which matters now that digital theft is so widespread. As social media grows and becomes increasingly intertwined in our daily lives, SMS verification ensures your account is in good hands.
SMS authentication also allows other industries to keep their apps safe from various vulnerabilities. With SMS verification more and more a part of the digital experience, businesses are realizing the benefits of using SMS to securely reach users. The global A2P messaging market was worth almost $67 billion in 2022 and is expected to grow by 4.9% CAGR from 2023 to 2030.
Many of us rely on SMS verification to keep our online accounts safe. It has its advantages, but there are also significant disadvantages. Here are a few things you need to know, whether you're an individual or a business.
What’s so great about SMS verification?
SMS verification is stronger because it gives you an extra layer of protection. It’s not enough for a user to prove who they are using only what they know (their passwords)—in addition to entering a password, they also need to enter a code sent to their phone via text message. This two-factor verification makes it much more difficult for someone else to take over accounts. In cases where an attacker might have a user’s password, having (or not having) the device—the phone—in their hand is a solid gatekeeper to unauthorized access. However, SMS verification is just a step up from a password, and it’s up to the organization to decide if that’s good enough for what they’re protecting. SMS is just one step up from a password, so it’s up to the organization to decide if that’s good enough.
It's super easy for the user. We all have smartphones, and we all have our phones on us. So the user can have their verification code sent to them in seconds. It's so easy, it's the method of choice for almost every business to improve user experience. The user doesn't have to remember a new code or carry around some physical token. That's why SMS is great for most apps. And because it's easy to add, businesses can add it really quickly without having to replace their whole system -- it's a practical solution to a security problem you can have now. SMS just works.
However, SMS verification has its downsides. One of the foremost is that it doesn't guard against threats like SIM swapping. During a swapping attack, an attacker social engineers a mobile network operator into transferring control of the victim's phone number to the attacker's own device. From there, they can receive SMS verification codes and bypass the security two-factor authentication was supposed to provide. This is a significant threat, particularly to those who have high-value accounts. There have been many instances in which SIM swaps have been used to compromise important accounts, so both individuals and organizations need to understand the limitations of SMS verification.
Another major drawback to SMS authentication is that it's dependent on cell phone service, and that can be frustrating for some folks. You might live in an area with really bad cell phone coverage, or if there's an issue with the service, you might not receive the SMS verification code at all. In those cases, you could be very upset because you can't get into your account, or you could have a real problem on your hands in an emergency situation if you're locked out when you need it most. So that can be a really big issue for people who have these problems, and something you and your organization need to take into consideration when time is of the essence.
But just keep in mind, even though it's more secure and convenient, SMS verification has a lot of drawbacks that we just talked about. As cybersecurity continues to become even more important, you'll need to add increasingly more security checks to fill those gaps. If you want to keep out attackers, you and your organization might need to look into more secure alternatives. For example, another more secure option like FIDO2 or authenticator apps could be the key to continued strength as you navigate the increasingly digital world.
You can use SMS verification to beef up the security of your systems significantly. But there are best practices you should follow to ensure you're getting the highest level of security. Here are some key things to keep in mind when using SMS verification:
Using SMS verification in addition to strong, unique passwords is a great way to help protect against unauthorized access. In terms of strong passwords, you should have a combination of letters, numbers, and other characters, and it should be at least 12 characters long. SMS verification acts as an added layer of protection, but it's not a substitute for other security practices. A determined hacker can work around SMS checks if the user's password is easy to guess. When people log in, a strong password plus an SMS verification code means two-factor authentication, which drastically lowers the risk of an account getting compromised. It also looks good to auditors, to show that you're working hard on security and are fully committed to protecting user data.
Education is crucial for success when it comes to SMS checks. People should have an understanding of how important it is to keep these SMS checks private. Sharing checks is incredibly risky and can lead to account takeovers and financial fraud. Companies should provide user training and other educational materials to help users understand how checks work, and why they should never hand over a check to anyone for any reason (even if they think the request is legitimate). You can reiterate this via channels like email, or pop-up alerts in-app. You want to foster an environment where users trust that the security in place is strong enough, and that users know how to keep themselves safe from risk.
SMS verification is great, but don't rely on it as your only method of app verification. You could also use app-based authentication (like Google Authenticator or Authy) which can provide just a little more security because they can generate time-based one-time passwords (TOTP) which are usually a little more secure because they're not only relying on SMS to transmit them, which can be sniffed. Or you could use biometric authentication (like fingerprint or face scanning) for an additional layer of security. By using multiple methods, you can have your cake and eat it too: use SMS for the simplicity of verifying that your user's phone number isn't fake without the insecurity of relying solely on SMS for verification.
Having a good SMS check provide who offers encryption is key to a secure check process. Encryption means that when you send sensitive user data, no one can intercept it and use it for harm. That's why, when you're considering an SMS provider, you should ask what they do for security, and if they use encryption to send data. It's also helpful to keep your finger on the pulse of security best practices, and what new ways hackers are getting into systems these days. This way you can get ahead of potential issues. This won't just protect user data, it will give you a good name with users. They will know that every check is protecting their data, and that means they are more likely to send you checks.
SMS verification is an extremely important tool for increasing security on digital platforms. Typically this is done in the form of 2FA - users need to input a code sent to their mobile number in order to prove it's really them. This extra step makes it much more difficult for someone else to access their account, which is great for banking, e-commerce, social media, and more. SMS verification generally comes in two flavours: OTP (one time password) verification, where users manually input a time-sensitive code, and Automatic SMS verification, where apps can automatically retrieve the code and require no user input. Although there are a lot of upsides, there are also downsides to SMS verification (e.g. SIM swapping), and it relies on the mobile network to operate. Organizations can strengthen SMS verification by pairing it with strong passwords, educating users on keeping their codes secure, incorporating more sophisticated forms of verification, and ensuring their SMS service provider has end-to-end encryption.
SMS checks are a way to verify that messages being sent to a user's mobile device are valid, and are most commonly employed as a layer of security for two-factor authentication (2FA). This helps verify that users are actually themselves when it counts for things like logging in or making financial transactions, in order to prevent unauthorized people from doing those things.
OTP verification increases security by sending a unique, time-sensitive code via SMS to the user's registered mobile number. Even if a user's password is compromised, they can't get in without the one-time code, which is only valid for a short period of time, making it a good deterrent against unauthorized access.
Auto SMS verification allows apps to automatically retrieve the verification code from an incoming SMS. Which means less user effort to authenticate, which means higher user engagement and happier users.
SMS checks are used by banks to verify transactions, e-commerce to secure checkouts, and social media companies to protect logins from unknown devices—all using SMS authentication to confirm that the person accessing private info is actually you.
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SMS verification is vulnerable to attacks like SIM swapping, where attackers can take control of your phone number and intercept SMS codes. Plus you're at the mercy of mobile network reliability which could mean access issues if you're in an area with poor reception, or there's an outage. It all sounds like it could be a potential headache.
To improve the security of SMS verification, organizations should: Pair it with strong, unique passwords, Train users to think of the codes as a password, Consider more advanced verification methods like app-based authentication or biometric, Check whether their SMS provider uses encryption.
Teaching people why it's important to keep their SMS verification codes safe. Knowing how to keep codes safe and what might happen if you don't can help people keep their accounts safe from fraud and unauthorized use.
Companies have had to start looking to more advanced forms of security like biometric authentication, MFA, or app-based authentications like Google Authenticator, which are more secure than the vulnerabilities of SMS based verification.
sms check: a mobile phone displaying an SMS verification code
SMS Check