Elevate Business Security and Trust with SMS Verification

Author: Molly

May. 06, 2024

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Elevate Business Security and Trust with SMS Verification

Passwords have long been the go-to method for safeguarding digital assets worldwide. However, with cyber threats becoming more sophisticated, passwords alone may not be enough to protect your data. An alarming 80% of confirmed data breaches are linked to weak or stolen passwords. SMS verification can effectively mitigate the risks of compromised passwords. Discover more about SMS verification and how it bolsters your digital security. 

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What is SMS Verification?

SMS verification, or SMS authentication, is a security measure that uses SMS messages to verify a user’s identity. It adds an extra layer of security to online transactions, account logins, and other digital interactions on websites and apps.  

Traditional password-based authentication has proven to be ineffective against modern cyber attacks, with studies revealing that 96% of the most common passwords can be hacked in less than one second. Even when people adhere to best practices, passwords can be stolen through social engineering. This is why businesses widely implement two-factor authentication (2FA), which makes it more difficult for unauthorized users to gain access, even if they have obtained the user’s password. SMS-based 2FA takes advantage of text messaging to deliver authentication codes to users’ mobile phones, enhancing account security. 

How does SMS Verification Work?

SMS verification requires users to confirm their identity through a unique, temporary code sent to their mobile device via SMS. By introducing this additional step, SMS verification codes significantly reduce the likelihood of unauthorized access and strengthen protection against cyber-attacks. 

Here are the steps involved – 

  1. The user is prompted to input their phone number during the account sign-up or registration process on the business website or app.

     

  2. The phone number is sent a code the user must enter into the designated field.

     

  3. For subsequent login or transaction attempts, once they enter a username and password, the user will receive a unique code or

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    one-time password (OTP)

    via SMS on the designated phone number.

     

  4. The user inputs the code and gains access to their account or completes the transaction.

     

What does "SMS Authentication" mean?

SMS Authentication is a kind of identity proof often used for two-factor authentication (2FA) or multi-factor authentication (MFA).

In SMS authentication, the user provides a code that has been sent to their phone via SMS as proof of their identity.

In theory, SMS authentication provides a second identity factor. While usernames and passwords represent something that only the right user knows, an SMS code delivered to a particular mobile device is evidence of the possession of something (a particular mobile phone) that only the right user should have.

In practice, however, SMS authentication is a poor avenue for this identity factor because the world's SMS systems themselves are tremendously insecure, having been designed and deployed decades ago when cybersecurity was in its infancy and often not considered at all.

SMS infrastructure is often authentication-free, and transmits, stores, and receives data in plain text, making it susceptible to interception and eavesdropping. SMS also relies on phone numbers that are themselves generally unsecured and easy to steal, spoof, or port.

For these reasons, most experts do not recommend heavy reliance on SMS codes as an authentication factor, though the ubiquity of mobile phones and users' familiarity with them has led many organizations to deploy SMS authentication anyway as the path of least resistance to 2FA or MFA compliance.

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