Zoe Barber
Published on: March 9, 2022
Over the last five years, a myriad of identity verification solutions have taken the stage, with OTPs and authenticators being the two most notable. But what are they? With fraud accounting for nearly 40% of all crime in England and Wales, businesses are finding themselves exploring modern solutions in attempts to reduce financial and reputational damage. For smaller enterprises, securing the registration and account usage processes is focal. However, larger enterprises that host high-value transactions face greater security requirements. Businesses of every size have turned to OTPs and Authenticators to protect their customers.
“A one-time password (OTP), also known as a one-time PIN, one-time authorization code (OTAC) or dynamic password, is a password that is valid for only one login session or transaction, on a computer system or other digital device.”
Definition of OTP from Wikipedia
“An authenticator app is usually installed on a smartphone and generates a 6-8 digit code every 30 seconds. The code can be used for signing in, trading, depositing, or withdrawing funds from an account.”
Definition of Authenticator from Kraken
An OTP is most commonly an SMS message sent to the mobile number given during the signup process, which when submitted to a web form will give the user access. Authenticator apps and SMS OTPs are both forms of 2FA (Two Factor Authentication) – along with email codes and phone calls – both of which decrease the likelihood of fraud and signal that you take fraud seriously, but how do you know which one is right for your business?
Both have advantages: authenticators provide a higher level of security but a less comfortable customer experience, OTPs are more convenient for the customer and business in general, but less secure due to SIM-Swap fraud. This conundrum – ‘security vs convenience’ – is a common one, luckily there are supplements to both forms of 2FA that can remove large pitfalls, allowing businesses to provide an elevated level of security without sacrificing customer experience.
When you use a mobile as your 2FA you turn your phone number into a digital identity device. To do this you must assume that the customer has access to the phone number, which is not always the case. However, when used in tandem with MNO (Mobile Network Operator) data, mobile numbers become a resourceful proxy for digital identity. This is because MNO data can inform you of various data points indicative of genuine identity.
The benefits of MNO data are substantial, for example, MNOs can provide information on whether the SIM has been swapped and when; if the number has been recycled; if the device has been changed; if it has been reported lost or stolen; and if the device in use is the one attached to the number submitted. When you have this information in aggregate – along with an OTP – confidence in an individual’s legitimacy is exceedingly high. MFA (Multi-Factor Authentication) is the new 2FA – layering less obstructive methods of authentication can create a robust, customer-friendly security system.
Companies like TMT provide GDPR-compliant access to MNO data to help your business stay ahead of the curve on digital identity and fraud prevention. TMT is helping insurers, banks, software developers and service providers to positively identify new customers, authenticate users and protect all manner of transactions from identity fraud and attacks. TMT works behind the scenes, using real-time data from mobile networks and devices to enhance your existing systems so you can focus on building ever better, more profitable customer experiences.
Last updated on September 18, 2024
"Phone number verification plays a critical role in helping to detect and prevent online fraud. TMT ID’s TeleShield product provides easy access to global mobile data, enabling us to enhance the actionable results of our MaxMind minFraud® services."
"BTS (Business Telecommunications Services) is successfully using TMT’s Velocity and Live services to check the status of mobile numbers. This way we make sure we optimize the performance of the service offered to our customers and ensure the quality of terminating traffic to all countries.”
"Working with TMT’s TeleShield service has expanded our ability to detect fraud and minimise the risk to our business. TeleShield brings peace of mind and the opportunity to stop fraud before it affects our customers’ bottom line or the service."
"LATRO relies on TMT’s TeleShield to provide the most up to date and reliable numbering qualification information within our fraud reporting tools, enabling us to protect our customer’s revenues and empowering them to defend themselves against fraudulent numbers."
"TMT is a valued partner that enables us to manage our routing costs effectively. They proactively and continuously expand their operator and country coverage while delivering exceptional customer service. We can always count on them to achieve high-quality results and look forward to our continued collaboration."
"TMT provides us with the most comprehensive numbering intelligence data through their fast and reliable Velocity and Live services. TMT is a trusted partner for us, their products ensure that we continue to optimise the best performance and service to our customers."
"TeleShield from TMT gives 42com the power to detect and target telephony fraud scams internationally, thereby protecting our company from the financial and customer experience impacts of telecommunications fraud."
"It has been a pleasure to work with the team at TMT. They have become an essential provider of accurate numbering data information and Number Portability services globally."
"Deutsche Telekom Global Carrier uses TMT ID as one of their key suppliers for Mobile Number Portability Data services. Deutsche Telekom Global Carrier uses TMT ID’s Velocity MNP solution. This is an ultra-fast query service that optimises the routing of international voice calls and A2P messaging."
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