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Phone Number Verification Done Right


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Spam, fraud, and account takeovers (ATO) not only impact your customer experience negatively and increase churn but also hurt your brand. Verifying users’ identity during account registration and transactions can prevent spam, fraud and ATO.

Watch this slideshare to learn:
-Why phone number verification is critical for mobile and web apps
-What it takes to build a globally effective phone number verification solution
-How you can achieve higher conversion and keep costs under control.

Published in: Technology
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Phone Number Verification Done Right

  1. 1. Phone Number Verification Done Right
  2. 2. Verifying Users Has Become Necessary for Mobile/Web Apps Spam Attacks By Bots e.g., Unwanted messages, link baiting Fraud & Account Takeovers e.g., Fake listings, hacked accounts Unreachable Users e.g., Incorrect or stale user information Not Verifying Users Negatively Impacts Your Customer Retention And Your Brand Verify users are real people Verify users are who they claim to be Verify users are reachable
  3. 3. Phone Numbers Are The Ultimate User Identity • 6 billion people • Global reach Reach • Control over UX • Control over Brand User Experience • Out-of-band • Not easy to fake Security • Customer list privacy • User info privacy Information Privacy
  4. 4. How Phone Number Verification Works User enters their phone number into the app User receives a temporary PIN User enters PIN code into app Customer number is verified
  5. 5. Phone Verification Best Practices Seamless User Experience Single Account Per Phone Number Retry and Failover Short Duration For Code Validity (Minutes) Customize to Local Preferences Track & Analyze Conversion
  6. 6. The Carrier Network Is Not Fit for Phone Number Verification Confusing Numbering Plans Latency & Deliverability SMS AGGREGATOR 1 CARRIER Security Exposure with Each Additional Hop Complex Regulations 3 CARRIER 2 CARRIER 1 2 3 4 1 2 3 4 Enterprise Carrier Network Process
  7. 7. With Traditional Industry Conversion of 65%, It Is Complicated to Get It Right Each app is biased by its own data leading to increased inefficiencies › Multi-vendors needed › Retry logic to build › Routing & Analytics › Localization needed › Fixed vs. Mobile A/B Testing on : › Language › Template › PIN length › PIN Expiry › SMS or Voice › Pay Per Attempt › Complex multi-vendor rate cards › Payables/FX implications › Engineering/Ops/ Procurement teams to manage cost/quality across hundreds of networks Increased Time to Market Decreased User Experiences & Conversion Increased Total Cost of Ownership
  8. 8. Nexmo Verify: Phone Number Verification Done Right Built on Nexmo’s direct to carrier connections, adaptive routing technology, and experience with verifying over 3 billion phone numbers. Verify Phone Numbers Anywhere Simply send Nexmo Verify a phone number and then validate the user entered code Verify takes care of delivering the code and optimizing multiple parameters to maximize your conversion Template & Language Pin Length SMS or Voice Failover Method Retry Sequence & Timing Alphabetic or Numeric Sender ID 70,000 customers Including 80% of Messaging Apps in 235 countries & territories
  9. 9. How Verify Works Verification Check Customer Backend VERIFY API Verification Request attempt Retries/Failover User enters PIN Your <brand> PIN is 1212 We’ve just texted a code to +1 (847) 555-0150 1212 End User receives PIN by SMS or Voice 1 2 1st
  10. 10. Under The Hood: Verify Eliminates Complexity Reject VoIP, Toll-free and Premium Numbers Number Validation Workflow Routing PIN Mgt. RFC6238 Workflow Engine Template Mgt. SMS Voice/TTS Adaptive Routing™ Direct to Carrier Billing Analytics Pay Per Conversion API Maximize Conversion of Valid Numbers Conversion Data & Analytics PSTN Network Verification Request Verification Check
  11. 11. Verify Applies Best Practices On Your Behalf Example of Two Users Application Verify Automatic Conversion Optimization Verify Person 2 In United States Person 1 In Cyprus BEST PRACTICES • Primary Channel: TTS • Sender ID: Alphabetical Sender • Language: Turkish BEST PRACTICES • Primary Channel: SMS • Sender ID: Phone Number • Language: English
  12. 12. Business Impact From Using Verify Improved Customer Acquisition Enhanced Security Lower, Predictable Costs Instant Global Reach Zero Telco or 2FA experience required Simple API integration Fixed & mobile numbers verified globally Pay Per Conversion Flat global pricing – no rate cards to manage Dashboard to analyze costs and performance Highest deliverability with Adaptive Routing SMS or voice selection and seamless failover Customization to local preferences Spam and fraud prevention Low latency PIN delivery and time based expiry RFC6238 compliant PIN generation
  13. 13. Industry Scenarios SOCIAL NETWORKS, OTTs & GAMING APPs: Problem: Spam, Scam, ATO Solution: Prevent fake accounts used to create spam by verifying phone numbers TRAVEL, TRANSPORT & RESTAURANTS: Problem: Unreachable users Solution: Ensure that you can alert or notify customers by verifying numbers. BANKING & PAYMENTS: Problem: Fraudulent Transactions Solution: Authenticate all transactions with a One Time Password to prevent fraud. MARKETPLACES & ECOMMERCE: Problem: Fraud, ATO Solution: Verify users on registration, password resets, and suspicious transactions.
  14. 14. Case Study: Streamlining Sign-on to Public Wi-Fi with Nexmo’s Verify API THE SOLUTION THE RESULTS THE CHALLENGE • Registration via email yielded only 30% conversion. • Using SMS boosted conversions to 66%. • Social Zone wanted higher conversion rate and higher quality information for customers subscribing to its hot-spot service. • With Nexmo Verify, Social Zone boosts conversion rates to near 85%. • Improved user experience boosts brand image. • Social Zone integrated the Nexmo Verify API into its registration system. • Verify relies on both SMS and text-to-speech services from Nexmo to increase the likelihood that recipients will received crucial verification codes.
  15. 15. Case Study: Verifying New Users Around the World with Ease THE SOLUTION THE RESULTS THE CHALLENGE • pq needed to be able to authenticate app users anywhere in the world quickly and reliably. • pq was to be featured on the Apple App Store, so it needed a solution it could integrate quickly. • Five verification solution providers had already failed pq’s quality tests. • pq integrated Nexmo Verify with its sign-on system in only one hour. • A pq app ready for worldwide user authentication was on the App Store in a matter of days. • With Verify, subscriber conversion rate is above 80%. • Verify complements pq’s focus on the customer experience, boosting brand satisfaction among users. • pq integrated its sign-on system with the Nexmo Verify. • Verify relies on both SMS and text-to-speech services from Nexmo to increase the likelihood that recipients will received crucial verification codes quickly and reliably, regardless of where they are in the world.
  16. 16. Case Study: Stopping Scams at the Door of Love THE SOLUTION THE RESULTS THE CHALLENGE • 30% of new site registrants were from spammers and scammers. • Registration via email proved thoroughly unreliable. • DatesOfAsia personnel lost valuable hours each week rooting out scammers. • 94% global conversion rate with Nexmo Verify. • Spammer and scammer registrations eliminated. • DatesOfAsia personnel can now focus on improving the experience of legitimate community members. • DatesOfAsia was able to integrate and fully test Verify in just 10 hours–with no prior Nexmo experience. • DatesOfAsia had been planning to construct its own SMS-based user authentication system. • When it discovered Nexmo Verify it recognized that integrating Verify would be even more effective and far less costly in both the short and long terms.
  17. 17. Case Study: Nexmo Verify Instills Confidence in the Integrity of the Folr App & Community THE SOLUTION THE RESULTS THE CHALLENGE • Allowing others to track your whereabouts demands absolute trust in the authenticity of the other users. • Email authentication is too easily spoofed to ensure customer confidence in other Folr member identities. • Authentication needed to be quick to integrate, global in scope, and easy to manage. • Nexmo Verify creates the confidence that Folr users require to embrace the solution. • Verify PINs act as account passwords, ensuring that only verified users can access their accounts, and only using registered devices. • Verify’s global focus makes it easy for Folr users to have their devices and identities validated anywhere in the world. • Folr integrated the Nexmo Verify solution into its mobile app infrastructure. • Verify matches users to specific devices. • One-time use PINs from Verify function as passwords to unlock the Folr app on a registered device.