Twilio Verify Fraud Guard: 100% guaranteed protection against SMS Pumping Fraud
Time to read: 2 minutes
The threat of fraud is greater than ever in the digital era. Businesses want robust solutions to safeguard themselves and their customers as fraudsters become more sophisticated.
The surge in SMS fraud attacks, like SMS Pumping Fraud (also known as Artificially Inflated Traffic), is a growing concern. In this scheme, attackers exploit mobile numbers in apps and websites to redirect SMS codes or links, profiting from the revenue generated from the fraud. Businesses, regardless of size, suffer revenue loss, loss of trust and resource strain due to this complex issue. Manual solutions fall short, as seen with Twitter's staggering $60 million annual loss.
Recognizing the problem facing our customers, we leveraged the massive scale of digital interactions on the Twilio Customer Engagement Platform, and applied machine learning(ML) to develop Verify Fraud Guard in 2022.
Twilio Verify Fraud Guard, a game-changing fraud protection feature within Verify that analyzes the customer traffic patterns and leveraging AI/ML models blocks SMS OTPs (One-time passcode) from being sent to users that will never convert, therefore, saving the customer money from the unconverted OTP plus the risk of subsequent fraudulent OTP requests.
Fraud Guard's impressive track record speaks for itself. Within less than a year since its pilot launch, it has successfully blocked 170 million fraudulent activities. This staggering number highlights the scale of the problem and the effectiveness of Fraud Guard as a defense mechanism. We are so confident about this feature that we offer a 100% guarantee on this Verify feature1.
Fraud attempts not only pose a security risk but also carry significant financial implications. Twilio Verify Fraud Guard has saved customers a staggering $36 million2 in costs associated with SMS Pumping Fraud. Another example, a US-based social media company experiencing SMS Pumping Fraud was able to save $300 thousand the first month of using Fraud Guard. These figures represent explicit savings derived from the direct prevention of SMS Pumping fraud attempts2.
The possibility of false positives, which can cause unnecessary disruptions and dissatisfaction for legitimate users, is a common problem with fraud detection services. Verify Fraud Guard, on the other hand, alleviates this problem by offering several protection settings that allow the customer to select how much blocking rate is optimum based on their business demands. Businesses may address the trade-off created by false positives and cost better based on their needs using this capability. The total rate of false positives across all Verify accounts has constantly stayed around 0.1%. This outstanding precision ensures that legitimate users can access the services they need without facing any additional obstacles.
In the battle against SMS Pumping fraud, Twilio stays at the forefront with SMS Pumping protection tools such as Verify Fraud Guard and Lookup SMS Pumping Risk. Fraud Guard takes the spotlight as the ultimate defense mechanism. This powerful tool, bundled with the Verify package, has emerged as a true hero, preventing a staggering 141 million fraud attempts since its initial launch. As a game-changing force, Fraud Guard offers unparalleled security and tranquility to businesses, boasting remarkable precision, minimal false positives, and substantial cost efficiencies.
1. Terms and conditions apply.
2. based on Twilio’s publicly-available price list as of 7/14/2023
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