How Phone Verification Helps Combat Identity Theft


Modern society, like everything else on Earth, has some kind of balance. So, on the one hand, we have a progressive electronic community, and on the other, we have an army of internet criminals who make their living and have fun by committing so-called identity theft.

Because a scammer’s main weapon is anonymity, the primary goal of a site owner is to confirm the identity of users.

There are several methods for confirming the identity of a website user.

When it comes to password reminder services, an email confirmation is used; e-merchants use AVS checking to authorize their customers as true cardholders while processing credit cards in e-shops, and so on.

There must be another option. And it is real.

Telephone verification is a type of universal method for confirming the identity of a user. It works like this:

  1. A user enters his personal information, including his phone number, on a website and clicks the “submit” button.
  2. The phone verification system dials this number.

C.After greeting, the system prompts the user to enter the pin code shown on the screen using a phone keypad.

  1. A user enters a pin code and then hangs up the phone.

Following the completion of a call, the system passes a merchant user’s country and city by phone number area code, phone number type, and matching of pin-code entered and pin-code displayed on site. Some businesses, such as, offer Geo IP research in addition to telephone verification. This enables the comparison of IP address data with phone number data (whether the country and city identified by IP address match the ones identified by phone area code).

It’s quite a bit. It is certainly sufficient to determine whether a Customer is a person he appears to be – a genuine website user and a genuine cardholder.

Optionally, the system may ask a person to confirm his identity/order by saying something like his name or any other recorded information.

Following that, such recordings can be used to demonstrate that a person did use a particular service (ordered certain goods). A Site Owner can download a wav-file containing a customer’s recorded voice message at any time because it is saved on the server of the telephone authorization service provider.

This is how telephone verification works.When using a telephone verification:

1. Electronic commerce

Identity theft is a serious issue for many businesses. Telephone verification aids in the reduction of fraudulent transactions. The customer simply goes through the standard authorization procedure and demonstrates that he is the legitimate cardholder. A recorded message with the customer’s voice can later be used as proof of a specific person ordering a good/service.

2. Any website that requires registration or authorization

VoIP phone verification can be used during the registration process to confirm users’ identities (for example, it is critical in various forums, online communities, online financial services, and so on).

It can also be used if a user forgets his password. Sending it to a specific email address does not ensure that the password reminder procedure is not initiated by a scammer to manage someone’s data. The user’s identity can be verified by passing phone verification.

3. Sites with limited free content

Various companies frequently run advertising campaigns that allow users to use their online services for free for a limited time (trial periods).

To avoid multiple signups (which is a bad experience for a marketing report), each new registration can be verified to ensure that the user has not previously signed up.

4. Websites that provide region-specific services

It is illegal in some countries to distribute security software to specific countries. Utilizing a phone verificationservice,the site owner can be certain that his new registered user does not reside in one of these countries. The area code of a phone number aids in determining the user’s location. This service is even more effective when combined with Geo IP research.

VoIP telephone service can be used to automate webmaster work by programming scheduled phone calls to request or confirm specific information.

For example, when a new order with a shipment requirement is submitted, you can automatically initiate a call to confirm shipment details. If you own an internet catalogue, you can call the members of your catalogue once a month to confirm that their sites still exist with the same domain names, and thus confirm their membership.

VoIP telephone verification is an excellent marketing tool. For example, you can call your clients and provide them with information about changes in their maintenance or automatically play greeting messages on specific dates.

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