How Phone Verification Fights Identity Theft

Just like anything on Earth modern society has some kind of balance. So on one hand we have a progressive electronic community and on the other hand we have army of internet criminals whose both work and fun consists of so called identity theft.

As the main weapon of a scammer is his anonymity the main purpose of a Site Owner consists in confirmation of Users identity.

There are some methods to verify website user’s identity.
Confirmation by email is used when it concerns password reminder service; e-merchants use AVS checking to authorize their customers as true cardholders while processing credit cards in e-shops and so on.

But it’s not enough. Passwords can be stolen through so called phishing. And Address Verification System is used in US and Canada only and moreover its scheme is rather imperfect.
There should be another solution.
And it does exist.

Telephone verification is a kind of universal method to verify user’s identity. It works as follows:

A. A user enters his personal data including phone number at a certain site and presses “submit” button.
B. Phone verification system initiates a call to this number.
C.After greeting a system asks to enter pin-code that a user sees on the screen using a phone keypad.
D. A user enters pin-code and hangs up.

After a call is done 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 shown on site. Some companies e.g. provides Geo IP research in addition to telephone verification. This allows to compare IP address data with phone number data (whether country and city identified by IP address matches the ones identified by phone area code).

It is a lot. It is surely enough to define whether a Customer is a person he seems to be – a real website user and a real cardholder.

Optionally system can ask a person to confirm his identity/order by saying something like his name or any other information that is recorded. Afterwards, such recordings can prove that a person had indeed used certain service (ordered certain goods). A Site Owner can download a wav-file with a recorded voice message of a customer at any time as it is saved  검증사이트 on server of telephone authorization service provider.

This is telephone verification and how it works.

Where telephone verification is used

1. E-commerce. Identity theft is a serious problem for plenty of merchants. Telephone verification helps to reduce fraudulent transactions. Customer just passes the standard procedure of authorization and proves that he is a true cardholder. Recorded message with Customers voice can afterwards become a proof of ordering a good/service by a certain person.


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