A method for reducing fraud for SMS OTP
authentication includes receiving, by a
server from a plurality of participating entities, a plurality of phone numbers and a plurality of
metadata associated with a user, and determining, by the
server, a phone number tenure for each of the plurality of phone numbers, based on the plurality of
metadata. The method further includes determining, by the
server, a phone number consistency for the plurality of phone numbers, based on the plurality of
metadata, and determining, by the server, a device binding status for each of the plurality of phone numbers, based on the plurality of metadata. The method further includes determining, by the server, a most reliable phone number associated with the user from the plurality of phone numbers, and transmitting, by the server, to the most reliable phone number a SMS OTP, and authenticating the user based on the SMS OTP.