SMS OTP Authentication Using Reliable Phone Number Selection
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Solution Overview
Problem
Fraudulent transactions and unauthorized account takeovers are increasing through SMS OTP authentication, particularly due to unauthorized account takeovers, creation of fraudulent accounts with fake phone numbers, and tricking customer service personnel into changing numbers.
Innovation Solution
A system and method that involves multiple participating entities, such as banks or businesses, to determine the most reliable phone number associated with a customer by considering factors like phone number tenure, consistency, device binding status, and real-time ownership checks, using a central authority system to authenticate users via SMS OTP.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If SMS OTP authentication is used for customer authentication, then authentication convenience is improved, but fraud vulnerability increases
Solution Approach 1:
The system performs preliminary actions by collecting phone number metadata (tenure, consistency, device binding status) from multiple participating entities before authentication occurs. This advance data gathering enables the system to pre-assess phone number reliability and establish a baseline for fraud detection before the actual authentication event takes place.
Solution Approach 2:
The patent adds another dimension to authentication by introducing multi-entity phone number verification. Instead of relying solely on the immediate authentication request, the system incorporates phone number metadata from multiple independent entities (carriers, service providers) to create a comprehensive reliability assessment, transforming a single-point authentication into a multi-dimensional verification process.
2Measurement precision
If multiple phone numbers are collected from multiple participating entities for verification, then fraud detection accuracy is improved, but system complexity increases
Solution Approach 1:
The system implements a universal phone number verification mechanism that can be applied across multiple participating entities. The same metadata collection and assessment process is used by different entities (carriers, service providers) to evaluate phone number reliability, creating a standardized, multi-functional approach that reduces complexity through consistency while maintaining high detection accuracy.
Solution Approach 2:
The patent introduces an intermediary assessment layer that mediates between multiple phone number sources and the final authentication decision. This intermediary process aggregates metadata from various entities, evaluates phone number reliability through standardized criteria (tenure, consistency, device binding), and produces a unified reliability score, simplifying the integration of multiple data sources.
3Reliability
If phone number metadata from multiple entities is analyzed to determine reliability, then authentication security is improved, but data processing time increases
Solution Approach 1:
The system performs preliminary data collection and metadata aggregation from multiple participating entities before the authentication event. By gathering phone number tenure, consistency, and device binding status information in advance, the system reduces the processing time required during actual authentication, as the foundational reliability assessment is already complete.
Solution Approach 2:
Participating entities (carriers, service providers) self-serve by providing their own phone number metadata to the system. This self-service approach eliminates the need for centralized data collection from each entity, reducing processing time while maintaining comprehensive data coverage across multiple sources.
Data Source
AI summary
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.