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SMS Verification: How It Works and Why It's Important

Diana Nersisyan
Diana NersisyanProduct Owner

Published: Dec 23, 2022

SMS Verification

Since its inception, SMS verification has changed the way we use the internet and live online.

It has made it easier for us to stay connected while accessing information and services quickly and securely.

Thanks to phone number authentication, the security of our online accounts has been immensely improved, making it easier for us to keep track of our online activity.

Despite the popularity of sending one-time passwords (OTPs) to mobile devices as a way to secure accounts, there are still many cases of account breaches.

Surfshark reported that the United States had the largest number of breached users in 2021.

A total of 212.4 million users were affected, compared to 174.4 million in 2020.

Iran came in second, with 156.1 million breached users in 2021 versus 1.4 million in 2020.

This was perhaps the biggest jump in breaches year over year.

This only goes to show that verifying with SMS is more necessary than ever.

It creates more obstacles for hackers to overcome in order to breach your personal data.

What is SMS Verification?

SMS verification is a process that involves the use of an OTP that is sent to a user's mobile device via text message.

This password is then entered into an app or website that requires user verification. 

SMS authentication service can be used to verify the identity of a user when they are trying to sign up for a new account, log in to an existing account, or make a purchase.

Mobile OTP authentication is a secure way to confirm a user's identity because the code is only valid for a single use.

This means that even if a hacker were to intercept the code, they would not be able to use it to gain access to the account or make a purchase.

An SMS verification is also convenient for users because they do not need to remember a password or provide any personal information.

Is Sending OTP to Mobile Phones Safe?

Sending an OTP SMS to phone numbers is a safe and secure way to keep users' account information protected.

By adding an extra layer of security in the form of an OTP, businesses are protecting users' account information from being compromised.

Verifying with text messages is actually one of the most secure methods available.

This is because it uses an authentication system that requires both a physical device and a code to verify the user's identity.

This means that even if someone were to gain access to the user's physical device, they would still need the text-activated code to log into the account.

Text Message API Service Pricing

Dexatel employs a pay-as-you-go approach that charges you per sent message. This is the most affordable SMS gateway pricing model, and the service costs are free of setup, monthly, or any other fees.

Which Industries Need Texts to Verify Phone Numbers the Most?

Banking and financial services

Texting is often used as a second factor of authentication for online banking and financial transactions.

eCommerce

Many online retailers use SMS to verify the phone numbers of new customers.

This helps prevent fraud and ensures that only genuine customers can make purchases.

Food and beverage

Restaurants and other similar businesses often use SMS to ensure that orders are sent to the correct phone number and that customers can be contacted if there are any issues with their orders.

Healthcare

Texting is used by many healthcare organizations to verify patient phone numbers.

This ensures that patients can be reached in case of emergencies and that appointments and other important information can be sent to the correct phone number.

What is the Verification Process through SMS? 

When users sign up for a new account on a website or app, they are asked to provide their phone number as part of the process.

Once they enter their phone number, they receive a message with a code that they need to enter on the website or app to complete the process.

These codes are typically 4–6 digits long, but some companies may use longer or shorter codes.

In a nutshell:

  1. A user enters their phone number into a verification form on a website or app
  2. The website or app sends an SMS message to the user's phone number by integrating a verification API into their systems
  3. The user receives the SMS message and enters the code into the form
  4. The website or app verifies the code and allows the user to access the desired content

What Happens When Users Don’t Receive the OTP Code?

If users do not receive the OTP, it means that either their mobile number wasn't entered correctly, their mobile network is not functioning properly, or there are issues with your SMS provider.

In this case, you need to check message statuses regularly on your SMS provider's platform and contact them immediately to investigate the issue.

Advantages of Verifying with SMS

It’s Quick

SMS verification is a quick and easy way to verify user identity.

This is especially useful when you are trying to verify a large number of customers consistently.

It’s Convenient

Another advantage of SMS is that it is very convenient for both the person doing the verification and the person being verified.

The person being verified only needs their phone number to receive the code, which can be a major convenience.

All they need is their phone number, and they can receive the code whenever they need it.

It’s Secure

It goes without saying that, as described earlier, verifying with texts is a secure method of authentication.

The codes that are sent are unique to each individual and cannot be guessed.

This means that it is very difficult for someone to fraudulently pretend to be someone else in order to gain access to someone else's account.

It’s Easy to Remember

In the past, users would have had to remember a username and password for every website or online service they used.

This could be difficult to keep track of, and if they forgot their login information, they would be unable to access their account or would have to perform a password reset every time.

But thanks to passwordless authentication, we can send a code every time our customers need to log in to a website or app.

Is It Possible to Bypass Phone Number Verification?

From a business perspective, bypassing phone number verification can lead to significant security and privacy issues, as it is often done using fake numbers.

Certain websites offer services with temporary numbers to bypass verification—this is not recommended and constitutes fraudulent activity.

These websites use virtual phone numbers that change daily to prevent another user from using the same number on the same web service.

Disposable phone numbers can enable unauthorized charges to your business account, resulting in financial loss and potential damage to your reputation.

Ultimately, maintaining robust phone number verification practices is crucial for protecting your business and your customers from security risks and ensuring the integrity of your services.

SMS Text Verification Service With Dexatel

As with reminders, alerts, and text marketing messages, Dexatel allows you to send online mobile number verification SMS to your users. Upon signing up on our platform, you can send up to 30 free messages for testing

With Dexatel’s SMS service API, you can:

  • Send text messages in several formats
  • See the recipient's response
  • Personalize each message
  • Check the status of your messages

We offer:

How to Start Verifying Users via SMS with Dexatel?

We have a separate piece on how to send OTP SMS with Dexatel, but for a shorter version, check out the guide below.

1. Create an Account

Create an account on the Dexatel platform free of charge.

Log in to your dashboard and manage your account settings, such as topping up your balance, updating information, and more.

2. Generate a Unique API Key

Then, go to the API Keys section.

The system will generate a unique API key, which you will use as a credential to send automatic requests on your behalf.

3. Create a Sender Name

Add your brand name to the Sender IDs, use your shortcode, or pick a new one in the dashboard.

Otherwise, you can send a POST request to the Sender endpoint to send OTP messages with a customized ID.

4. Get a Template ID

Go to the Templates page or send a POST request to the Template endpoint.

Once a template is created, the API will generate a template ID for you to use.

Another way to see your template ID is by sending a GET request to the Templates endpoint.

While creating a template text, you must include a {code} variable in it.

The Dexatel Verify API will generate a random OTP and replace it in your message instead of {code}.

5. Ask for Your Clients’ Phone Numbers

Ask for your clients’ phone numbers to verify whether they actually belong to them by sending an SMS code.

Once the code matches, the process will be completed.

Otherwise, the code will expire and the user will be temporarily blocked after 3 unsuccessful attempts.