As data breaches become increasingly common, secure authentication is more important than ever for businesses in every industry. Text message OTP (one-time password) adds a crucial layer of security for banking, healthcare, and many other applications.
Securely sharing OTP codes via text requires the right tools and processes. This guide will cover best practices for implementing an SMS OTP solution and explore helpful approaches to common one-time passcode challenges.
SMS OTP is a secure identity verification process that uses text messaging to send a temporary security code to a user's mobile phone. It's a multi-factor authentication method that adds an extra layer of security beyond a password or a personal identification number (PIN).
Each OTP code includes a random string of digits. The passcode is valid for one-time use, and it expires relatively quickly.
Here's how it works:
Text message OTP verification starts with a trigger. For example, a process (e.g., logging into a bank account) requires multi-factor authentication. The system generates a random passcode, typically with four to eight digits.
Next, the system uses SMS automation to text the passcode to the user's mobile phone number. Upon receiving the OTP notification, the user inputs it into the system (e.g., an online banking portal) to complete the identity verification process.
Text message OTP is a relatively common authentication method. It's widely used because it provides a simple yet effective way to add a necessary layer of security to sensitive operations like logins and financial transactions.
It's accessible for most users, as it only requires them to have an active mobile number. Because these passcodes consist of just a short string of digits, they're easy for the average user to input into a verification system.
Yet they're a secure method of verifying a user's identity because each OTP is unique and works just once. Plus, each passcode expires in a short amount of time, such as 10 minutes.
For most businesses, SMS OTP is a cost-effective solution for protecting sensitive information and preventing unauthorized access. It's also easy to scale, allowing businesses to make their processes more secure.
Because of its cost effectiveness and user friendliness, SMS OTP is a smart choice for many business types. Here's how businesses in several industries use this security method:
No matter your industry, text message OTP offers several advantages over other methods like email or authentication apps.
Sending passcodes via email can result in deliverability issues or create additional security concerns when email accounts are compromised. Plus, security codes often get lost in busy email inboxes or spam folders.
In contrast, SMS has an average delivery rate of 98%, meaning users tend to experience fewer issues receiving codes via text. Plus, mobile device notifications are easy to spot and access, making SMS OTP simpler to navigate.
Compared to third-party OTP services like WhatsApp or time-based one-time password (TOTP) apps like Google Authenticator, SMS provides a better user experience. Receiving passcodes via SMS messages requires zero additional setup, app downloads, or technical knowledge.
Some authentication services only work with certain OTP systems, which limits the technology you can use to keep sensitive data secure. In contrast, SMS OTP is compatible with a diverse range of systems and APIs, making it a smart choice for most businesses.
Setting up hardware-based authenticator apps can get pricey quickly. However, SMS OTP typically has lower setup costs. Since SMS is one of the most affordable secure communication channels, text message OTP tends to be a cost-effective long-term solution.
Use these steps as a guide to manage text message OTP verification.
Consumer messaging apps won't work for managing text message OTP verification. Instead, you need a secure SMS platform designed for business, like Sakari. To find the right SMS OTP provider, consider the platform's:
Before you begin using text messaging for OTP verification, make sure your process complies with GDPR and TCPA guidelines. SMS is a permission-based communication channel, so people must opt in before texting.
If you plan to use SMS OTP as a 2FA method, make sure customers consent to receiving text messages from your business. And if you use text message OTP as an account verification method, make sure to inform customers that each text may be subject to their carrier's standard fee.
OTP messages should be as concise as possible and include essential information only. Simply identify your business and provide the passcode.
For example: "Your [Business] verification code is: [OTP]."
To prevent scams and phishing attacks, consider adding another sentence or two to the message, explaining that the recipient should avoid sharing the code with anyone else.
For example: "Never share this one-time code with anyone. [Business] will never call to ask for it."
Always aim to keep your messaging below 160 characters. Longer messages count as multiple SMS segments, which increases the cost of OTP verification.
After the initial setup, using SMS for OTP verification shouldn't require significant manual work. Rely on your business texting platform's API to connect with your OTP generator and your CRM tool.
With an SMS API, you can automate OTP verification while keeping both text messages and customer data secure. This way, you can set up a secure, reliable SMS OTP system.
As reliable as SMS OTP is, no authentication method is completely failsafe. Here are a few common challenges and tips to work around them:
As an automated texting platform, Sakari is designed to send one-time passcodes securely and reliably. Our SMS OTP solution can implement this additional security measure for businesses of any size.
Sakari integrates with 1,300+ software platforms (including CRMs) so you can set up streamlined verification workflows. And with our RESTful API integration and webhooks, you can connect Sakari to virtually any third-party platform to create a secure system.
There's no need to wonder whether recipients are receiving your OTP texts. Our real-time analytics make it easy to confirm delivery.
And with Sakari's monthly subscription pricing, you never have to guess what you'll spend on sending SMS OTP. Each plan includes a flat rate for a specific number of text segments with clear pricing for overages.
Plus, SMS OTP is one of the many use cases our mass texting software supports. As an SMS marketing platform, Sakari also offers text campaigns, autoresponders, two-way texting, and much more.
From transaction verifications to login confirmations, SMS OTP is a reliable method for protecting sensitive information and keeping accounts secure. With the right tech, you can easily add an extra layer of security and give both your business and your customers peace of mind.
Implement secure, reliable SMS OTP verification. Sign up for a free trial of Sakari today.