Impact Report on Phone Validation and Fraud

This impact report discusses the significant challenges and risks associated with inadequate phone validation practices in businesses. It outlines the alarming rise in SIM swap fraud, which increased by 1,055% in 2024, and highlights the financial implications of poor phone intelligence, with consumer fraud losses reaching $12.5 billion. The report details the two primary approaches to phone validation: basic validation services that only confirm number existence and more sophisticated telecommunications intelligence that provides real-time updates on number porting and fraud patterns. It emphasizes the operational chaos that arises from relying on outdated validation methods, leading to wasted marketing efforts and degraded customer experiences. The report also addresses the need for organizations to enhance their phone validation infrastructure to mitigate risks associated with account takeovers and fraud. It concludes by stressing the importance of integrating real-time data and risk scoring into existing security workflows to improve fraud detection and customer trust.