SMS-based Authentication has Risks, Experts Say

With firms turning to two-factor authentication as a means of protecting their network, financial institutions and other cautious industries have adopted SMS-based notifications to comply with the two-factor authentication protocols. While customers are already accustomed to this process, security experts warn that cybercriminals are targeting these systems and often have the ability to remotely hack a cell phone and get the text messages sent to another phone or computer. Yossi Zekri, chief executive of Acuant, explains that “you have to think about the friction to the customer, along with the overall risk you are taking.” Not only is it a process customers are familiar with, targeting SMS verification for fraud is not yet a widespread threat. That being said, Zekri does not think organizations should avoid using this process due to the relatively low risk.