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Since people who have mobile devices are typically familiar with text messages, the learning curve for receiving messages is not as steep as other methods, but users will have to become familiar with the associated authentication windows. Frustrated customers can give up and use a competitor after a bad experience. This is especially true with customers, who want a seamless and frictionless experience, while also expecting enterprises to keep their accounts and data secure. Devices that receive SMS, including phones, tablets and laptops, can be stolen.ДЇor these reasons, SMS authentication is usually combined with other authentication factors to make it more secure.Д®nterprises have to balance convenience and security when deciding which authentication methods to use.

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Man-in-the-middle attacks can hijack inbound SMS codes or intercept the code being entered on a web page.

A Signaling System 7 (SS7) attack can be used to intercept text messages.

SIM cards can also be cloned and used in different phones.

SIM swapping is used to fraudulently convince a wireless carrier to assign a phone number to a new SIM card.

SMS messages are sent in clear text and viewable on the user's screen, even a phone's preview screen when the phone is locked.

SMS vulnerabilities that can be exploited include:

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They also had access to the email address, password and phone number associated with each account, which may have been stolen through a phishing scheme. For example, hackers used a flaw in Coinbase's account recovery process to get the SMS two-factor authentication token to break into 6,000 customer accounts and transfer funds out of them. Even so, determined bad actors can still breach a network that uses SMS authentication. SMS codes can only be used once, making them more secure than passwords. HOTPs can stay valid for a longer period of time because they aren't time-based. HMAC stands for hash-based message authentication code. HMAC-based one-time password (HOTP) is an event-based password that uses a counter as the moving factor instead of time.If there is a delay in the user receiving a TOTP, such as a slow connection, the TOTP may expire before it can be used and a new one will need to be requested. Time-based one-time password (TOTP) uses time as a moving factor, with passwords typically expiring within 30-240 seconds.Because users do not create these passwords and reuse them on multiple accounts, compromised OTPs have less value to bad actors than traditional passwords. Both use algorithms to generate a new, random code every time a password is requested. There are two main types of one-time passwords (OTPs) used as SMS authentication codes. SMS Authentication Codes - Types of One-time Passwords (OTPs) This automatically generated sequence of characters (letters and/or numbers) is valid for a single login session or transaction. This is a physical trait, like a fingerprint or face, that can be scanned for authentication.ДЄ one-time password (OTP) is created using an algorithm and sent via text message to a phone number associated with the user. This includes smartphones, mobile devices, security tokens, key fobs and other devices that can either generate or receive one-time passwords (OTPs) or codes. This includes passwords, a PIN (personal identification number), or answers to security questions. SMS authentication is not typically used as a primary or sole authentication method, but it's commonly used as the second authentication factor in two-factor authentication (2FA) and multi-factor authentication (MFA).ДЄuthentication types are broken out into three main categories, with SMS authentication falling under the Possession factor:

Passwords are the least secure authentication method and can be guessed, stolen or bought on the dark web, so they need to be reinforced. Presenting users with multiple options to verify their identity helps reduce fraud and defend against bad actors.

What is SMS Authentication in Two-Factor Authentication (2FA) and Multi-Factor Authentication (MFA)? Let's look at how SMS authentication works and whether it is secure. SMS can also be used to authenticate a user's identity. Texts sent to your phone can be forwarded or synced with other devices to make sure you never miss a message. Short message service (SMS), also known as text messaging, is something you may use every day with your friends and colleagues.

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