August 25, 2017

Using SMS for Two-Factor Authentication

Online fraud is an epidemic that creates a huge problem for businesses and customers. mGage helps one of the largest providers of two-factor authentication by providing a secure solution for delivering a code to users via SMS. Working with mGage, the company sends almost 900,000 two-factor authentication codes daily to customers of some of the world’s leading technology companies.


Cybercrime is a phenomenon that is estimated to cost the global economy $445 billion annually. One survey estimated that 10 percent of an average company’s user base is not authentic, and that hackers had victimized 21 percent of “real” users. To combat this epidemic, an Internet security company provides a range of authentication solutions such as APIs and SDKs that help companies and individuals reduce the risk of online fraud. The Internet security company’s main service is two-factor authentication, a secure supplementary method of preventing hackers from accessing online accounts. In most instances, it means adding a second step along with a username and password when logging into an online account to ensure that the person logging in is the person authorized to access the account.


Working with mGage provides the company with access to an enterprise-level solution. Importantly, this solution includes data security that stands up to audits from their clients in industries with a need for superior security (such as financial service.) Our system sends delivery receipts to our client to confirm when a sent message is received by the end user. If there is a problem transmitting the message using a short code, a second delivery attempt is made using a long code – which are not designed for high-volume messaging but can be effective when used in a limited basis. mGage can deliver reliable and timely high-volume messaging because of our direct connections with the top US and global carriers, which provide for high uptime, messaging throughput and level of reliability compared to aggregators using secondary connections.


Since partnering with mGage in 2012, the Internet security company has been able to deliver 1.3 billion SMS messages as part of their two-factor authentication services for clients. They average sending 890,000 messages a day with the typical message reaching the end user 90% of the time. This has included leveraging mGage’s global reach to expand their two-factor authentication into new markets, increasing their potential revenue streams substantially.

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Kristen Degeis
Kristen Degeis / Administrator

Kristen Degeis is a Sr. Marketing Manager for mGage. She has more than 10 years of marketing and email campaign experience.

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