Aduna launches network-based authentication to replace SMS OTPs

Pan-operator telecom API venture Aduna has launched a new network-based authentication system designed to replace SMS one-time passcodes (OTPs). Spearheaded by AT&T, T-Mobile US, and Verizon, the solution verifies mobile number authenticity directly with the carrier, based on information published by SDx Central.

The new system offers a single API integration across AT&T, T-Mobile US, and Verizon networks, aiming to eliminate the waiting times associated with SMS OTPs, which can be exacerbated when users are on Wi-Fi. Aduna claims this will boost conversion rates and reduce support costs, while also addressing the $15.9 billion in fraud losses U.S. consumers experienced last year, according to FTC data. The company highlighted that cybercriminals are increasingly leveraging AI and sophisticated social engineering scams to bypass OTP security. Aduna's CEO, Anthony Bartolo, stated that the system authenticates users directly through the carrier network in real-time, reducing customer friction and the risk of fraud.

Lani Ingram, VP of AT&T Business' Connected Solutions division, noted that this marks an important step in secure business-to-developer interactions, moving beyond legacy methods like SMS codes. This initiative follows AT&T's earlier deployment of 5G network APIs for number verification and SIM swap, part of a broader effort by the three carriers to mitigate risks like text messaging fraud and unauthorized SIM swaps.

Source: SDx Central