Choosing the best 2FA solution for fraud prevention

Fraud prevention is a critical concern for businesses of all sizes. As digital transactions and online interactions increase, so does the need for verification solutions to protect against fraud. That is to say: The more people use the web, the more folks with nefarious intent slip in—and the more you need protection.

This article provides a comprehensive comparison of some of best fraud prevention solutions for 2FA on the market today. We’ll take a look at Telnyx Verify API and its main competitors, including Twilio, Plivo, Sinch, Vonage, Bandwidth, and CM.com. We'll examine their features, pricing, ease of use, and overall effectiveness in combating fraud so you can protect your business.

Why fraud prevention matters

Due to the increasing number of bad actors online, businesses are more vulnerable to fraud now than ever before. Cybercriminals are constantly developing new methods to exploit vulnerabilities, making it essential for companies to stay one step ahead. But fraud prevention is about a lot more than just knowing what a phishing email looks like. It’s a comprehensive, 360 process that takes into account many different channels of potential fraud and works to shore up potential exploits across the business.

Truly effective fraud prevention accomplishes two things:

1. Protects a company's assets.
2. Builds trust with customers

Of course, you want to protect what you’ve built. But to sustain it, you’ll want to reassure people that their information will be safe with you. Feeling that you’re a trustworthy business will help you gain and retain more customers.

When we talk about fraud prevention and protection, we’re usually looking at several safety features. The best ones offer protection across a range of areas and often meld and merge with one another. Of these, 2FA is perhaps the biggest. Let’s take a look at what that means for you and how you can best utilize it.

How 2FA helps prevent fraud in 2024

2FA (two-factor authentication) is a critical tool for preventing fraud in 2024. It does just what the name implies: requires users to provide two different ways to prove they are who they say they are in order to access accounts or other information.

By requiring users to provide two forms of identification before granting access, 2FA adds an extra layer of security beyond just a password. The two factors typically involve something the user knows (like a password) and something the user has (such as a smartphone to receive a verification code).

In 2024, cyber threats have become more sophisticated. Passwords alone are no longer sufficient to protect sensitive information. With 2FA, even if a hacker obtains a user's password, they still need the second factor to gain access. Multiple factors make unauthorized access significantly more difficult. This requirement is especially important for protecting things like financial transactions, personal data, and business systems.

2FA started off with just using a regular password and a text notification that provided users with a code to enter, and some systems still work this way. However, the world of 2FA has expanded and become increasingly varied. Modern 2FA solutions include SMS-based codes, authenticator apps, and biometric verification, all of which enhance security while still being relatively easy for users. By leveraging 2FA, businesses can reduce the risk of data breaches and build trust with their customers, knowing that their accounts are safeguarded against unauthorized access.

Implementing 2FA is a proactive step towards robust fraud prevention, providing peace of mind for both businesses and their customers in an era of increasing cybercrime.

What you should look for in a 2FA provider

When choosing a two-factor authentication provider, several key factors should guide your decision:

Security features

Look for providers that offer multiple authentication methods, such as SMS codes, authenticator apps, and biometric options. Ensure they support the latest encryption standards and provide features like token expiration and device recognition.

Ease of integration

The provider should offer comprehensive documentation, SDKs, and APIs to facilitate seamless integration with your existing systems. Check for compatibility with popular programming languages and platforms.

User experience

If a 2FA tool is too frustrating to use, it won’t do much to help maintain security. A good 2FA provider should offer a user-friendly experience, with easy enrollment and authentication processes. Features like self-service password reset and user management can enhance usability.

Scalability and reliability

Ensure the provider can handle high volumes of authentication requests and has a robust infrastructure to guarantee uptime and reliability. Look for providers with a proven track record in scalability. Even if your business is small now, it’s likely to scale, so find tools that can keep up.

Compliance and regulations

Verify that the provider complies with relevant regulations and standards, such as GDPR, CCPA, and PCI-DSS. Complying with these regulations is crucial for protecting user data and avoiding legal issues.

Cost

Consider the pricing model and ensure it aligns with your budget. Look for transparent pricing with no hidden fees or sneaky upcharges.

Support and service

Reliable customer support is essential. Depending on your needs and how your team is likely to use the support, check if the provider offers 24/7 support and additional resources like knowledge bases and community forums.

Choosing the right 2FA provider involves balancing security, ease of use, and cost. Evaluating these factors will help ensure you select a provider that meets your specific needs and enhances your overall security.

The 7 best 2FA fraud prevention solutions

So what tools meet all of the above requirements? While every business will have a unique set of needs, we’ve pulled together the tools we think are the absolutely best-in-class options for 2FA solutions. We’ll go into more detail below, but here’s a quick ranking system to help you identify what options might be best for you at a glance.

1. Telnyx Verify API

Telnyx Verify API is (obviously) our top choice. It offers a strong set of features while maintaining competitive pricing. It also has a reputation for being particularly user-friendly and fast to set up, helping you gain the security you need that much faster.

Features

Telnyx Verify API offers a comprehensive suite of features designed to enhance security and streamline the verification process:

• Multi-channel verification: Supports SMS, voice, and email verification.
• Global reach: Provides verification services worldwide.
• Scalable: Designed to handle high volumes of verification requests.
• Flexible integration: Easily integrates with existing systems and applications.

Pricing

Telnyx offers competitive pricing with a pay-as-you-go model, making it an affordable option for businesses of all sizes. The cost per verification depends on the method (SMS, voice, or email) and the destination country.

Ease of use

The Telnyx Verify API is known for its user-friendly documentation and straightforward integration process. Developers can quickly set up and start using the API with minimal hassle.

2. Twilio Verify API

With a wide range of services and an especially user-friendly setup process, Twilio is a strong secondary pick. Though it’s one of the more expensive options on this list, it offers features several other options don’t.

Features

• Multi-channel verification (SMS, voice, email, and push notifications)
• Extensive global coverage
• Advanced security measures like encrypted communication, token expiration, and fraud detection mechanisms

Pricing

Twilio's pricing is slightly higher than Telnyx, but it offers a broader range of services. The cost per verification varies based on the method and destination.

Ease of use

Twilio is renowned for its developer-friendly environment and extensive support resources, making it easy to integrate and use.

3. Plivo Verify API

Third on our list is Plivo, a competitively-priced, easy-to-use option. It offers fewer features than some of the others on this list, but it’s a great choice for a team looking for an affordable, straightforward option.

Features

• Supports SMS and voice verification
• Real-time delivery reports and analytics
• High reliability and uptime

Pricing

Plivo offers competitive pricing with a straightforward and transparent pricing structure.

Ease of use

Plivo provides clear documentation and a simple API interface, facilitating quick integration and deployment.

4. Sinch Verification API

While the features are just standard, Sinch is known for being extremely easy to use and set up, with plenty of documentation to help you do self-service support. They also have an extremely comprehensive setup, so you can expect minimal downtime. This ease of use is crucial when reliability is your top concern.

Features

• Multi-channel verification (SMS, voice, email)
• High delivery rates with direct carrier connections
• Real-time analytics and reporting

Pricing

Sinch's pricing is competitive and varies by verification method and region. They offer volume discounts for large-scale operations.

Ease of use

Sinch is known for its robust infrastructure and reliable services. The API is easy to integrate, with comprehensive guides and support.

5. Vonage Verification API (formerly Nexmo Verify)

If your developers need to know every single detail about every item in your tech stack, take a look at Vonage’s Verification API. It has extremely thorough documentation for integration, as well as nuanced analytics information.

Features

• Supports SMS and voice verification
• Global reach with direct carrier connections
• Detailed reporting and analytics

Pricing

Vonage offers a competitive pricing model with clear rates for each verification method. Their pricing is slightly higher than Telnyx, but it provides similarly high reliability and coverage.

Ease of use

Vonage provides extensive documentation and developer resources, making the API integration process smooth and efficient.

6. Bandwidth Two-Factor Authentication API

A strong middle-of-the-pack contender, Bandwidth isn’t too fancy on features—and its price reflects that. However, it has detailed documentation and solid standard support.

Features

• Supports SMS and voice verification
• Direct-to-carrier messaging for higher reliability
• Comprehensive analytics and reporting

Pricing

Bandwidth offers competitive pricing with transparent rates. It’s known for its cost-effective solutions, especially for high-volume use cases.

Ease of use

Bandwidth provides detailed documentation and support, ensuring a straightforward integration process.

7. CM.com Verification API

Last but certainly not least on our list, CM.com’s API is reliable, simple to use, and competitively priced. It’s a solid, standard option for any company new to 2FA.

Features

• Supports SMS, voice, and email verification
• High delivery rates with direct carrier connections
• Advanced analytics and reporting

Pricing

CM.com offers a competitive pricing structure, with rates varying based on the verification method and region.

Ease of use

CM.com is known for its reliable services and easy-to-use API, supported by clear documentation and helpful customer support.

Verifying the best 2FA choice for you

As cyber threats evolve, implementing a robust two-factor authentication system can make a significant difference in securing your business and protecting your users. Consider factors such as security features, ease of integration, user experience, scalability, compliance, cost, and customer support when evaluating potential 2FA providers. By thoroughly assessing these aspects, you can choose a solution that meets your current needs and scales with your business as it grows.

At Telnyx, we understand the critical importance of fraud prevention and the role of secure authentication. Our Verify API offers a comprehensive suite of features, including multi-channel verification, global reach, and seamless integration. Designed with security and scalability in mind, Telnyx Verify API provides businesses with a reliable, cost-effective solution to protect against fraud. Backed by our commitment to innovation and customer support, Telnyx stands as a trusted authority in the communications industry.