Systems and methods of reducing fraud for sms otp authentication

A fraud reduction system for short message service (SMS) one-time password (OTP) authentication, comprising:

• a server comprising a processor and a memory coupled to the processor, wherein the server is configured to:
• receive, from plurality of participating entities, a plurality of phone numbers and a plurality of metadata associated with a user, wherein at least one of the plurality of phone numbers and at least one of the plurality of metadata are received from each of the plurality of participating entities;
• determine a phone number tenure for each of the plurality of phone numbers, based on the plurality of metadata;
• determine a phone number consistency for each of the plurality of phone numbers, based on the plurality of metadata;
• conduct a real time phone ownership check for one of the plurality of phone numbers;
• determine a most reliable phone number associated with the user from the plurality of phone numbers based on the phone number tenure, the phone number consistency, and the real time phone ownership check;
• transmit to the most reliable phone number a SMS OTP;
• and
• authenticate the user based on the SMS OTP.

A non-transitory, computer-readable medium comprising instructions for reducing fraud for short message service (SMS) one-time password (OTP) authentication that, when executed on a computer arrangement, perform actions comprising:

• receiving, from a plurality of participating entities, a plurality of phone numbers and a plurality of metadata associated with a user, wherein at least one of the plurality of phone numbers and at least one of the plurality of metadata are received from each of the plurality of participating entities;
• determining a last date for an ownership check by a third party for each of the plurality of phone numbers;
• determining a phone number consistency for each of the plurality of phone numbers, based on the plurality of metadata;
• determining a device binding status for each of the plurality of phone numbers, based on the plurality of metadata;
• determining a most reliable phone number associated with the user from the plurality of phone numbers based on phone number tenure, phone number consistency, and the last date for an ownership check;
• transmitting to the most reliable phone number a SMS OTP;
• and
• authenticating the user based on the SMS OTP.