How to Detect and Block Disposable Phone Numbers in User Registrations

Introduction

Disposable phone numbers are often used by fraudsters to create fake accounts, bypass verification processes, and engage in malicious activities. For businesses, this poses a significant risk, leading to fraudulent transactions, chargebacks, and reputational damage. Detecting and blocking these numbers during user registration is crucial for maintaining security and trust.

A study by Juniper Research estimates that businesses will lose over $200 billion to online payment fraud by 2025, with disposable phone numbers playing a key role in these schemes.

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Why Disposable Phone Numbers Are a Problem

Disposable phone numbers are temporary and often free, making them ideal for fraudulent activities. Here's why they're problematic:

• Fake Accounts: Fraudsters use them to create multiple accounts for spamming or scamming.
• Bypassing Verification: They circumvent SMS-based verification, a common security measure.
• Fraudulent Transactions: These numbers are linked to fraudulent payments or chargebacks.

How to Detect Disposable Phone Numbers

1. Use a Phone Number Scoring API: APIs like Greip's Phone Number Scoring API analyze phone numbers in real-time to identify disposable, invalid, or publicly sold numbers.
2. Check for Patterns: Disposable numbers often follow specific patterns or prefixes associated with temporary services.
3. Cross-Reference Databases: Compare the number against known disposable number providers.

How to Block Disposable Phone Numbers

1. Integrate Detection Tools: Automate the process by integrating a phone number scoring API into your registration flow.
2. Flag Suspicious Numbers: Mark numbers identified as disposable for manual review or automatic rejection.
3. Educate Users: Inform legitimate users about the risks of disposable numbers and encourage them to use permanent ones.

Best Practices

• Layered Security: Combine phone number scoring with other fraud detection measures like email validation and IP geolocation.
• Regular Updates: Keep your detection methods updated to counter new disposable number services.
• Monitor Trends: Stay informed about emerging fraud tactics involving phone numbers.

Conclusion

Blocking disposable phone numbers during user registration is a proactive step to mitigate fraud risks. By leveraging advanced tools like phone number scoring APIs and adopting a multi-layered security approach, businesses can protect themselves and their users from fraudulent activities. For more insights on fraud prevention, explore our guide on How to Filter Out Fake Users.