Arkose Labs Guarantees Success Against SMS Toll Fraud Attacks with $1 Million Warranty

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Warranty Provides Unprecedented Accountability and Protection Against this Bot-Driven Attack Plaguing Businesses 

SAN MATEO, Calif. – April 20, 2023 – Arkose Labs, the global leader in bot management and account security, today announced a commercial guarantee against SMS toll fraud attacks. The $1 million SMS Toll Fraud Warranty covers up to a million U.S. dollars in telecom expenses if Arkose Bot Manager fails to defeat an SMS toll fraud attack on an Arkose managed service customer within the SLA. A number of customers rely on Arkose to block these types of attacks. In one case, the Arkose platform saved a social media company $3 million per month in fraudulent SMS charges.

SMS toll fraud, also known as SMS pumping or International Revenue Share Fraud (IRSF), is a type of bot attack that sends large volumes of SMS messages to premium rate numbers, resulting in fraudulent SMS charges to a business. These charges can amount to millions of dollars a month. According to research, SMS Toll Fraud cost businesses $10 billion in 2021, up from $1.8 billion in 2013.

“We’re once again putting our money behind our award winning service,” said Frank Teruel, CFO of Arkose Labs. “This type of attack hits a company right in the wallet. We stand confident in our platform, and Arkose already has saved customers millions in fraudulent SMS charges by stopping these attacks. Frankly, this type of warranty should be table stakes for any security vendor. It is our second warranty of efficacy and continues to add accountability, protection, and allows us to partner even more closely with our customers on their success.”

One example of SMS toll fraud subverts what is meant to be security infrastructure by exploiting 2-factor authentication. Attackers input premium rate numbers into the phone number field, then automate huge amounts of traffic requesting one-time passcodes. Companies pay a premium to text the passcodes, and the hackers receive a portion of the revenue. 

Arkose Bot Manager’s anti-automation technology identifies and stops the bots that fraudsters use to execute SMS toll fraud attacks. Businesses can insert Arkose Labs at any touchpoint which is protected by one-time passwords in order to detect and challenge fraudulent traffic. In addition, Arkose uses unique in-session authentication that combines real-time risk classification with interactive challenges to lower reliance on multi-factor authentication methods.

The Arkose $1 million SMS Toll Fraud Warranty is included at no additional cost with the Arkose Bot Manager managed services offering. More details about the warranty can be found at:

For more information about Arkose Bot Manager, visit this link or sign up for a demo 

About Arkose Labs

Arkose Labs’ mission is to create an online environment where all consumers are protected from malicious activity. Arkose Bot Manager combines powerful risk assessments with dynamic attack response that undermines the ROI behind attacks while improving good user throughput. Headquartered in San Mateo, CA with offices in Brisbane and Sydney, Australia; San Jose, Costa Rica; and London, UK; the company debuted as the 106th fastest-growing company in North America on the 2022 Deloitte Fast500 ranking. For more about Arkose Labs, including the latest bot management, account security news, and threat research, follow the company on LinkedIn.


Media Contact:

Christopher Fucanan

AquaLab Public Relations for Arkose Labs

[email protected]



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