Rideshare Giant Saves $2.5M Annually in SMS Toll Fraud Costs

What You’ll Learn

• How a major rideshare and delivery platform uncovered large-scale SMS toll fraud hidden inside sign-up flows
  

  How fraudsters manipulated OTP verification and premium-rate telecom channels to inflate SMS costs while creating fake accounts at scale.

  
  
• Why a friction-sensitive onboarding experience made traditional defenses ineffective
  

  How the platform’s commitment to fast, seamless registration limited its ability to introduce strong verification measures without harming user experience.

  
  
• How Arkose Labs delivered precise, risk-based friction to stop fraudulent SMS activity
  

  How Arkose Bot Manager applied targeted challenges only to high-risk sessions, allowing legitimate customers to pass through smoothly.

  
  
• How integrating Arkose Labs with AWS WAFv2 and CloudFront strengthened protection
  

  How combining native AWS security with Arkose’s bot detection created a unified, multilayered defense that blocked malicious traffic early.

  
  
• How security teams gained new visibility into customer acquisition traffic
  

  How improved insight into device intelligence, IP patterns, and page-load behavior helped the company understand and manage top-of-funnel risk more effectively.

  
  

FAQ

Why was the rideshare company losing so much money to SMS toll fraud?

Attackers used premium-rate phone numbers—often obtained through collusion or weak telecom safeguards—to trigger OTP messages repeatedly. Every fraudulent message created revenue for the attacker and large expenses for the company, turning SMS verification into a high-cost liability.

How did Arkose Labs stop SMS toll fraud without disrupting real users?

Arkose Bot Manager analyzed device, network, and behavioral signals to identify risky sessions and apply targeted challenges only when needed. This preserved the fast, frictionless onboarding experience for legitimate users, while forcing bots and fraud farms to abandon their attempts.

What role did AWS play in the solution?

By integrating with AWS WAFv2 and CloudFront, Arkose Labs provided detection and mitigation alongside AWS’s native DDoS protection, managed rulesets, and global edge delivery. This enabled early filtering of malicious traffic, strengthened OTP security, and reinforced the reliability of the signup and login flows.

What business benefits did the company gain?

The rideshare platform dramatically reduced fraudulent SMS expenditures, maintained a seamless customer onboarding experience, and improved visibility into high-risk traffic patterns. This combination strengthened security while protecting customer trust and operational efficiency.