How fraudsters manipulated OTP verification and premium-rate telecom channels to inflate SMS costs while creating fake accounts at scale.
How the platform’s commitment to fast, seamless registration limited its ability to introduce strong verification measures without harming user experience.
How Arkose Bot Manager applied targeted challenges only to high-risk sessions, allowing legitimate customers to pass through smoothly.
How combining native AWS security with Arkose Labs' bot detection created a unified, multilayered defense that blocked malicious traffic early.
How improved insight into device intelligence, IP patterns, and page-load behavior helped the company understand and manage top-of-funnel risk more effectively.
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.
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.
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.
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.
A prominent rideshare and delivery giant prioritized streamlined customer acquisition through online sign-ups but inadvertently opened doors to SMS toll fraud, causing skyrocketing SMS bills that threatened millions in annual fraudulent charges.
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