Phone verification is a digital check used to assess whether a phone number provided by a customer is valid, correctly formatted and consistent with expected characteristics. As part of a KYC or AML process, it can provide an additional signal when assessing customer risk and identifying potentially suspicious activity.
How does phone verification work?
Phone verification analyses key characteristics of a phone number in real time, including its:
- Number format and country code
- Carrier information
- Line type, such as mobile, landline or VoIP
- Line status
The system checks whether the number is properly formatted and valid, and identifies the type of line associated with it. The results are returned in real time, allowing the verification outcome to be considered alongside other KYC and AML checks.
Why is phone verification useful?
A phone number can provide another useful data point when assessing whether the information provided by a customer appears genuine.
For example, identifying an invalid number, unexpected country code or certain line types may give a compliance or fraud team a reason to investigate further. Rather than treating the phone check as a standalone identity decision, it can be used alongside other verification results to help determine whether an application should proceed automatically or receive further review.
Phone verification and fraud detection
Phone verification can support fraud decisioning by flagging numbers that don’t meet expected criteria.
If a number is found to be suspicious, the result can feed into the wider KYC or AML workflow, allowing the organisation to apply its own rules and risk policies.
This can help teams identify potentially problematic applications earlier, without requiring every customer to go through the same level of manual review.
Phone verification and AML compliance
Phone verification can form part of a wider customer due diligence and identity verification process. It does not, by itself, prove that a customer is who they claim to be. Instead, it provides an additional signal that can be assessed alongside identity documents, biometric checks, customer information and other relevant risk indicators. For regulated firms, this can support a more consistent, risk-based approach to customer onboarding and fraud detection.
Add another layer of confidence to customer verification
FAQs about phone verification
What does phone verification check?
Phone verification can check the number’s format, country code, carrier, line type and line status to determine whether the number is valid and identify relevant risk signals.
Can phone verification detect VoIP numbers?
Yes. Phone verification can identify the line type associated with a number, including mobile, landline and VoIP.
Is phone verification the same as sending an SMS code?
>No. SMS OTP verification confirms that someone has access to a phone number. Phone verification assesses characteristics of the number itself, such as validity, line type and status.
Can phone verification prevent fraud?
It can help identify potentially suspicious numbers and provide another signal for fraud decisioning. It should be used alongside other identity and fraud checks rather than as the sole method of verifying a customer’s identity.
How does phone verification support KYC?
Phone verification provides an additional data point within the KYC process. Real-time results can be assessed alongside other checks to help determine whether a customer can be verified automatically or requires further review.
