PayGuard
Sub-3s OTP delivery closed the fraud window and cut attacks by 73%
PayGuard replaced slow OTP delivery with CloudVNO Verify and Number Intelligence, cutting fraud attempts by 73% and reaching 99.97% verification uptime.
The Challenge
8–12 second OTP delivery gave fraudsters an open interception window
PayGuard processes transaction verification for a payment platform handling over $500M in monthly volume. Every high-value transaction required an OTP sent to the customer's registered phone number. Their previous verification provider averaged 8–12 seconds for OTP delivery — a window long enough for attackers using SIM swap attacks and SS7 intercept techniques to capture codes before the legitimate user received them. Fraud rates were climbing month over month, triggering increased scrutiny from card networks and threatening PayGuard's payment processor relationships. The team had no way to distinguish high-risk phone numbers from legitimate ones at the time of verification, so every number was treated the same regardless of signals like recent SIM swaps or VoIP registration.
The Solution
Sub-3s OTP delivery with number intelligence for real-time risk scoring
CloudVNO's Verify API delivers OTPs through direct Tier-1 carrier routes, bypassing aggregator networks that add latency and interception risk. PayGuard's average delivery time dropped from 8–12 seconds to 2.1 seconds — too fast for most SS7-based interception attacks. Alongside speed, CloudVNO Number Intelligence gives PayGuard a real-time signal layer: every verification request is scored for carrier type, recent SIM swap activity, porting history, and VoIP/landline classification before an OTP is dispatched. High-risk numbers trigger step-up authentication rather than sending a code into a potentially compromised channel. Number Intelligence API responses arrive in under 200ms, adding no perceptible delay to the checkout flow.
Products used
The Results
Measurable outcomes
- OTP delivery time dropped from 8–12 seconds to 2.1 seconds average
- Fraud attempts fell 73% in the first quarter after deployment
- Verification system uptime reached 99.97% — no planned or unplanned downtime in 6 months
- SIM swap detection blocked 1,200+ high-risk verification attempts in month one
- Card network fraud incident rate dropped below the threshold for enhanced monitoring
“Sub-3-second OTP delivery closed the window that fraudsters were exploiting. Combined with SIM swap detection, our fraud rate dropped by 73% in a single quarter.”
James Okafor — Head of Security, PayGuard
Close the fraud window with faster, smarter OTPs
Sub-3-second OTP delivery and real-time number intelligence for SIM swap detection. Protect your users without adding friction.