The Future of Number Verification APIs: Trends & Innovations Businesses Should Know
The Need for Smarter Identity Verification
In today’s digital-first economy, identity verification has become a cornerstone of secure and seamless user experiences. Yet, the stakes have never been higher.
In 2024 alone, Malaysia recorded RM54 billion in scam-related losses – a staggering figure equivalent to 3% of the nation’s GDP. Over 60% of scam cases in Malaysia involve investment scams (23%), identity theft (21%), and e-commerce scams (20%), highlighting the urgent need for stronger digital security and public awareness. Compounding the issue, SMS and text scams surged by 8% compared to the previous year, exposing the vulnerabilities of outdated verification methods like SMS-based One-Time Passwords (OTPs).
As cyber threats grow more sophisticated and user expectations rise, the need for smarter, secure verification methods has never been more urgent. This shift marks a pivotal moment for businesses to modernise their authentication systems – and the Number Verify API offers a timely, effective solution.
What Is a Number Verification API?
The “Number Verification” API is a service that enables the seamless authentication of a mobile device by verifying that the provided mobile phone number is the one used in the device.
Accurate and efficient customer identity verification is essential to preventing identity fraud and comply with regulatory requirements whilst enhancing the user experience by minimising friction for existing customers. By leveraging real-time mobile network data, this API strengthens authentication while eliminating the vulnerabilities and user inconvenience associated with traditional SMS-based verification as only verified mobile numbers will be able to proceed.
This then enables seamless, secure, and convenient sign-ins and transactions, helping businesses reduce fraud risk, streamline onboarding, and maintain compliance with regulatory standards.
How Does It Work?
The Number Verify API uses mobile network intelligence to authenticate users based on their mobile number, ensuring a smoother and more resilient authentication process.
Two mechanisms are leveraged to obtain information:
Network-based:
Network operator knows to which subscriber a network-connected mobile phone belongs and what its associated phone number is or,
SIM-based:
Authentication mechanism based on the identification of the subscriber’s SIM installed in the user’s device.
Here's how the process works in detail:
User Input:
The user enters their mobile number into an application (via mobile or web app) during key interactions such as registration, login, password reset, or in-app transactions.
Silent Authentication:
Once the number is submitted, the API initiates a background authentication process. This is done silently, without requiring user interaction or sending an OTP.
Mobile Network Matching:
The API communicates with Maxis’s mobile network to verify that the number entered matches the number actively being used on the device. This is achieved through SIM-based authentication and network-level checks, ensuring the number is legitimate and currently active.
Real-Time Verification:
The verification is performed in real time, leveraging live network data to confirm the user's identity instantly.
Access Granted:
Upon successful verification, the user is seamlessly redirected to the app’s home page or the next step in the workflow, completing the process without delays or manual input.
This approach not only enhances security by reducing reliance on vulnerable SMS channels but also improves user experience by reducing friction and streamlining authentication.
Why It Matters: Security, Fraud Prevention & User Experience
By integrating a robust identity authentication system, businesses not only protect themselves from risk but also deliver a smoother, more secure, and user-friendly digital experience. Here are the key business benefits of the Number Verify API:
Operational Efficiency:
Automates verification processes and minimizes manual account recovery, leading to significant cost savings.
Ensures Regulatory Compliance:
Aligns with industry standards and legal requirements (PDPA-compliant), helping businesses avoid penalties and reputational damage.
Strengthens Cybersecurity:
Adds a critical layer to the organisation’s digital defense strategy through secure user verification mechanisms.
Reduces Fraud & Identity Theft:
The Number Verify API strengthens fraud prevention by enabling seamless, network-level identity authentication that helps detect SIM swap attempts and protect against OTP hijacking.
Enhance User Experience & Conversion Rates:
Enables seamless and secure access, reducing friction during onboarding and login while building user trust and customer retention. Its transparent operation ensures users enjoy a smooth experience without interruptions, leading to higher conversion rates and reduced abandonment during critical interactions.
Real-World Applications of Number Verify API
Fintech & Banks:
In Malaysia’s financial sector, both digital banks and traditional incumbents are under increasing pressure to modernise their identity verification processes. Fast, secure onboarding is no longer optional – it’s a regulatory and competitive necessity.
The Number Verify API, when paired with a KYC (Know Your Customer) Match API, enables real-time identity checks that reduce fraud, accelerate account approvals, and improve user satisfaction across all types of financial institutions.
This shift is further reinforced by Bank Negara Malaysia’s directive to phase out SMS-based OTPs, pushing banks to adopt more secure, network-based authentication methods.
For incumbent banks especially, this marks a critical moment to upgrade legacy systems and align with evolving standards. Number verification APIs offer a compliant, frictionless solution that meets regulatory expectations while enhancing customer trust and experience.
Ride-Hailing & Delivery Apps:
For gig economy platforms, both drivers and users must be verified continuously. Real-time identity verification ensures that accounts are linked to legitimate mobile numbers, reducing fraud attempts and improving platform integrity.
This strengthens the platform’s defenses against cyber fraud by minimising ghost accounts and unauthorized access attempts.
E-commerce & Marketplaces:
Online marketplaces face issues like promo code abuse, fake reviews, and duplicate accounts. Integrating a user verification API and phone number verification API can help authenticate real users at the point of registration or purchase, safeguarding your platform’s trust and safety metrics.
It also adds another layer of real-time identity verification at checkout, minimising the chances of fraudulent transactions.
Beyond Number Verification: How It Compares with Other APIs
| API Type | Primary Function | Use Case |
|---|---|---|
| Number Verification API | Confirm mobile number activity | Seamless identity verification and authentication |
| SIM Swap API | Detect SIM change | Account Takeover Protection |
| Location Verification API | Determines whether a mobile device is within the proximity of a specified geographical area | Location-based Fraud, Service Personalisation |
| KYC Match API | Validate user information with operators | Frictionless identity verification for onboarding |
This API ecosystem enables holistic protection, where each API contributes a different layer of intelligence and authentication.
From Trends to Innovation: Evolving Identity Authentication
The current landscape of identity verification is shaped by three urgent trends:
Rise in Cyber Fraud:
Online transactions are increasingly targeted by scammers, and traditional SMS OTPs are proving vulnerable to interception, spoofing, and SIM swap attacks. This has led to a shift towards more secure, phone-based verification methods.
Phone number verification APIs offer a stronger alternative by validating the authenticity of a user’s mobile number directly through telecom data. Unlike SMS OTPs, these APIs can:- Detect suspicious or inactive numbers
- Identify high-risk carriers or virtual numbers
- Prevent fraud before it reaches the user
This makes them a critical tool in reducing fraud exposure while maintaining a seamless user experience.
Tighter Regulations on Onboarding & Authentication:
Governments and regulators are enforcing stricter policies around how businesses onboard and verify users. Compliance now requires:
- Accurate identity verification
- Real-time fraud detection
- Secure data handling
Phone number verification APIs help meet these standards by offering telecom-grade validation that aligns with regulatory expectations. When integrated with other identity tools, they support a compliant and scalable onboarding process.
Rising Demand for Seamless Digital Experiences:
With more customers engaging through apps, websites, and digital platforms, businesses must ensure that identity verification is:
- Fast
- Mobile-first
- Frictionless
Phone number verification APIs are designed for this digital-first environment. They work silently in the background, verifying users without requiring manual input – ensuring both security and a frictionless experience.
These challenges are pushing businesses to rethink their approach—and that’s where innovation comes in:
Smarter Risk & Fraud Models
AI and machine learning are transforming the way APIs function. Future real-time identity verification tools will incorporate behavioural risk scoring and contextual analysis to enable adaptive verification workflows. This means more accurate fraud detection without affecting user experience.
Example:
To prevent account takeover fraud, banks are integrating telecom APIs – specifically the CAMARA API (SIM Swap Detection and Call Forwarding Signal APIs) into their fraud risk workflows. These APIs tap into real-time network-level behavioral data provided by mobile operators.
SIM Swap Detection API:
Checks if a user’s SIM card was recently changed. A sudden SIM swap is a strong behavioral signal of potential fraud, especially if it occurs just before a high-risk transaction.
Call Forwarding Signal API:
Monitors changes in call forwarding settings. Fraudsters often reroute calls to intercept one-time passwords (OTPs) or verification calls – an unusual change here is another behavioural red flag.
By combining data from the following APIs, banks can seamlessly detect suspicious activity during mobile verification and proactively protect users from account takeover fraud. This approach allows for real-time intervention without disrupting the experience for legitimate users.For a deeper dive into mobile security threats and how to defend against them with enterprise-grade solutions, read this guide on Choosing a Mobile Security Solution.
Password-less, Mobile-First Security
The identity authentication system of the future will rely more on passive, device-based verifications rather than actively requiring users to input passwords or codes. Expect an increase in phone number verification API use for frictionless authentication, especially in mobile-first environments.
Example:
A banking app allows users to log in without entering a password or OTP. Instead, when the app is opened, it silently verifies the user’s phone number using a phone number verification API in the background. If the number is confirmed as active and tied to the same device used during registration, the user is granted access instantly. This seamless login experience improves user satisfaction while strengthening end user security by eliminating vulnerable password and SMS-based methods.
Integrated API Suites
Rather than deploying isolated solutions, businesses will increasingly adopt bundled products that combine user verification APIs, phone number verification APIs, and fraud intelligence into a unified platform. This trend will allow companies to deploy an enterprise-grade business fraud prevention strategy with minimal integration effort.
Example:
A fintech startup partner with a verification platform that offers an all-in-one API suite. This suite includes a user verification API for KYC compliance, a phone number verification API for checking mobile number validity during sign-up, and a fraud intelligence layer that assesses risk based on device reputation and transaction patterns. By integrating this single suite, the company reduces development time, improves onboarding speed, and prevent fraud without juggling multiple vendors or complex integrations.
A Smarter, Safer Way Forward
As digital fraud continues to evolve, businesses must rethink how they verify identity – moving beyond outdated OTP systems toward more intelligent, seamless solutions. The Number Verify API is a prime example of this innovation, offering silent, real-time verification that enhances both security and user experience.
This shift is part of a broader transformation in identity authentication, driven by advancements in AI-powered threat detection, passwordless mobile-first security, and integrated API ecosystems. As noted by Forrester, identity-centric threat detection is increasingly powered by AI, enabling real-time remediation without disrupting user flow. Gartner also highlights the rise of identity governance platforms that unify access control across cloud and hybrid environments, ensuring scalable and secure authentication.
Maxis’s Mobile Identity reflects these innovations, combining telecom-grade APIs like Number Verify, SIM Swap Detection, and KYC Match into a unified platform. By embracing these innovations, businesses can build trust, reduce fraud, and offer the seamless digital experiences that today’s users expect.
Secure your business with Maxis Mobile Identity.
