Trust is the backbone of ensuring brand-consumer relationships. But with customer data breaches on the rise, businesses across all industries must take extra precautions. In 2024 alone, the average cost of a data breach skyrocketed to $4.88 million, a 10% increase from the previous year. Furthermore, cybercrimes involving stolen credentials are on the rise, with a 71% year-over-year increase.
Data breaches don’t just compromise consumers. They can also erode brand trust, cause reputational damage, and lead to substantial legal repercussions.
As such, companies must develop robust security measures to better protect their customers and themselves. Two-factor authentication (2FA) remains one of the most effective methods for combating breaches.
Here’s how leading brands in eCommerce, FinTech, and travel are using Mitto’s Verification tools to:
- Prevent fraud and fake bookings
- Reduce chargebacks and unauthorized transactions
- Secure sensitive customer data
- Boost user confidence and long-term trust
1. eCommerce: Stopping Chargebacks Before They Start
Challenge
eCommerce platforms are magnets for fraudulent activities, ranging from account takeovers to the use of stolen credit cards. One of the most costly outcomes of this fraud is chargebacks, which can quickly eat into margins and even lead to merchant account termination.
How Verification Helps
Verification adds a layer of identity assurance before the transaction is even completed. By deploying 2FA sent via SMS, eCommerce shops can ensure that the user making a purchase is the legitimate account holder.
Use Case in Action
Imagine a customer is attempting to make a high-ticket purchase. Let’s say, $2,000 worth of electronics. Before authorizing the transaction, the retailer sends a one-time passcode (OTP) to the customer’s registered phone number. Only after this OTP is confirmed does the purchase proceed.
This simple step:
- Confirms user intent
- Prevents unauthorized purchases using stolen credentials
- Provides strong documentation in the case of a chargeback dispute
Additionally, Verification workflows can be embedded at key risk points, such as account logins, further reducing exposure to fraud.
Results
- Reduces fraudulent activity by up to 99.9%
- Improved confidence in transaction security
- Higher completion rates for legitimate customers due to seamless UX
2. FinTech: Securing Transactions and Customer Data
Challenge
In FinTech, trust is everything. Whether managing digital wallets, mobile banking apps, or crypto exchanges, platforms must meet stringent data privacy regulations while deterring increasingly sophisticated fraud attempts.
How Verification Helps
FinTech companies use Mitto’s Verification to protect the entire customer lifecycle, from onboarding to transaction execution and ongoing account access. This includes:
- Phone number verification during sign-up
- OTP-based step-up authentication for sensitive actions
- Transaction alerts and confirmations sent via SMS
Use Case in Action
A customer logs in to a digital banking app from a new location or device. Instead of simply allowing access, the app initiates step-up verification via a secure channel, sending a six-digit OTP via SMS API. Once the code is confirmed, access is granted.
For transactions, a double-confirmation flow might be used: after the user initiates a $5,000 transfer, they receive an SMS confirming the amount, recipient, and a verification code. Only after the code is entered is the transaction processed.
This layered verification strategy:
- Prevents fraudulent logins or fund transfers
- Helps comply with compliance regulations
- 2FA blocks 100% of automated bot attacks
Results
- Fewer fraudulent account access attempts
- Increased user satisfaction with real-time alerts
- Reduced customer churn due to enhanced security
3. Travel: Preventing Booking Fraud and Boosting Confidence
Challenge
The travel industry has experienced a surge in booking fraud, with 36% of transactions suspected to be fraudulent attempts. Hackers use stolen cards or fake identities to book flights, hotels, and vacation packages, only to cancel or disappear, leaving brands with lost revenue and frustrated customers.
How Verification Helps
With high-value, time-sensitive transactions, travel brands can’t afford to take chances. Verification tools, especially real-time phone number and identity checks, help ensure that the person booking is who they claim to be.
Use Case in Action
A customer books an international flight and opts for a flexible cancellation policy. Before issuing the ticket, the platform initiates phone number verification through SMS OTP. For added protection, a confirmation link is sent to their WhatsApp account asking them to verify passport details or traveler information.
Additionally, Mitto’s Verification APIs can be integrated directly into authentication platforms, such as Auth0, making it easier for businesses to boost protection.
Benefits include:
- Reduced fraudulent bookings and last-minute cancellations
- Improved compliance with travel documentation requirements
- Greater customer trust when interacting across touchpoints
Results
- Drop in fraudulent bookings
- Shorter customer service resolution times
- Increased loyalty program signups
Why Mitto Is the Verification Partner of Choice
Mitto offers robust, omnichannel verification solutions that are:
- Global and Scalable: Connect with customers in over 160 countries with guaranteed delivery
- Privacy-First: Fully compliant with GDPR, PSD2, and other data regulations
- Flexible and Developer-Friendly: Easy API integration, real-time analytics, and customizable workflows
Increase Trust and Security with Mitto
Whether you’re protecting a shopper’s checkout experience, securing mobile banking apps, or ensuring a traveler’s booking is real, the right verification strategy can make all the difference.
At Mitto, we help eCommerce, FinTech, and travel brands secure their user journeys from start to finish. If you’re ready to reduce fraud, lower chargebacks, and win your customers’ trust, let’s talk.
