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Potential for Fraud Grows Alongside Enterprise A2P SMS Market


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Potential for Fraud Grows Alongside Enterprise A2P SMS Market

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June 27, 2017
By Michael Guta Contributing Writer

Short message service (SMS) is a quick and effective communications technology used by billions of people around the world. SMS has migrated to large enterprises, where it is often used for Application-to-Person (A2P) messaging. Enterprises have adopted A2P SMS to engage users within their organizations as well as their customers by delivering time sensitive alerts, authenticating users for online services and conducting surveys. This has spurred a steady growth in the enterprise market for A2P SMS, which, according to Future Market Insights (FMI), is going to be at a compound annual growth rate (CAGR) of 6 percent until 2025.


So what is A2P SMS?

Also called enterprise or professional SMS, A2P SMS lets you send mobile messages from an application to a mobile user. The communication is not initiated from a mobile phone like Person-to-Person (P2P) SMS. Organizations use business applications to send a message as direct communication. This means the recipient does not respond to the message, but they can interact with it, making it an ideal platform for engaging users.

The report, titled, “Enterprise A2P SMS Market: Global Industry Analysis and Opportunity Assessment, 2015 – 2025,” looks at the industry across verticals, regions and vendors.

Currently, A2P SMS is used by many industries including banking, travel, transport, gaming, healthcare, entertainment and hospitality, to name a few. The technology can be applied to deliver virtually any type of message that is part of a marketing campaign, breaking news, security authentication, transactional messages and more.

One of the fastest growing segments is in e-commerce and banking, financial services and insurance (BFSI). Companies operating in these industries are using A2P messaging services to deliver direct messages. This can be a one-time password (OTP) for processing customer verification during an e-commerce purchase or a promotion for a new product or service.

The use of A2P messaging by e-commerce and BFSI has pointed out a growing problem with SMS fraud. In some regions around the world, close to 20 percent of SMS traffic is spam or fraud related. Mobile phones are being hacked with increasing frequency and they are being exploited to launch attacks or worse. This includes SIM farming, premium rate fraud, app farming and installing malware, to name but a few of the threats users face.

Security is one of the challenges A2P SMS will face, but financial institutions, operators, marketers and providers of anti-fraud solutions, like iconectiv (News - Alert), are well aware of the threat landscape. 




Edited by Alicia Young

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