[HN Gopher] How SMS fraud works and how to guard against it
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       How SMS fraud works and how to guard against it
        
       Author : apuchitnis
       Score  : 74 points
       Date   : 2023-02-28 18:13 UTC (4 hours ago)
        
 (HTM) web link (apuchitnis.substack.com)
 (TXT) w3m dump (apuchitnis.substack.com)
        
       | AdamJacobMuller wrote:
       | This makes the assumption that Twitter blocked it due to SMS
       | fraud. While that's a plausible theory an equally plausible
       | theory is that they were worried about account hijacking and
       | security (and allowed twitter blue subscribers to continue to use
       | it on a you can pay me to be stupid context) which seems equally
       | plausible.
       | 
       | I take issue with a lot of the assumptions in the article but
       | this is funny:
       | 
       | > Identify and block premium rate phone numbers, using
       | libphonenumber. Whilst this seems promising, I don't know how
       | reliable the data and how effective this approach is.
       | 
       | here's this purpose-built and well maintained* library from
       | google which does exactly what I want but i'm not even going to
       | consider it.
       | 
       | * the actual number database has been updated 5x so far this
       | year:
       | https://github.com/google/libphonenumber/commits/master/meta...
        
         | apuchitnis wrote:
         | author here: Hey Adam - Elon has mentioned SMS fraud being the
         | reason for blocking it on several occasions. See here:
         | https://commsrisk.com/elon-musk-has-radical-solution-
         | for-a2p....
         | 
         | Re libphonenumber: I think you misread me? I was definitely
         | saying consider it :) I just don't have much personal
         | experience with that approach.
        
         | cfn wrote:
         | Elon Musk said that they were being fleeced by SMS fraud when
         | the change was announced.
        
       | singleshot_ wrote:
       | Fraud requires that someone make a misrepresentation. Who makes a
       | misrepresentation when SMS fraud is committed? What is the
       | misrepresentation?
       | 
       | Is there any chance that this isn't actually fraud and that
       | companies who send out tons of text messages to any number a
       | person specifies are just paying for their extraordinarily poor
       | design?
        
         | Tijdreiziger wrote:
         | The attacker misrepresents themselves as a legitimate user who
         | just wants to set up 2FA on their account.
        
         | apuchitnis wrote:
         | I think the fraud here is that the user isn't an actual,
         | legitimate user of the web service. Maybe 'user fraud' is a
         | better term to use here.
        
         | robust-cactus wrote:
         | It's definitely fraud and it's definitely detectable when a
         | 10000 block prefix of numbers sends 100x more SMS than every
         | other prefix out of the blue.
         | 
         | It's basically a referral marketing campaign where the
         | fraudster does revenue share with local sketchy infrastructure
         | providers.
        
       | pg_bot wrote:
       | If you haven't done this, set the MaxPrice field when sending SMS
       | with an API provider such as Twilio. The message will fail to
       | send if the cost of the sms exceeds the price you set.
       | 
       | https://support.twilio.com/hc/en-us/articles/360014170533-Us...
        
         | apuchitnis wrote:
         | author here: awesome, thanks for sharing this pg_bot! :)
        
           | kyledrake wrote:
           | What would be the reasonable value to set maxprice to?
        
             | ceejayoz wrote:
             | That's up to you; Twilio's pricing varies from country to
             | country. US is less than a penny per text; Russia is $0.70
             | each. Set according to your needs.
        
             | toast0 wrote:
             | Depends on where you send SMS. Ten cents should cover most
             | of the world, but there will be exceptions.
        
       | grammers wrote:
       | Ignore SMS from anyone. Done.
       | 
       | Noone send them anymore.
        
         | jalk wrote:
         | You should probably read the article - it's about tricking
         | services to send SMS' to your premium number so that you earn
         | money every time you trick the service into sending a text
         | message to you
        
         | JohnFen wrote:
         | > Noone send them anymore.
         | 
         | Except for the overwhelming majority of everyone I know.
        
       | waynesonfire wrote:
       | Good, SMS for auth is terrible. Let me use my yubikey or
       | authentication app.
        
       | Arch-TK wrote:
       | I really want to know, why has everyone moved to SMS 2F"A"?
       | 
       | What was wrong with authenticator applications?
       | 
       | Were they really THAT user unfriendly?
        
         | lotsofpulp wrote:
         | Because phone number also provided a universal identifier that
         | can make the data worth more when selling it.
        
         | crazygringo wrote:
         | People lose their phones and then your authenticator app
         | doesn't work anymore, even if you restore from backup. And then
         | the recovery mechanism is often a giant pain.
         | 
         | Yes, that's pretty user unfriendly.
         | 
         | It's a lot more common to lose your phone than lose your phone
         | number.
        
           | mcherm wrote:
           | There are numerous tools, Google Authenticator and Authy for
           | example, that protect against this by securely storing the
           | keys. In fact, I would venture to say that MOST users of
           | authentication apps are using ones that provide a backup in
           | case the phone is lost.
        
         | rlpb wrote:
         | AIUI, EU regulation requires 2FA in finance now, but the 2FA
         | must also confirm details such as a target account and/or
         | amount.
         | 
         | Authenticator apps (at least those that use TOTP/HOTP) can't do
         | that. SMS can. So can card readers but people hate having to
         | carry them around. So we're stuck with SMS.
        
         | velavar wrote:
         | I don't think that folks so much "moved" to SMS 2FA as much as
         | were with it from the start. SMS 2FA is so ingrained in the
         | finance/fintech industry that it's pretty rare for me to see a
         | financial company offer the option to set up an Authenticator
         | 2FA. Also, there is always some part of the consumer population
         | that is still not on a smartphone and even if they are, they
         | may not be "app-savvy" where they know how to install or use an
         | authenticator app. For this reason, I think most finance
         | companies will steer clear of the Authenticator app and go
         | directly for SMS 2FA or worse, email 2FA.
        
           | claytongulick wrote:
           | I prefer SMS for 2FA because some authenticator apps get tied
           | to a device.
           | 
           | I'm worried about losing my phone and being locked out.
           | 
           | With SMS, I can show my ID to the Verizon rep, get a new
           | phone, and I'm good to go.
        
             | tester457 wrote:
             | Only downside is the verizon rep giving your sim to someone
             | who deepfaked your voice.
        
           | ilamont wrote:
           | Nobody in my family - parents, kids, spouse - knows what an
           | authenticator app is or would what to do if presented that as
           | an option, although my teen could probably figure it out.
           | 
           | For everyone else, it would be a cascading series of
           | installation and password and app switching and immediacy
           | problems. This would create a great deal of frustration, and
           | ultimately a call to family tech support (me) or the service
           | provider _if human tech support is an option_ which is not
           | the case for many companies such as Google and social media
           | firms.
        
         | chatmasta wrote:
         | Have they? It seems the trend is to support Authenticator apps
         | (i.e. one-time scan a QR code to a TOTP URL that I store on my
         | own device). I haven't seen too many products that support TOTP
         | 2FA but _require_ SMS 2FA.
         | 
         | Some companies do require a phone number to setup an account
         | (because it's the best proxy we have for "one per real person"
         | or "expensive for one person to get many of"), but if they're
         | competent then you can remove it as a 2FA option if you replace
         | it with a TOTP code. [0]
         | 
         | If you ask me, it should be illegal to require SMS 2FA without
         | an opt-out to TOTP. Perhaps relatedly, I'm also curious about
         | the percentage of Twilio revenue from 2FA messages.
         | 
         | [0] RANT: Google, in typically creepy fashion, makes it
         | difficult to enable TOTP without first either providing a phone
         | number, or downloading a Google app to "tap to login!" on your
         | phone. But they do allow you to setup a hardware token, so I
         | found a workaround [1] to configure TOTP without providing a
         | phone number, which is (perhaps ironically) to use Chrome
         | DevTools to create a virtualized WebAuthn device and add it as
         | a hardware token 2FA option. Then it's possible to setup TOTP
         | and remove the virtualized device, leaving you with only TOTP
         | 2FA and no com.google apps begging you for entitlements on your
         | phone.
         | 
         | [1] https://superuser.com/a/1759306
        
         | cultofmetatron wrote:
         | my phone recently just died. only two years old. all my
         | authenticator stuff is gone. sms is fine, I just move the sim
         | to a new phone
        
           | lotsofpulp wrote:
           | I use Strongbox to backup TOTP in Keepass databases.
        
             | malfist wrote:
             | That's good for you, is grandma going to do that?
        
           | ufmace wrote:
           | Yeah that's the problem - TOTP with a basic app is pretty
           | easy to use, but making sure you're protected from a phone
           | suddenly lost or broken scenario is tougher, and you may not
           | know you need to do it until it's too late. How many people
           | actually store those backup codes properly or go to the
           | trouble to use a third-party app that supports backups and
           | actually do backups?
        
         | malfist wrote:
         | Because lots of us upgrade phones every couple years, or have
         | dropped a phone and had it break, or get water in it or
         | something.
         | 
         | It's all too easy to realize after the fact you needed to
         | transfer something between the old phone to the new phone to
         | keep the authenticator working. Sometimes that's not available
         | (phone damaged), or don't realize you need it until after
         | you've already sent the phone in for trade in.
         | 
         | So yes, they are user unfriendly.
        
       | molodec wrote:
       | The article is describing one type of SMS Fraud, but I think
       | Twitter got attacked using SMS Traffic Pumping Fraud. Twilio has
       | the explanation https://support.twilio.com/hc/en-
       | us/articles/8360406023067-S...
        
       | lgats wrote:
       | where can i get a premium sms phone number? ( for research
       | purposes )
        
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       (page generated 2023-02-28 23:00 UTC)