SOURCE: PhoneFactor

PhoneFactor

May 19, 2010 10:05 ET

ClassifiedAds.com Teams Up With PhoneFactor to Prevent Online Fraud

PhoneFactor's Phone-Based Authentication Helps Confirm Ad Authenticity

OVERLAND PARK, KS--(Marketwire - May 19, 2010) -  With thousands of ads posted every day, ClassifiedAds.com, a top five classified ads website, wanted to ensure that only valid listings are posted on its website. ClassifiedAds.com deployed PhoneFactor to verify the authenticity of classified ad posts, dramatically reducing the risk of online fraud while eliminating the time and cost associated with their manual screening processes.

PhoneFactor's phone-based two-factor authentication makes it harder for criminals to commit fraud since the advertiser has to provide a real, working phone number when posting to the site. The over two and a half million customers who visit ClassifiedAds.com every month have peace of mind knowing advertisements posted on the website have been verified as legitimate.

"In order to ensure scammers aren't posting fraudulent ads on our website, we implemented PhoneFactor to allow us to verify the ads being posted," said Edward Yim, president of ClassifiedAds.com. "Eliminating fraud on the website is critical to us. The low cost associated with deploying PhoneFactor's phone-based two-factor authentication system allows us to provide the best possible service to our customers at a great cost saving."

When users looking to advertise on ClassifiedAds.com initiate a posting, they are required to enter a phone number. PhoneFactor automatically places a call to the user to verify that the phone number is legitimate. To complete the transaction, the user types a random PIN displayed on the online log-in screen into their mobile or landline telephone.

"PhoneFactor's simple process of authenticating users and their actions via a phone call is being rapidly adopted for both enterprise and consumer applications as a broad range of online fraud continues to increase," said Steve Dispensa, CTO, PhoneFactor. "Everyone has a phone, so the solution is inherently scalable and cost effective. Because PhoneFactor uses an out-of-band authentication channel (the telephone network), it is also highly secure."

Prior to deploying PhoneFactor, ClassifiedAds.com used a manual screening method to review each ad as it was posted. This made the approval process for each ad last between 10 minutes and several hours. Switching from manual review to PhoneFactor offers a significant decrease in the time it takes to approve a posting. In addition, PhoneFactor saved ClassifiedAds.com more than 40 percent over the costs associated with third-party and in-house screening services. PhoneFactor also allows ClassifiedAds.com employees to redirect time spent manually calling to verify ads to more value-added opportunities.

About PhoneFactor
PhoneFactor is a leading provider of multi-factor authentication services. The company's award-winning platform by the same name uses any phone as a second form of authentication. PhoneFactor's out-of-band architecture and real-time fraud alerts provide strong security for enterprise and consumer applications. It is easy and cost effective to set up and deploy to large numbers of geographically diverse users. PhoneFactor was recently named to the Bank Technology News FutureNow list of the top 10 technology innovators securing the banking industry today and a finalist in 2010 SC Magazine Reader Trust Awards.
Learn more at www.phonefactor.com.

About ClassifiedAds.com
ClassifiedAds.com is a free online classified ads website where users can post listings for cars, jobs, pets, real estate, personals and everything else. ClassifiedAds.com is one of the fastest growing online classified ads websites, with over 2M visitors per month searching millions of items listed for sale on the website. ClassifiedAds.com is one of the original and largest online classified ads websites, connecting buyers and sellers nationwide and around the world.

Contact Information

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    Veneta Lusk
    Pierpont Communications, Inc.
    (214) 217-7300 x 1310
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