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July 10, 2017

Will a Rise in A2P Messaging Lower Customer Trust?

As we discussed recently, the A2P SMS market is predicted to grow steadily in the coming years. This forecasted growth is due in large part to the fact that customers actually enjoy SMS outreach from companies. SMS messaging is a convenient way for companies to let customers know about coupons, special offers, sales and so on.

For customers, it’s easy to opt-in to SMS text alerts. All you have to do is sign up online, and you can easily unsubscribe by messaging something like “Stop” or “No” to the automated number. The easy sign up and opt out options for A2P SMS messaging are another reason it’s one of the most convenient, and therefore more popular, outreach options.

So, what’s the problem? A2P SMS messaging is set to rise, which means customers will be getting more outreach and more companies will be making money. That’s all good news, right? Well, it would be if we lived in a perfect world where hackers didn’t exist. But, alas, we don’t live in that world, and hackers seem to enjoy hacking into A2P messaging systems via grey routes.

Through grey routes, fraudsters are able to spam customers with unwanted outreach, whether they signed up for company alerts or not. This not only violates the TCPA by harassing customers, but it also causes potentially irreparable damage to the company’s reputation. If a company suddenly starts spamming customers through text, it’s going to become difficult for said customers to trust the company at all.

With a lack of trust comes a lack of business; that an inevitable fact. People tend to ignore the things that annoy them, which means that companies harassing customers –whether intentionally or not –are bound to lose business. That means fewer sales, which is made worse by the fact that the company will be simultaneously slammed with fines for breaking TCPA rules.

So, maybe the news that the A2P SMS market is set to rise isn’t such good news after all. That’s one way to look at it, or operators, marketers and so on can take action to protect themselves by investing in anti-fraud solutions. There are a number of companies out there seeking to help organizations protect their assets and identities. By getting ahead of the threat, organizations can ensure that the rise in A2P messaging has nothing but a positive effect on their operations.

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Industry Insights

(MobileID) Proactive Fraud Prevention

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Product Documents

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