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How an API-First Company Fixed Sign-Up Verification Fraud and Cut Costs by 62%

Blog post from Prelude

Post Details
Company
Date Published
Author
Rowan Haddad
Word Count
1,818
Company Posts That Month
3
Language
English
Hacker News Points
-
Post removed?
No
Summary

SerpApi, an API data provider with a free tier, found that its phone verification process had become a target for SMS pumping, in which attackers triggered premium messages without intending to create accounts, contributing to average Twilio bills of about $30,000 per month and blocking some legitimate users through broad prefix restrictions. After investigating failed verifications and country-specific cost spikes, the company switched to Prelude, citing improved traffic visibility, more responsive support, and an API migration that took only a few engineering hours. SerpApi reported that the change reduced its monthly verification invoice by 62%, lowered messaging charges by 69%, reduced the cost per successful verification by 47%, and raised overall verification conversion by 14 percentage points; in Italy, where both pumping and legitimate-user blocking were prominent, conversion reportedly increased from 2.4% to 91.5% while messaging costs fell 99.7%. Prelude also identified subsequent suspicious traffic patterns, including an attack from Pakistan, and SerpApi is now considering WhatsApp verification in markets such as Brazil where it may offer better delivery and lower costs.

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