Case Study: OTP + Reverse Lookup Validation Enabled Safer Soft Pulls in a High-Risk Funnel
The Problem: Sensitive Data Requires Real Identity
A VeracityHub customer operating a high-intent consumer funnel needed to confirm a simple but critical thing:
Is this person real, and is this request truly authorized?
They were planning to run a soft credit pull as part of their qualification workflow. Even though a soft pull does not impact credit scores, it still involves highly sensitive personal and financial information — and it must be handled with care.
The challenge was that some inbound traffic originated from third-party marketing sources. Like many businesses, they relied on partners and affiliates to deliver legitimate consumers.
But increasingly, affiliate/lead fraud has created a dangerous reality:
- Consumers’ information can be submitted without true awareness
- The person “raising their hand” may not be real
- A bot or third party may be using stolen or recycled identity data
- Credit-related requests can be triggered by inauthentic submissions
This creates serious exposure:
- consumer trust damage
- complaint risk
- potential regulatory escalation
- legal liability for accessing or initiating pulls without valid authorization
Why This Was Hard to Solve
Many companies assume a form submission equals a real person and real intent — especially when affiliates claim compliance.
But “affiliate compliance” often breaks down in practice because:
- A form fill does not prove human presence
- A phone number does not prove identity
- A name and address can be fabricated or stolen
- The person may not be aware their information was used
This customer needed a verification approach that was:
- fast enough for real-time funnels
- inexpensive at scale
- defensible from a compliance standpoint
- and effective at stopping fake or unauthorized identity usage
The VeracityHub Solution: Two-Step Verification Before the Soft Pull
The client implemented a double-layer identity check before initiating any soft credit pull:
1) VeracityHub One-Time Passcode (OTP)
VeracityHub sent an OTP via SMS to confirm that a real person:
- was present in real time
- controlled the phone number submitted
- and could actively complete verification
This immediately filtered out bots, scripted submissions, and stolen identity attempts where the submitter did not control the phone.
2) VeracityHub Reverse Lookup & Data Append
Next, the client ran a Reverse Lookup / Data Append to confirm identity signals associated with the phone number.
This allowed the client to validate whether the user-provided information:
- aligned with known identity signals
- matched expected name/address patterns
- and passed basic reality checks
Only after these two checks did the client proceed with the soft pull.
Why This Matters: “Best Effort” is the Difference Between Risk and Responsibility
The client wasn’t looking for perfection — they were looking for defensible best-effort verification.
With OTP + Reverse Lookup in place, the client could confidently say:
âś… We confirmed real-time user presence
âś… We confirmed the person controlled the phone number
âś… We validated identity signals before accessing sensitive data
âś… We reduced the risk of pulling data on an unsuspecting consumer
This wasn’t just operational improvement — it was a meaningful compliance safeguard.
The Cost: $0.16 Per Record
The double-layer validation cost the client just:
- $0.08 for OTP
- $0.08 for Reverse Lookup & Data Append
- Total: $0.16 per record
For a high-intent funnel where a soft pull was being initiated, this was a small cost compared to the downside risk.
Results: Verified Authorization Before Sensitive Access
After implementation:
- Unauthorized / suspicious submissions were filtered out early
- Soft pulls were only run when the user demonstrated real-time control and identity alignment
- The client reduced exposure from affiliate fraud and bad data
- Internal compliance stakeholders had higher confidence in the workflow
- Consumer harm risk was materially reduced
The cost to improve trust was minimal, but the risk reduction was significant.
A Simple Risk Framing (Why This Pays for Itself)
The downside of running credit-related lookups on consumers who did not authorize it isn’t simply “lost conversion.”
It can lead to:
- consumer complaints
- brand trust collapse
- partner scrutiny
- compliance escalation
- legal risk
- expensive remediation costs
In comparison, $0.16 to establish identity and intent is a no-brainer.
Key Takeaway
When your funnel touches sensitive consumer data, you need more than a form submission.
OTP + Reverse Lookup creates a defensible verification layer that helps ensure:
- the consumer is real
- the consumer is present
- and the consumer is authorizing the request
Verification should happen before engagement — especially before sensitive access.
Want to Build a “Soft Pull Ready” Funnel?
If your workflow involves credit-related qualification or high-trust consumer engagement, VeracityHub can help you verify identity and authorization before you proceed.
Get Started or Contact Sales to learn more.
