Advisory: Startups Should Use Hosted SMS OTP APIs for Login Security

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A technical advisory recommends startups implement login flows using hosted SMS OTP APIs from providers like Twilio or Vonage. These services handle code generation, expiry, replay defense, and verification storage, reducing security risks. Building a custom system requires designing and maintaining complex security logic, which carries significant engineering and compliance burdens. The advice is particularly critical for fintech applications, where compliance notices must be logged separately from authentication events. Using a hosted service allows development teams to focus on core application logic rather than security infrastructure.

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