An OTP is a security code that can be used once for a login attempt. It reduces the chances of risks and gives high security. OTP passwords are safer than static passwords made by users themselves.
A one-time password has become the standard method. It is a string of numbers sent to the user’s phone number via SMS or by email that can only be used once. It usually has six digits but can vary in different circumstances.
What is OTP used for?
It is usually created to make a transaction. OTP has numbers but can also have letters and alphanumeric characters.
OTP is the second step of authentication as it is more secure than the static password you create. Your static password might be compromised, but a dynamic OTP stays more secure.
IDFC FIRST Bank offers unparalleled security, allowing you to conduct transactions without worrying about data or money loss.
How does a user get a one-time password?
An OPT is easy to get and easy to use, too. Here’s how to get an OTP: Imagine logging into an online bank. You will need an OTP code for verification. The organization will send you a code via WhatsApp, phone call, sms, or email.
After getting a code, you must put it along with your details. This seems an easy and simple method, and you are in. The organization makes this magical code that can be used once.
HOTP vs. TOTP
The HOTP and TOTP are based on changed algorithms that generate the codes. You can differentiate them by figuring out their differences. HOTP stands for hash-based OTP while TOTP stands for time-based OTP.
In HOTP, the code made by the algorithm will expire after one-time use. This is also called an event-based OTP. For the next use, you will be required to request again to have a code. While in TOTP, the moving factor is time. This is known as app-based authentication. This OTP will be valid for a specific time.
After getting issued, the makers create the new code with a backend authentication server. Then the user enters the code algorithm and the generator matches this code for immediate validation.
Are OTPs secure?
Studies show that passwords are a weak form of identity and businesses lost because of human error the previous year due to the wrong passwords. To overcome this, businesses make OTP systems to serve people and reduce the loss rate.
The main purpose of OPTs is to educate people about the best method, simply sending them a string of numbers to help them maintain their privacy. Two-factor authentication enhances the security level.
However, according to organizations, OTPs are also vulnerable to hackers so they make SIM-based authentication too.
What is OTP in debit card and credit card transactions?
Your debit-cum-ATM card transactions need OTP in certain conditions. However, some banks have enabled OTP authentication for higher cash withdrawals.
Most credit card transactions need an OTP, except when paying at a POS machine. You must enter it to approve the transaction before it expires. The validity of OTPs varies, although they generally range from a few seconds to up to a minute and more.
What are the benefits of OTPs?
OTPs have become universal throughout the world and can be sent through resources. They are easy to use and understand. Organizations are glad to provide security and privacy to their users, they can safeguard sensitive information with the help of OTPs.
There are many benefits such as data protection, lessened fraud rates, accessibility on mobile devices, ease of understanding, and more.
Stop identity thieves in their tracks
The use of OTPs makes it harder for customers to reach their accounts. No one reached the customer’s account without permission or notification. Let’s say the person from the system wants to approach your account, they need the code to access it. The code will appear on the authorized person’s phone via sms or email so they might need that code.
The organization immediately sends the verification code if your account tries to be logged in by yourself or others. This allows users to stay updated about their accounts.
Easy to implement across multiple channels
It is fast, easy to comprehend, budget-friendly, and accessible. It has become a widely spread method like WhatsApp, Rich Communication Services (RCS), email, and more.
Channels like RCS and WhatsApp are effective for OTPs because they allow your brand’s messages to come from verified profiles straight to your customers’ inboxes. This gives a layer of trust and reduces the risk of fraud like smishing, ensuring your customers can spot real messages from your business at a glance.
Why Would You Use OTPs?
Many OPTs are sent daily via SMS because it is the most used method. People keep their cell phones close to their hands all day. As far as this question is concerned, you should use this to maintain privacy. This safe method is used to confirm someone is who they say they are.
You can use this to stay protected from cybercrime and save your organization against the catastrophic effects of fraud on your business. The risk of fraud vanishes and the user doesn’t ask to fill in his username and password but also needs something he “has” to complete the login.
Conclusion
An OTP has become the standard method. It is a string of numbers sent to the user’s phone number via SMS or by email that can only be used once. It usually has six digits but can vary in different circumstances.
The main purpose of OPTs is to educate people about the best method, simply sending them a string of numbers to help them maintain their privacy. Two-factor authentication enhances the security level.
FAQs
What can OTPs be used for?
OTPs can be used for Online banking, E-commerce, Identity verification, Password recovery, Healthcare data access, and multi-factor authentication.
Why Is a One-Time Password Safe?
Because it is simple, a surprising depth of technology goes into sending an OTP to a customer’s cellphone.
