In a world where corporate telecom fraud is rampant, wouldn’t it be nice if there was a way to know you’re talking to the right person?
One-time passwords (OTP) and two-factor authentication (2FA) have proven to be effective solutions to protect users around the world. In fact, the demand for mobile security is so strong that the global 2FA market is expected to grow to around $3.2 billion during the same period.
OTP is a very simple and effective way for organizations to verify and protect the personal data of their customers and employees. If you want to learn more about how you can instantly validate your customers anywhere in the world and save your organization time and money, this guide is for you.
A one-time password (OTP) is an identity verification tool used to authenticate users logging into an account, network, or system. Users are given a password that contains a unique series of numbers or letters that can be used once to unlock.
How can I get a one time password?
For end users, getting the OTP is very easy and this makes the experience safe and smooth. Here is an example.
Step 1 : A customer tries to log into their online banking account from their phone.
Step 2: You do not recognize your bank. To protect user information, we recommend sending passwords via SMS, phone call, notification, or email.
Step 3 : Choose your preferred delivery method and your client will receive the OTP key within seconds.
Step 4 : Users log in, enter their password, username and password and voila – they have full access to all online banking tools.
Pretty cool, right? All kinds of magic is done behind the scenes to generate this one-time password and send it to this screen.
How does a one time password work?
The generation of an OTP and authentication are jointly identified by a token (or shared secret) each time a user attempts to access a system or perform a transaction on a disabled device.
First, the user’s OTP generator uses the Hash Message Authentication Code (HMAC) algorithm to generate a new random code for each access request.
As the name suggests, all OPTs work only once, but tickets can be one-time conditional (HOTP) or time-based (TOTP).
HOTP vs. TOTP
The main difference between hashed-based and time-based OTPs is the moving factor the algorithm uses to generate the code:
Hashed based OTPs :
- The moving factor is a counter
- Request number is included in the password
- Expire after use or a new OTP requested
- Also known as event based OTPs
Time based OTPs :
- The Moving factor is a time
- Time is included in the actual password
- Expire after short amount of time
- Also known as app based authentication or software tokens
What are the benefits?
- stop impersonating
- hard to understand for foreigners
- Troubleshoot password issues with IT support
- Easy integration and scalability
- Better user experience
- convenience and ease of use
- Improve fraud and data protection
Stop identity thieves in their tracks
Companies that use OTP for user authentication make it extremely difficult to hack into customer and employee accounts and steal personal information.
In a demo, let’s see what happens when a stranger tries to access someone else’s account. Unauthorized users are not asked to give codes. But it seems strange.
Organizations can only guess whether the login was legitimate or not, but users soon realize something is wrong and take steps to further protect their accounts by updating their passwords.
A verification email can also be sent to your mobile phone number or email address if another unlocked device can access your account. If desired, system owners can easily report unusual activity with the push of a button.
Instead of locking a user’s account with any sign of suspicious activity. Which would be extremely frustrating every time it actually is the user, the user is in complete control. And as an added bonus, these types of alerts let people know that businesses are activity monitoring and protecting their personal information, which goes a long way to earn trust!
Five bonus tips to keep your password safe
Never share passwords: The easiest way to keep a secret is to keep it a secret.
Do not use the same documents for multiple accounts: this limits the potential risks if one of your accounts is compromised.
Use numbers, special characters, and upper and lowercase letters: Case-sensitive passwords that contain numbers and symbols are much harder to guess.
Be random if possible : personal information can be easily found online, so you don’t want your password to contain obvious information
Use SIM card-based authentication methods: Flash call authentication and identity authentication, for example, require the use of a mobile device, making it more difficult for opportunistic hackers.