A one time password is a time-based string of numbers or characters that are sent on a registered mobile number to authenticate the login/transaction process of an application or software. In the backend, OTP generators are used to produce unique codes every time. In most common cases one time passwords are 6-digit numeric codes but it could also be alphanumeric. An OTP always obeys a time limit to authenticate it. So it is also called TOTP. A one time password does not authenticate after the time limit, it expires if it exceeds.
With the evolution of technology, online services, financial and banking services, software approach for business, and social media made it easier. The hackers and scammers are always the risky entity. It is important to protect the gaining access into account, breaching into data and personnel information. So to safeguard the logins and passwords we add a curtain of two-factor authorization. The 2FA uses different techniques of verification, but we will talk about SMS OTP verification.
What are the benefits of One-Time Passwords (OTPs)?
Now you must have learned about the one time password. Let's talk about some of the benefits of OTP.
Unreiteratable code
OTP codes are dynamic in nature over static text passcodes. OTP generators produce dynamic and unique digits every time. OTP code provides full protection against repetitive text attacks. Fraudulent can guess or know about the rigid password by screen mirroring, a hard paper written (some users write the password on paper), auto-save cookies, etc. But the OTP secures access to the account.
Harder to Guess
OTPs are unguessable because they are produced by random text generator algorithms. Nobody knew what would come next. There is no way for a spammer to guess the right sequence of digits. One more thing is the time period of OTP authentication, it hardly gives 1 minute for the phisher to guess the right code. The randomness and time limit gives a safe platter to OTP that restricts successful phishing.
No risk if the static password exposed
Humans moreover keep the password the same across different platforms like social media, phone lock, and more. It's a human tendency that we mostly keep repetitive passwords. These credentials are highly probable to leak or fall into the wrong hands. The password can be used for financial portals, business portals, etc. An extra layer of one time password after the login credentials help breaches, even if the phisher made a valid login password.
Quick to integrate
One time passwords are not direct to send text. These SMS are triggered through SMS API. It is easy to integrate the OTP service by any organization into their application for authentication use cases.
Read more: Secure your Business Transactions: OTP Service
What are types of OTP?
The way of authentication may differ by use case. Let's talk about two factor authentication i.e. verify an additional layer for getting into the proof identity process. The 2FA can be used in different ways like:
Two factor authentication includes the physical and memorable parameters techniques to secure the access grant. For example secondary pins, security question banks, smartphone OTP, USB dongle software synchronization, fingerprint authentication, voice-word recognition and more.
Here we will discuss the one time password authentication
SMS OTP
This is the most common way of authentication in which an OTP code is received on a registered mobile number through text message. This OTP expires if not used within time.
Voice OTP
Some applications use the voice call OTP. In general, the text-to-speech converter is used to change OTP text into voice.
Email OTP
Email-based online accounts on different platforms will provide you with the email OTP each time you login into the account.
Push Notification
Push notification is a 2FA technique that uses a popup with different options on a mobile screen. The user receives a push notification on their phone when they log into your application account. The user has to tap on the same option on the mobile application that is on the login screen in the online application.
Some Vulnerabilities with OTPs
SMS OTP
SMS OTPs are device-based authentication. It is highly the same until your device is with you. If the device is cloned or in different hands, it makes a threat. A spammer can look into your saved passwords or can just generate new OTP if you enabled the device with a lock screen pop-up.
SMS OTPs are sent on registered mobile/sim that can be stolen or cloned. If that is your security access number, spammers can receive the one time password easily and can gain access to the authentication layer.
Read more: What is Fallback for SMS OTP
Hackers and phishers can also make signal bandwidth interception(SS7). By using that they can receive your SMS text in real-time. But this kind of phishing interruption is highly technical, Signal modulation devices and more digital gadgets are required. So these are very rare cases.
Once a hacker gets access to your OTP via SMS in real-time, a hacker can reset your password.
Overcome
SMS OTP is highly secure until your device is with you. Don't give your number to anyone who might be a threat to you as well as never share the login credentials.
Email OTP
Email platforms are highly safe if you use personal devices as well as internet protocol. The email platforms use 512-bit dynamic encryption. So direct break of passwords is not possible. But the functionality of the browser like autosave passwords, keep login, and cookies, make the email access a little bit easier.
Overcome
If you use your financial or business account, never ever save your password, use incognito windows for financial login, whenever you are doing the task on a different laptop or pc that doesn't belong to you.
Push Notification
Push notification is a 2FA process that needs a dedicated application installed on a mobile phone. The installed application runs in an online environment.
The application needs to be installed
Internet access to a mobile phone is necessary.
2FA Application login credentials need to be handled carefully.
Overcome
Install the 2FA application on your mobile phone.
keeps a mobile phone with enabled internet data.