A One-Time Password (OTP) is a temporary and unique code used to authenticate users during online transactions, logins, or other secure processes. Unlike traditional passwords, which remain constant and can be reused, an OTP is valid for a single use or a short period, enhancing security by minimising the window of vulnerability to cyber threats.
Why is a One-Time Password safe?
The primary strength of OTP lies in its temporary nature. Traditional static passwords are susceptible to various attacks like phishing, brute force, and credential stuffing. However, OTPs, being time-sensitive and usable only once, significantly reduce the risk of unauthorised access even if intercepted since they expire quickly.
Types of OTPs
There are mainly three types of OTPs:
- Time-based One-Time Passwords (TOTP): TOTPs are generated using a shared secret and the current time, often involving a mobile authenticator app like Google Authenticator or Authy. The generated code changes every few seconds.
- SMS-based OTP: OTPs are sent via text messages to the user's registered mobile number. The code is typically valid for a short period and consists mostly of 4-6 digits.
- Email-based OTP: Similar to SMS, OTPs can be delivered via email. However, this method might be less secure due to email vulnerabilities.
How do one-time passcodes work?
One-time passcodes (OTPs) are a secure method of authentication used to verify a user's identity for a single transaction or login session. Here's a step-by-step explanation of how OTPs work:
- Generation: When a user initiates a transaction or login that requires additional security, an OTP is generated. This code is typically a random sequence of numbers or alphanumeric characters. The generation process uses algorithms that ensure the code is unique and difficult to predict.
- Delivery: The OTP is sent to the user through a predefined communication channel. Common delivery methods include SMS, email, or a dedicated authentication app. Some systems also use voice calls to deliver the OTP.
- User input: Upon receiving the OTP, the user is prompted to enter the code into the application or website where the transaction or login is taking place. This step ensures that the person attempting to access the account or complete the transaction is the legitimate user.
- Verification: The system verifies the entered OTP against the one that was generated and sent. This verification process typically involves checking the code's validity within a specific time frame, usually a few minutes, to prevent reuse or interception.
- Completion: If the OTP is correct and within the valid time frame, the transaction or login is approved, and the user can proceed. If the OTP is incorrect or expired, the user may be prompted to request a new OTP or try again.
- Security features: OTPs enhance security by being valid for only a short period and for a single use. This reduces the risk of unauthorised access, even if the code is intercepted. Additionally, OTPs are often used in conjunction with other authentication methods, such as passwords, to provide multi-factor authentication (MFA).
By understanding how one-time passcodes work, users can appreciate the added layer of security they provide, helping to protect sensitive information and transactions from unauthorised access.
How are One-Time Passwords created?
One-Time Passwords (OTPs) are generated through various methods. It begins with the user entering their registered mobile number/email ID. Time-based OTPs derive from a shared secret key and the current time, producing a unique code that changes at set intervals, often every few seconds. SMS-based OTPs are sent to users via text messages, containing a time-sensitive code for immediate use. Email-based OTPs function similarly, though they are delivered through email channels.
What are the benefits of an OTP?
- Enhanced security: OTPs offer a higher level of security compared to traditional passwords, reducing the risk of unauthorised access.
- Reduced vulnerability: Since OTPs expire quickly, even if intercepted, they become useless after a short period, minimising the window for exploitation.
- Additional layer of authentication: OTPs often complement existing security measures like passwords, adding an extra layer of verification.
- Versatility: OTPs can be sent via various channels like SMS, email, or generated by authenticator apps, catering to different user preferences and device accessibility.
How to use OTPs safely?
One-time passcodes (OTPs) are a powerful tool for enhancing security, but it is important to use them correctly to maximise their effectiveness. Here are some tips on how to use OTPs safely:
- Keep your device secure: Since OTPs are often sent to your mobile phone or email, ensure that your devices are secure. Use strong passwords, biometric locks, and keep your software up to date to protect against unauthorized access.
- Do not share OTPs: Never share your OTP with anyone, even if they claim to be from a trusted organization. Legitimate companies will never ask for your OTP over the phone, email, or text message.
- Use trusted networks: Avoid using public Wi-Fi networks when accessing sensitive accounts or entering OTPs. Public networks can be less secure and more susceptible to hacking attempts.
- Enable multi-factor authentication (MFA): Whenever possible, enable MFA on your accounts. This adds an extra layer of security by requiring not just your password but also an OTP or another form of verification.
- Be cautious of phishing attacks: Be wary of emails, messages, or calls that ask for your OTP or direct you to enter it on a suspicious website. Always verify the source before entering your OTP.
- Monitor your accounts: Regularly check your account activity for any unauthorised transactions or logins. If you notice anything suspicious, report it to the service provider immediately.
- Use official apps: When using OTPs for banking or other sensitive services, use the official apps provided by the service providers. These apps are designed with security in mind and are less likely to be compromised.
- Request new OTPs if needed: If you suspect that your OTP has been intercepted or if you receive an OTP that you did not request, contact the service provider immediately and request a new OTP.
- Limit OTP validity: Use OTPs that have a short validity period. This reduces the window of opportunity for attackers to use a stolen OTP.
- Educate yourself: Stay informed about the latest security practices and potential threats. Being aware of common scams and security tips can help you use OTPs more safely.
By following these guidelines, you can ensure that your use of OTPs remains secure and effective, protecting your accounts and personal information from unauthorised access.
Why use the Bajaj Finserv website or app to make payments?
Using the Bajaj Finserv website or app for payments offers unparalleled convenience and security. With a user-friendly interface, it allows swift transactions for a range of services like recharges and bill payments using the BBPS platform. The platform ensures encrypted transactions, safeguarding sensitive data and uses authentication methods like OTP and fingerprint scanner.
