One-time passwords (OTP) have undergone mainstream adoption in securing transactions and accounts. To prevent sensitive data from falling into the wrong hands, telecommunications operators, healthcare centers, and financial institutions utilize this security method to ensure the welfare of their stakeholders.
The primary goal of using an OTP is to provide another layer of protection for both consumers and institutions. When implemented correctly, it can give fraudsters a harder time bypassing security systems and databases. If you’re planning to increase your organization’s security with OTPs, there are some important considerations to keep in mind.
OTPs in a Nutshell
An OTP is a verification process organizations use to protect their employees and clients. The OTP is sent via SMS or email, and the person will input this for verification. Some of the benefits of using an OTP include being easy to adopt, customizable, and providing for easy yet strong encryption.
A Step-by-Step OTP Guide
An OTP is an automatically generated numeric or alphanumeric code that people use to authenticate actions. It is a common and convenient authentication solution for businesses to use to provide a safe system for their clients.
Below is a short step-by-step flow of how OTPs are created and utilized.
1. The user logs in using their username or mobile number and password.
2. The system verifies the password.
3. The system sends the user a request for the OTP either through SMS or email.
4. The user types in the OTP within the preset time frame.
5. The system verifies if the OTP matches.
6. When matched, the system authenticates the user and gives them access.
Drawbacks and Considerations
With any security method, there will always be drawbacks to consider. While OTPs are gaining traction among industries, taking time to understand its pitfalls will help you determine if this mode of authentication will suit your company needs.
1. Lack of two-way authentication
There is a lack of mutual authentication and a weak encryption algorithm. This makes cyberattacks more prominent since hackers can potentially intercept data.
2. SMS-based OTPs are susceptible to interception
OTPs sent through SMS are highly susceptible to interception. To ensure your organization’s safety, making use of email or app-based OTPs can be a much better option.
3. Can be inconvenient for the user interface (UI)
OTPs can cause a change in UI, making it inconvenient for some users. Without proper implementation, adding another step in the verification can confuse and negatively impact the client’s experience.
A Convenient and Straightforward Authentication Process
Due to the ease-of-use that it brings, it’s no surprise that OTPs have continuously gained traction across different industries. While it may be convenient and easy to implement, it’s important to note that its effectiveness as a whole is still questionable. Considering the limitations listed above, its drawbacks go to show that OTPs have a lot of vulnerabilities.
While proper implementation can deter fraud, relying on them alone won’t be enough to ensure endpoint security. With the prior overview of OTPs, it should be easier for you to pinpoint which security solutions can best optimize your security infrastructure. If you are on the lookout for reliable authentication solutions, know that Q5id will provide everything you need.
Get in touch with us today to learn more.
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