OTP- One Time Password, that four to six-digit code that pops up on your screen every time you use your Debit or Credit Card for an online transaction or a NetBanking transaction. Have you ever wondered what exactly are these numbers and why do they play such an integral role to secure your bank account?
Through this article, we take you throughwhat is OTPand all that you need to know about it.
What is OTP Number?
OTPalso is known as a One Time Password is unsystematically generated and sent to your registered mobile number to validate the specific transaction. It offers an enhanced layer of security for the card and online transactions. It is sent to your mobile number within a couple of seconds of you inputting the details of your transaction and stays on your phone only for 2 minutes.OTPis automatically generated with a numeric or alphanumeric string of characters that authenticates the user for a single transaction done by Credit Card, Debit Card or login session. This OTP is a secret token that must not be shared with anyone.
An example of anOTPis when a system administrator, for instance, HDFC Bank sends you an OTP to complete your online purchase. This alphanumeric code which is used to authenticate access to the system changes every 30-60 seconds depends on how the back end system is generated. Most bank’s offer the period from 2 minutes to 10 minutes for theOTPto expire. However, for instance, Mobile device apps such as Google Authenticator bank on the token device and PIN to generate the OTP and offer two-step verification. It is unlike static passwords that expire only after every 30 to 60 days, theOTPis used per transaction or login session only.
OTPversus Static Password
- Static Password:
A static password is a password set up by the user and can be used multiple times. Although the authentication method is suitable, it is not secure as it is susceptible to online identity theft, phishing, keyboard logging, the man in the middle attacks, ATM and POS device skimming. All these theft practices are on the rise. A static password enables you with a single layer of security.
- OTP:
One Time Password, the added security layer over and above your static password is what today’s robust authentication systems address and topple the limitations of static passwords by incorporating and additional security credential. The OTP aids to protect network access and end-users digital identities.
Though each of these passwords offers their specific type of security, they work best together. The OTP adds an extra level of protection over and above the static password and makes it an added challenge for unauthorized individuals to access information over networks and through online accounts.
We have explained theOTP meaning, now let’s understand how to get a one-time password.
When a user logs in to his online banking platform or carries out an online purchase transaction, many banks, for instance, HDFC Bank will send you an OTP through the mode of an SMS on your registered mobile number or your registered email address.
They provide you with a temporary that is anOTPpasscode for a second authentication factor. In the case when an unauthenticated user attempts to access a system or perform a transaction on a device the bank network server generates a number or a one-time password algorithm to match and validate the one-time password and user. Hence, if the unauthorized user does not have your cell phone, it is challenging to complete the transaction without the one-time password algorithm.
AnOTPis the second step for two-factor authentication for any online transaction after you have entered your login and password credentials.This must not be shared with any party, even bank officials.
Benefits ofOTP
- TheOTPoutweighs all the security hiccups the administrator or the security managers at the back end team of the bank have to face.
- With the OTP auto-generated algorithm, bad or weak passwords, sharing of credentials, password composition rules or reuse of the same password on multiple accounts and systems are all redundant.
- TheOTPis valid only for a few minutes; thus, the breach of security is extremely minimal.
- As it’s a One Time Password-OTPprevents attackers from obtaining the secret codes and reusing them.
How theOTPworks?
Through the OTP based authentication mode, the user’sOTPand the authentication server rely on shared secrets. The numeric or alphanumeric values for theOTPare generated using the Hashed Message Authentication Code-HMAC algorithm such as time-based information or an event counter. EachOTPwill have a timestamp for additional security. TheOTPonce generated is delivered to a user through numerous channels such as text message via SMS, registered email address or other dedicated applications chosen by the bank.
This article has explained in detail what is meant by OTP, how it is generated and the difference between a static password and an OTP. So, the next time you carry out any transaction online, you will know precisely what those six digits mean on your SMS that reads as OTP. To learn more about HDFC Bank Debit and Credit Cards, click here.
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*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circ*mstances.
FAQs
The OTP feature prevents some forms of identity theft by making sure that a captured username/password pair cannot be used a second time. Typically the user's login name stays the same, and the one-time password changes with each login.
What is OTP and how does it work? ›
A one-time password (OTP) is an automatically generated numeric or alphanumeric string of characters that authenticates a user for a single transaction or login session. An OTP is more secure than a static password, especially a user-created password, which can be weak and reused across multiple accounts.
What are the benefits of OTP? ›
Decreased risk.
If a user's credentials get leaked in a data breach, there's less risk since criminals can't use them without the OTP. OTPs also reduce the security risk for users who reuse passwords, a common - though inadvisable - practice.
What is my OTP code on my phone? ›
One Time Password as SMS Message
Once the user has begun his login attempt, filling in his username and the correct password, an SMS OTP is sent to the mobile number connected to his account. The user then enters this code shown on this phone in the login screen, completing the authentication process.
What are the disadvantages of OTP? ›
Disadvantages of One-Time Passwords
A user may also be unable to access the OTP. Some emailed OTPs may be delayed or end up in a Spam folder. If a user loses a physical token, they've lost access to their OTP.
What can someone do with OTP? ›
In an OTP fraud, scammers fool people into sharing their One Time Passwords, which are sent to them for authentication of online transactions or logins. Fraudsters pose as bank officials, customer service agents, and make up stories, like updating bank details to trick victims into revealing their OTPs.
What is OTP benefit? ›
One of the foremost benefits of OTP implementation is its enhanced security. Businesses can thwart many common security threats by requiring users to enter a unique OTP for each authentication attempt. Even if an attacker obtains a user's password or login credentials, they still need the current OTP to gain access.
How safe is OTP? ›
OTP is the most common MFA method because it can be widely adopted — everyone has a phone, and ensures a certain degree of safety when it comes to identity verification. However, as online fraud attacks evolve both tactic and volume wise, OTP is no longer your trusted friend.
Does OTP need Internet? ›
No, OTPs can be delivered via SMS or other means that do not require an internet connection.
Why do I need an OTP? ›
Why is a one-time password safe? The OTP feature prevents some forms of identity theft by making sure that a captured username/password pair cannot be used a second time. Typically the user's login name stays the same, and the one-time password changes with each login.
Depending on the service, the code may be sent via SMS, email, or even an in-app notification. Once the user has received the OTP code, they can then enter it into the website to gain access to their account. As soon as the code is entered, the code will no longer be valid.
What is an example of an OTP number? ›
An example of an OTP is when a system administrator, for instance, HDFC Bank sends you an OTP to complete your online purchase. This alphanumeric code which is used to authenticate access to the system changes every 30-60 seconds depends on how the back end system is generated.
What is my OTP 4 digit number? ›
OTP is a four or six digit number that you must enter (on your mobile or computer) to authenticate an online financial transaction. Today you cannot complete most financial transaction without OTPs. Also, banks sends OTPs in real time to provide an extra layer of security to your time-sensitive transactions.
What is the secret key in OTP? ›
The secret key/seed is a static value that's created when you establish a new account on the authentication server. While the secret key/seed doesn't change, the moving factor changes each time a new OTP is requested.
What are the two types of OTP? ›
There are two types of OTP: HOTP and TOTP.
How long does OTP last? ›
The validity period of an OTP (One-Time Password) can vary depending on the service or application implementing it. Generally, OTPs are designed to be short-lived for security reasons. The time limit differs for different utilities. The validity can be from 30 seconds to 3 hours or more.
Can someone access my OTP? ›
As OTPs are personal to your email ID or mobile number registered with the service provider, cyber attackers cannot access them without scamming you. They either steal your OTP without your knowledge or scam you into revealing the OTP by using fraudulent tactics.
What is an OTP in text messages? ›
OTP means One Time Password: it's a temporary, secure PIN-code sent to you via SMS or e-mail that is valid only for one session. Smart-ID uses OTPs during registration and account renewal to confirm your contact information.
Who sends an OTP? ›
In some countries' online banking, the bank sends to the user a numbered list of OTPs that is printed on paper. Other banks send plastic cards with actual OTPs obscured by a layer that the user has to scratch off to reveal a numbered OTP.
Is it safe to use OTP? ›
OTP is the most common MFA method because it can be widely adopted — everyone has a phone, and ensures a certain degree of safety when it comes to identity verification. However, as online fraud attacks evolve both tactic and volume wise, OTP is no longer your trusted friend.
