What Are OTP Messages?

A one-time password (OTP) or a one-time PIN is a code that is used to authenticate a single session or transaction on a digital device. OTP messages strengthen security by protecting users against cyber attacks, such as phishing and data breaches.

As more and more people are online and transactions have become digital, security risks have become more prevalent. Instead of relying on static passwords, you can use OTPs for Two-Factor Authentication to minimize fraudulent login attempts and transactions.

With reports of websites losing sensitive data on the rise, traditional security systems may no longer be enough. As cyber threat actors become more complex, businesses need to take serious measures to protect their data. Stolen credentials can mean losing customer trust and reputation for businesses. 2FA and OTP are solutions that are easy to implement and highly secure. 

What is Two Factor Authentication (2FA)?

Two-factor authentication (2FA), also known as dual-factor authentication, is a system that require users to provide two distinct ways to authenticate themselves. 2FA offers an extra layer of security against malicious cyber attacks. 2FA benefits businesses by ensuring enhanced protection and building customer trust. With 2FA, users provide an additional factor such as a fingerprint along with their passwords.

Using OTP Messages for 2FA

Businesses worldwide use OTP authentication as a standard process for verifying user logins and transactions. OTPs are usually a randomly generated string of characters sent to the user via SMS text message, voice call, or emails. The user then enters the received code into the business system, website or app to gain access. Even if a cyber threat actor was able to hack the user’s password, data breach can be avoided due to the additional security factor. 

SMS OTP is widely used because text message OTP is simple to implement and convenient for users. Voice OTP is an excellent option to support users with limited vision and can also be used as a fallback. 

TOTP vs HOTP 

TOTP refers to Time-based One-Time Passwords. It involves using unique numeric codes randomly generated with a algorithm using the current system time as an input.  

HOTP refers to HMAC-based One-Time Password. Hash-based Message Authentication Code (HMAC) uses counter as a moving factor. The counter is incremented every time the OTP is requested and validated.