*Post updated on October 2022.
Fraud is gaining territory in the mobile communication world. SMS Frauds like Smishing or SMS Pumping are more common than usual, even for tech-savvy consumers and businesses. In this article, we will explain why one time password is safe and the benefits of implementing it.
Now, more people are moving their lives online, and mobile banking and shopping are becoming part of our everyday lives.
However, when money’s involved, it can become prone to cybercrime.
No one likes to think that their systems and networks are vulnerable to attack. However, the truth is that vulnerabilities can arise quickly, such as the “Heartbleed Bug”, which was exposed in April 2014.
The Heartbleed Bug allowed unauthenticated attackers to discover and steal private keys, passwords, session details and private data. Thankfully, there are solutions to counter-act these attacks.
Two-factor authentication, also called two-step verification, presents employees or customers with two separate passwords – the user’s primary account password and a one-time password (OTP). This provides an additional layer of protection when accessing online systems.
Let’s take a closer look!
What Is a One Time Password?
OTPs are a form of two-step verification where the user validates their identity.
To do this, OTPs are sent via SMS. They are usually triggered when you need to prove who you are, such as logging in or transferring money from your online account.
The typical process usually includes:
- A user attempts to log in to their account.
- A unique, time-sensitive, temporary password is generated.
- The unique password is sent to the user via SMS.
- The SMS password is used as a 2nd form of identity authentication to log in.
Benefits of 2FA
As the Heartbleed bug demonstrated, any breach of consumer account security can result in high costs and reputation damage for the company.
OTPs can prevent that.
Most people own a mobile device, and SMS exists on every phone. The ubiquity of SMS means that OTPs are very convenient.
OTP security adds a safety layer, only enabling full access to an online bank account once a code has been entered.
It eliminates the need for physical hardware security tokens, which many customers lose or leave at home, hindering their ability to bank online when needed.
The most crucial benefit of unique passwords is enhanced security at an affordable cost, reducing the probability of an internet attacker gaining access to an account. These passwords are not reusable even if they are captured in transit.
OTPs make it much more difficult for attackers to gain access to sensitive information and accounts as they will also need access to the person’s mobile phone.
OTP SMS uses HTTPS or FTPS for enhanced data transport security for further peace of mind.
This ensures user accounts have additional protection and secures businesses from a major data leak.
Implementing One-Time Password
We have already talked about the 2FA best practices. Now we will explain to you how to implement two-factor authentication into your business.
Many solutions exist. However, it’s essential to select a compliant and credible provider and don’t sacrifice security.
Our two-factor authenticator solution issues and validates passwords and cryptographic checksums using a secure mobile-device channel. This further negates any packet sniffing over the network.
You can manage OTP from an easy-to-use cloud-based platform. You can also rest assured that we continually enhance our software to ensure you have the most secure solution for your business.