What is a one-time password?
A one-time password or OTP represents a valid password for one login session or transaction on the online platform or any digital device. Usually, OTP is a one-time PIN that consists of string of numbers that will authenticate a user for a transaction or a single login attempt.
An algorithm generates a unique value for each one-time password by factoring in contextual information, like time-based data or preOTPs avoid several shortcomings that are associated with traditional (static) password-based authentication; execution also incorporates two-factor authentication by ensuring that the one-time password requires access to something a person has (such as a small keyring fob device with the OTP calculator built into it, or a smartcard or specific cellphone) as well as something a person knows (such as a PIN). An OTP is much more secure than a static password, especially when a user-created password can be weak and reused across multiple accounts. OTPs may replace authentication login information or may be used in addition to it to add another layer of security. Many organizations recommend OTP over SMS to increase the security and safety of their customer accounts. The introduction of security devices under OTP technology also creates favorable conditions for users in electronic transactions.
Today, most parts of the world, like e-commerce sites, enterprise networks, and online communities, use a one-time password system. It requires only a user name and static password for login and can access the personal details sensitive data. This feature prevents identity theft by ensuring that a captured user name/password pair cannot be used a second time if anyone tries to use it. Typically the user’s login name and details stay the same, and the one-time password changes with each login. It means whenever you log in, then-new OTP is generated. One-time passwords are a form of robust verification, providing much better protection to banking, corporate networks, and other systems containing sensitive data and pieces of information.
Let us see how hackers get OTP (One Time Password, Token, Tan) and steal your money in this video:
Amazon one time password
Please see how to Setup Mobile Authenticator OTP One Time Password for Amazon in the video below:
Advantage of one-time-password?
- -FORGOTTEN PASSWORDS CAN BE CHANGED: When you have any of the social media accounts like Instagram, WhatsApp, Telegram, etc. then you often forgot the passwords of your accounts; there is usually a feature found on those accounts of’ forgetting passwords that can be used by those users to change their account password for future use. And when you log in to an application using any different mobile device, the system will automatically process verification through the OTP Code to validate that the login made through a different mobile device is the original account owner or any fraud.
- SECURE FOR INTERNET BANKING: Without the Bank’s OTP code, our internet banking transactions cannot be processed. When you conduct transactions such as money transfers through
Internet Banking, then verification codes, will usually be sent to your mobile number for the owner’s confirmation. That code is a secret code that is only valid for one-time use and with a specific time limit.
How to withdraw money without OTP?
To withdrawal money, without OTP you can use ATM machines where only a pin is enough. However, some ATM machines such as SBI ATMs send you OTP on SMS messages.