What is OTP (One Time Password)?
A one-time password (OTP), also known as a one-time PIN, one-time authorization code (OTAC), or dynamic password, is a password that is valid for only one login session or transaction, on a computer system or other digital device.
The OTP is unpredictable because it is generated dynamically. As it is valid for use only once, it can be used with a much greater degree of security.
Where is OTP most used?
A few years ago, OTP was always used in banks through electricity hardware tokens to protect people’s property. Compare that to today, where people are now able to shift large swathes of money online through smart devices that are accessible from virtually anywhere in the world. While online and mobile banking has no doubt made banking more convenient, the inconvenient truth is that they’ve also made banking less secure.
As technology develops and mobile phones become more versatile and an electricity hardware token is easily lost, it is now more common to receive SMS, and Voice OTP now.
What’s more, the property of Internet residents is not just real-world money, property, etc. Online social platform accounts, internet data, game accounts, and virtual services are all modern people’s property.
Nowadays OTP is widely used in the financial, telecommunications, online gaming sectors, and so on, effectively protecting users.
Why do we need OTP?
Do you memorize your every account’s password firmly?
The passwords quite protect us well at that time. But now that most of our activities including business and leisure are on the Internet, just relying on passwords is no longer able to protect us. With the big data and algorithm era come, more data and assets are stored online than ever before and the passwords become very vulnerable to constant attacks.
As mentioned early, people have already lived on the internet, which means there are so many passwords (different apps, platforms, and so on) to memorize or record. Put it simply, do we memorize every password firmly? This leads to password fatigue—a phenomenon where users store their passwords in careless ways that make it easy for people with malicious intent to fish for them. Poor password storage practices include recycling of passwords across various platforms, or recording them on sticky notes or unsecured files on personal devices. That’s the most important reason why we need OTP.
How does OTP Work?
Need to access ? Waiting for a phone call, SMS message or email with OTP
OTPs are used when a transaction needs extra security or an alternative method of proving a customer’s identity. When a recognized situation arises, a request for an OTP is made, either by the customer him/herself or the institution, they’re dealing with. The OTP has generated automatically as a semi-random number or string of characters. There is no way to predict what the OTP will be ahead of time; also, OTPs are usually time-limited, usable only for a few minutes.
There are several ways to send an OTP. Some give the option of receiving OTPs by email, although this may tend to be less secure. Other providers enable OTPs as a voice call. The most common way to send OTPs is by mobile messaging, typically an SMS text to the customer’s cellphone.
In everyday life, we use SMS OTP or voice OTP when we need to log in to social media platforms, which are basically time-limited OTPs that further ensure the security of the account and that you are the only one who sees and uses the OTP.
In addition, with globalization and increasing global trade, it is important to receive OTPs quickly, efficiently, and securely when cross-border transactions are required. Buka, which has been working in the communications sector for over 16 years, is able to provide a global service in SMS or Voice OTP.