One Time Password (OTP) for authorization: does it guarantee complete data protection?

The traditional protection of personal data using static passwords has not justified itself. Poor information hygiene of users who use weak passwords, plus the activation of cyber fraudsters, has led to the fact that today password protection has an extremely low level of stability. A worthy solution in this situation could be the introduction of OTP one-time passwords. 

OTP password - what is it in simple words?

The OTP password is an automatically generated, one-time PIN code consisting of symbols and numbers, with which the user is granted access for secure login to the system. 

The OTP passwords are used for:

• access to bank or credit accounts;
• making changes to online travel bookings;
• authorization when logging into the system from a new device, etc.

A one-time password (OTP), or dynamic password, can only be used for one authentication session or one transaction. Its action is limited to a set period of time - several minutes or seconds.

How does OTP authorization work?

The principle of using an OTP password is quite simple. The process consists of four steps: 

1. Data processing. The user logs in to the application or website for the first time. 
2. Sending an OTP password. The algorithm sends the client a one-time code to the mobile device. 
3. Code verification. The user enters the received code, confirming his identity. 
4. Completion of login. The verifier verifies the OTP password, identifies the client, and allows them into the account. 

In most modern applications, OTP authorization occurs in real-time, i.e. the code is generated and sent to the user’s phone at the same time.

Five benefits of OTP for business

OTP password is a reliable protection against intruders who want to use data stolen from you for personal purposes. A one-time PIN code solves the problem of possible interception of information: even if a scammer got your code, he cannot use it again.

Other advantages of OTP authorization: 

1. An additional protective layer.
2. Resilience to repetitive cyberattacks. 
3. Reducing the risk of password compromise.
4. Reducing the need for IT support.

Combining a strong permanent password, biometric recognition, and OTP password is a good way to protect your personal information from intruders.

Decision Telecom offers a wide range of authentication solutions, including OTP authorization. Our API system allows you to send codes through multiple communication channels. 

Do you want to try it? Sign up on the website and test our products!