One-Time Password (OTP)

What is One-Time Password (OTP)?

OTP stands for One-Time Password. It is a security feature used to authenticate users during transactions or logins. Unlike traditional passwords, which can be reused, OTPs are valid for only a short period or a single transaction.

Key Features of OTP

  • Temporary: OTPs expire after a short duration or after they are used, enhancing security.

  • Unique: Each OTP is generated uniquely for each session or transaction, making it difficult to reuse.

  • Time-Sensitive: OTPs often have a limited time frame in which they can be used, further reducing the risk of unauthorized access.

  • Two-Factor Authentication: OTPs are commonly used as a part of two-factor authentication (2FA), requiring something you know (password), and something you have (OTP).

Common Methods of Receiving OTPs

  • SMS: A one-time password is sent to the user's registered mobile number via text message.

  • Authenticator Apps: Applications like Google Authenticator generate OTPs that can be used for logins.

  • Voice Calls: Some services may offer the option to receive OTPs via automated voice calls.

Benefits of Using OTP

  • Enhanced Security: Reduces the risk of hacking since the password is not static.

  • User Verification: Confirms the identity of the user, especially during sensitive operations.

  • Reduces Risk of Phishing: Even if a password is compromised, the OTP is still needed for access.