What is OTP in Bank & how to save yourself from OTP Bank Fraud in 2021

As it has been repeatedly stated, Cybersafety plays a major role. Passwords are a key part of that. There are some practices that can be used to ensure efficient and effective password use. For example, a combination of special characters and alphanumeric characters is a good option. Recent surveys and studies show that 40% of consumers have had security incidents, such as having their passwords stolen.

Imagine if your employees’ passwords fall into the wrong hands.

Your greatest concern should be unauthorized access to your sensitive information. Imagine a situation where you need more than a password. The password holder must be verified. OTP and 2-factor authentication are the best options. Account-holders can be authenticated and verified in real time before they can access an account.
So now?

What are OTP and 2FA?

What is OTP?

A one-time password (OTP), also known as a dynamic password, is a string or combination of numbers or characters that are generated by the computer. It can be used to log in or perform a transaction. The OTP is sent via SMS, email, and push notification to the account user. An OTP generated is valid for a limited time.

An OTP process adds an additional layer of authentication to your web service to guard against fraudulent login attempts. OTPs are more secure than regular static passwords. OTPs can be generated by users and may not be strong or linked to more than one account.

Strong passwords are good but a One Time Password (OTP) is even better. This is for both home and office workers. OTPs can only be used once and are unique passwords generated automatically. Because the OTP is sent via SMS to the linked phone number, the password is changed every time and is valid for a short time, which reduces the risk of unauthorized access to confidential digital information.

OTPs have many benefits

OTPs provide efficiency for quick verification needs:

1) They provide a crucial security layer that ensures the user is authorized for the next action.

2) Brands may use OTPs to deliver hyper-personalized offers.

3) OTPs can be sent via various digital channels, even though SMS is the most popular. They can choose the channel that their customers prefer. (E.g. (E.g. Voice and Push Notifications).

4) Reply attacks are not available for intrusion, unlike static passwords. OTPs cannot be used again, so it’s not possible to use the same password for a transition.

5) OTP prevents users from being invalidly entered in critical systems such as online banking, even if they use the same password on different systems. Let’s say an intruder takes the password that a user uses to access social media and online banking.

How do you implement OTPs?

OTPs are complex and require high levels of message transitions and precision in delivery. It is best for brands to use a trusted service provider to execute them. The recognition of the company (Has it served clients in financial services before? They should also examine the company’s performance (Delivery volume and timing accuracy). OTP is an instant delivery medium. Brands cannot afford to have customers unhappy because of the delay.

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