Cross Channel One Time Password OTP
What is Cross Channel One Time Password?
Cross channel One-time password – or OTP – is an automated solution that allows users to log in to a session or transaction through the verification of a random code. The code is sent through a channel different from the one through which the request was made. In order to validate the client’s identity, the client must be able to access the email account or be in possession of the registered mobile phone to which the SMS code was delivered. The code has a short lifespan and can only be used once, providing added security.
- Add an additional layer of authentication to a web-based service to protect it against fraudulent login attempts.
- Avoid the security deficiencies associated with static password-based authentication.
- Verify customer access to an additional digital channel, as a multi-factor authentication.
- Give the possibility to define the security criteria of the password, such as the lifespan and the number of characters in an easy and efficient way.
Generation and automated sending of a single-use security code, with specific characteristics, to allow a user or client the access to a service, a session or a transaction, adding a security layer by validating the password through a channel other than the one which request was made.
- Corporate image, colors, logo and images of the communications are 100% configurable.
- Password characteristics like characters quantity, lifespan and if it is numeric or alphanumeric.
- Combination of multichannel digital channels according to the needs: web portal, email, SMS, mobile application, WhatsApp, automated call or any other digital channel that the organization has available.
Frequently Asked Questions about OTPs
OTPs, or One-Time Passwords, are a form of authentication that provides an additional level of security. Here are some frequently asked questions about OTPs:
- What is an OTP (One-Time Password)? An OTP is a password that is used once and then discarded. They are used to provide an additional level of authentication and security.
- How does an OTP work? An OTP is generated and sent to the user via a secure method, such as a text message, email, or authentication app. The user then enters the OTP into the system to authenticate.
- Why are OTPs used? OTPs are used to provide an additional layer of security. They ensure that even if someone gets a user’s password, they won’t be able to access their account unless they also have access to the OTP.
- Are OTPs secure? Yes, OTPs are secure as long as they are used correctly. The fact that they are one-time use means that even if an attacker intercepts the OTP, they won’t be able to use it to access the account in the future.
- Can someone use the same OTP more than once? No, OTPs are designed to be used only once. Once an OTP has been used, it is discarded and a new one is generated for the next login.
- How does DANAconnect use OTPs? DANAconnect can use OTPs to securely authenticate users during sensitive communications and transactions. This can be especially useful in the financial sector, where security is paramount.
How OTPs Help Financial Institutions
One-Time Passwords (OTP) provide an additional layer of security in online transactions and are particularly useful for financial institutions for the following reasons:
- Enhanced Authentication: OTPs provide a second factor of authentication beyond standard passwords. This means that even if a customer’s login credentials are compromised, attackers won’t be able to access the account without the OTP.
- Fraud Prevention: OTPs can help prevent various forms of online financial fraud, such as phishing and identity theft. By requiring an OTP for transactions, financial institutions can ensure that the person conducting the transaction is indeed the account holder.
- Customer Trust: The use of OTPs can increase customer trust in the security of online transactions, which in turn can increase the usage of the financial institution’s online and mobile services.
- Regulatory Compliance: In many cases, financial regulators require financial institutions to use some form of two-factor authentication, like OTPs, for online transactions.
- Cost Reduction: By preventing fraud and increasing security, OTPs can help reduce the costs associated with security breaches and financial fraud.
- Flexible Usage: OTPs can be sent to customers through various means such as text messages, automated phone calls (like those offered by DANAconnect), emails, or authentication apps, allowing financial institutions to adapt to the preferences and needs of different customers.