All you need to know about OTP and Two-Factor authentication

As we all know by now,and thankfully passwords can help with that. It seems though that passwords alone can’t protect the users completely in case of a cyberattack.For example, most consumers have experienced at least one security incident – like having their passwords.

Imagine if the wrong person ends up with a company’s employee’s passwords. Illegal access to critical information can cause big problems that will take a lot of money and time to fix. There is where OTP and two-factor authentication enter.
Now the user needs more than a password to access data, that is, the owner of the password requires to be verified. With these two security tools, account owners are timely checked and verified before they are authorized to access an account.

So, let’s find out more about OTP and two-factor authentication and how those two buddies work (for us).

What is OTP?

OTP is an acronym that stands for a one-time password. It is a sequence of random numbers or characters used for only one transaction or login attempt and that is valid only for a short period. The OTP is sent to the account holder via an SMS, email, or push notification. OTP is an extra layer of authentication to your online services that can protect your business and your clients from fraud. Also, an OTP is more secure than a typical password that is created by a user which can be ineffective or allied with more than one account.

How does OTP work?

When a user tries to enter their account or tries to start a transaction, the system automatically checks the data and prompts for a One-Time Password. The OTP is created by the authentication server and sent to the user via an SMS, email, or push notification.

Benefits of OTP

• It is safe from replay attacks:

Even if an attacker gets access to your OTP, they can not use it again if you already have used it, because the password becomes invalid after use. That’s the main benefit OTP has compared with a static password.

• It is easy to use:

OTP originally uses SMS; and since most clients have access to SMS through their smartphones, OTP is a very handy mechanism to execute.

What is 2 Factor Authentication?

A two-factor authentication (2FA) adds an extra layer of authentication that validates whoever is trying to log in; for example, an OTP is a form of two-factor authentication. So, it makes it impossible for anyone who tries to get access to a user’s account with stolen details to succeed, because of this extra layer of authentication.

How does 2 Factor Authentication work?

2FA works a lot like your typical login process. The only thing that changes is that you need to use a piece of extra information, like an OTP, besides your username and password. The 3 basic elements of a 2FA are something you know (i.e., a password or PIN), something you have (i.e., a mobile device), and something you are (i.e., like a fingerprint, or voice). Two-factor authentication relies on the policy that a second authentication factor will compensate for the weakness of the other element and the other way around. Here you will find some more details that will help you understand how two-factor authentication works and benefits your business and your customers. It’s a really simple 5 step process.

Benefits of 2 Factor Authentication

• Superior security:

As we already said, 2FA adds an extra layer of security to your system. This means that no one but you can log in to your account, because even if they have stolen your login details, they won’t have access to your phone or email address too. That way they won’t manage to proceed with the login and you wιill be informed that someone else than you is trying to access your account.

• Lower cost for security issues:

As cyber threats increase, companies spend more and more on security systems. With 2FA you have an easy, effective, and value for money way to manage the most common security risks.

Final Thoughts

Smart authentication mechanisms like OTP and 2FA are needed more than ever to secure online activities for companies and clients. Routee’s 2FA provides a layered security approach to form a groundbreaking secure user identity. This security approach acts as a base to protect digital channels and improve customer’s trust, protect sensitive transactional data, secure all applications, devices, and endpoints across employees and customers.

Besides, with Routee’s 2FA a company can build a frictionless user experience with available access to data anywhere and anytime, deploy the right mix of authenticators, detect threats and fraud in real-time, and implement customized solutions to fit every business needs. Activate your own Two Factor Authentication solution in less than 10 minutes and take your business’s security to the next level!