A relative of two-factor authentication, an SMS one-time password (OTP) is an authorisation method where an automatically generated string of numeric or alpha-numeric characters are used to authenticate a user for a single login session or transaction. They may replace existing information, or be used in addition, to add another level of security to the login procedure, drastically improving the security of a website, application or software.
Commonly used by banks and online retailers, one-time passwords help ensure the security of your customers’ data and information.
An OTP is more secure than a static password, especially passwords created by a user; which can be weak and/or reused across multiple websites or accounts.
Benefits of SMS OTP
SMS is known for its high reliability and readability; with a 98% open rate within 30 seconds and no additional functionality or software required, it works on all devices, globally, with no internet access necessary. SMS OTP is much more secure than email OTP. Generally, any hacker attempting to retrieve customer information will already have login details, so may be able to intercept the email before the customer is aware of what is happening.
OTPs become invalid in minutes, which further prevents hackers’ attempts to steal data.