One-time password (OTP)Systems provide a way to log on to a network or use a service.A unique password that can only ever be used onceAs the name implies,
The static password is the most popular authentication method, but it’s also the least secure. It’s time to change if “qwerty”, your password, is used all the time.
OTP prevents identity theft in certain cases by making sure that the user name and password pair are not used again.
Typically, the login name of the user remains the same and the password is changed with each login.
One-time passwords, also known as One-time Passcodes, are a type ofstrong authenticationThis provides greater protectioneBankingsensitive data, such as corporate networks and other systems.
Authentication answers the following question:Are you Mr. or Mrs. “X”
Most enterprise networks, ecommerce sites and online communities only require a username and a static password to log in and access personal and sensitive information.
This authentication method is convenient but not secure. Online identity theft is on the rise worldwide, using keyboard logging, phishing and man-in-the middle attacks.
Strong authentication systems overcome the limitations of static passwords. They include an additional security credential such as a temporary password (OTP) to protect end-users’ digital identities and network access.
This provides an additional level of protection, and makes it harder to access unauthorised information, networks, or accounts online.
Time-based One-Time Password (TOTP) changes after a set period, such as 60 seconds, for example.In India, the mAadhaar app on your mobile phone allows you to generate a dynamic OTP instead of waiting for a one-time password to arrive. The app’s algorithm generates either a dynamic OTP (or TOTP) using the 8-digit code. The 8-digit code is valid for 30 seconds.
It sounds easy, and it is.
Here is an example of OTP in online payment.https://www.youtube.com/embed/5e2AHVcL57Y?rel=0&enablejsapi=1&origin=https%3A%2F%2Fwww.thalesgroup.com
There are many ways to generate one-time passwords. Each method has its own advantages and disadvantages.
One-time passwords can be provided by simple methods like grid cards and transaction number lists.
These methods are low-cost, but they can be slow, hard to maintain, shareable, easy to duplicate, and require users to keep track where they are in their password list.
A more convenient way for users is to use an OTP token, a hardware device capable of generating one-time passwords.
There are many more.
These devices may be PIN-protected for added security.
An authentication server validates the logon request by combining the user’s one-time password and other identity credentials (typically username and password).
This is a good solution for enterprise applications but it can be costly for consumer applications.
The token must use the same method as the server. Therefore, each server logon requires a separate token. Users will need a unique token for each network or Web site they visit.
Advanced hardware tokens can use microprocessor-based smartcards to calculate one-time passwords.
Smart cards have several advantages for strong authentication, including data storage capacity, processing power, portability, and ease of use.
They are more secure than other OTP tokens in that they create a unique, non-reusable password each authentication event and store personal data.
Display payment cards can even integrate an OTP generator for 2-factor authentication.
Additional strong authentication capabilities can be added to smart cards, such asPKICertificates of Public Key Infrastructure.
The smart card device is able to provide core PKI services such as encryption and digital signature.
Thales smart cards provide OTP strong authentication in Java(tm), and Microsoft.NET environments.
End-users can choose from multiple connectivity options and form factors to ensure they have the right device for their network access needs.
All Thales OTP devices are compatible with the same Strong Authentication Server, and all have the same set of administrative tools.
Single-factor authentication, the traditional security method, requires a username and password to grant access.
One password compromise was all that was needed to shut down the largest US oil pipeline.Colonial Pipeline was shut down by Darkside, a ransomware group. This attack, which created shortages, pushed up gas prices and led to a wave of panic-buying, put a spotlight on weak password protection and ransomware’s potential to disable critical infrastructure.Bloomberg (4 June 2021() reported that the company’s system had been breached by a single leak password to an older VPN account, which was used to remotely access its servers. The account was not usedmultifactor authentication. Colonial’s network was hacked using a compromised username and password. Bloomberg reports that the hacker may have used the same password to access multiple accounts, but investigators would not be able to determine how.
Stronger authentication can also be implemented with two-factor authentication (2FA) or multiple-factor authentication. These cases require that the user provide two or more authentication factors.
Below is another example of 2 factor-authentication in banking.https://www.youtube.com/embed/ZRssEFzeCu8?rel=0&enablejsapi=1&origin=https%3A%2F%2Fwww.thalesgroup.com
OTP SMSThis is a common second factor authentication method for banks.
You will need to bring your card (something that you have) and a pin code (something that you know).
In Singapore, Singpass uses Two-Factor Authentication (2FA) and end-to-end encryption of passwords to access the country’s eGovernment services securely. Note that the European PSD2 regulation is requesting stronger customer authentication to banks and financial institutions. OTP SMS is therefore no longer PSD2-compliant.
OTP is part of a larger globalization strategy.two-factor authentication marketIt was valued at $3,5B in 2018, according to Market Research. According to Market Research, it will reach $8.9B in 2024.Study.
OTP market was valued at $1,5B in 2018, and will grow to $3,2B by 2024.
Two-factor authentication is a major market. The main players are Thales, Fujitsu and Suprema.
Only a small portion of the OTP market is made up by hardware OTP token authentication businesses. Research and Markets estimates that it is worth $261 million worldwide in 2019 and will grow to $403 million by 2025.
Customers of primary importance include enterprises, banks, finance, insurance, securities, government, healthcare and gaming.
One-time password (OTP), which is an alphanumeric or numeric string of characters automatically generated by the system, authenticates the user for one transaction or login session.
OTPs are more secure than static passwords, especially user-created passwords that can be weak or reused across multiple accounts. OTPs can be used to replace or add security to authentication login information.
OTP security tokens are microprocessor-based smart cards or pocket-size key fobs that produce a numeric or alphanumeric code to authenticate access to the system or transaction. Depending on how the token was configured, this secret code can change every 30-60 seconds. Google Authenticator and other mobile device apps rely on the token device to generate the one time password for two-step verification. OTP security tokens are available in hardware, software, and on-demand. The one-time password, unlike traditional passwords which are static and expire after 30-60 days, is only used once for a transaction or login session.
An authentication manager on the network server generates an anonymous number or shared secret using one-time password algorithms when an unauthenticated user attempts access to a system or performs transactions on a device. To match the one-time password and to validate the user, the security token on the device or smart card uses the same number and algorithm.
Many companies use Short Message Service (SMS) to provide a temporary passcode via text for a second authentication factor. After the user has entered his username and password in transaction-oriented web applications and networked information systems, the temporary passcode can be obtained via cellphone communications.
For two-factor authentication (2FA), the user enters his user ID, traditional password and temporary passcode to access the account or system.
OTP-based authentication relies on shared secrets between the OTP app and authentication server. Values for one-time passwords are generated using the Hashed Message Authentication Code (HMAC) algorithm and a moving factor, such as time-based information (TOTP) or an event counter (HOTP). For greater security, OTP values are time stamped at minute or second intervals. One-time passwords can be sent to users via SMS, email, or other channels.
Security professionals have long been concerned that SMS message spoofing and man-in-the-middle (MITM) attacks can be used to break 2FA systems that rely on one-time passwords. The U.S. National Institute of Standards and Technology announced plans to ban SMS as a 2FA and one time password method. This is because it is susceptible to a variety of attacks that could compromise the codes and passwords. Enterprises that are considering deploying one-time passwords need to look into other delivery options.
One-time passwords avoid common security pitfalls IT administrators and security managers encounter when trying to protect passwords. They don’t have to worry about composition rules and known-bad or weak passwords, sharing credentials, or reusing the same password on multiple accounts. One-time passwords also have the advantage of being instantly invalidated, so attackers can’t get their secret codes and reuse them.