Example of OTP Codes, Applications, and How to Secure Them

OTP stands for One-Time Password, a single-use authentication system that is only valid for a limited time. The function of OTP is to verify a user’s identity when accessing or making transactions on an online platform.

OTP codes serve as a second layer of security that protects accounts from unauthorized access. Even if someone knows your account password, they cannot access your account without the OTP code.

There are various examples of OTP codes depending on the platform used. This article will explain examples of OTP codes, their applications, how to secure them, and alternatives to OTP codes.

Examples of OTP Codes

As a one-time password with a limited validity period, OTP codes are typically a series of random numbers generated by a security system. Examples of OTP codes include:

789012
98123
5249

These codes are sent to users when they attempt to access an account or conduct a transaction that requires additional verification.

The examples above are random numbers to prevent prediction or guessing by unauthorized parties. OTP codes are randomized to prevent brute force attacks, where hackers try all possible combinations.

The expiration time of an OTP code is designed to reduce the risk of misuse. A time limit of 30-60 seconds gives hackers very little opportunity to use an OTP code.

Additionally, if an OTP code is intercepted by a third party, the time limit ensures that the code becomes invalid once it expires.

OTP codes may consist of numbers only, letters only, or a combination of both. The format depends on the desired level of security. The length of the OTP code also affects its security level.

• Short Codes (4-6 digits): Quick and easy for users to enter but less secure for high-risk systems due to fewer combinations.
• Long Codes (8-12 digits): More secure as they offer more possible combinations. Suitable for transactions involving sensitive or high-value data.

OTP codes are not just random numbers or letters but are designed with strict security principles to protect users from various digital threats.

Applications of OTP Codes

OTP codes are widely used across different sectors to enhance security. Some common applications include:

1. Digital Banking

   • Financial Transactions: When making fund transfers or payments through banking apps, especially for large amounts, users are required to enter an OTP code sent to their registered phone number.
   • Updating Personal Information: When changing personal data such as email addresses or phone numbers, banks send OTP codes to ensure the change is made by the rightful account owner.

2. E-commerce

   • Login: E-commerce platforms send OTP codes to verify that the rightful account owner is logging in.
   • Password Reset: If a user forgets their password and wants to reset it, an OTP code is sent to their registered email or phone number as a verification step.

3. Social Media

   • Login from a New Device: When an account is accessed from an unfamiliar device or location, the platform sends an OTP code to verify the legitimacy of the access.
   • Activating Additional Security Features: Some platforms offer extra security features that require verification through an OTP code when activated.

How to Secure OTP Codes

Although OTP codes are designed to enhance security, users must be cautious in handling them. Failure to do so can make OTP codes a gateway for fraudsters to access accounts.

Here are ways to secure OTP codes:

1. Do Not Share OTP Codes
   OTP codes are private and should never be shared with anyone, including individuals claiming to be official representatives from banks or other services. Service providers will never ask for OTP codes via phone calls or SMS.

2. Be Aware of Phishing
   If you receive a message containing a suspicious link, do not click on it, especially if the message includes an OTP code and asks you to enter it on a website. Be cautious, even if the message claims you have won a prize or that your account is in trouble.

3. Update Contact Information Regularly
   Ensure that your registered phone number and email address are up to date so that you can receive OTP codes promptly.

4. Use an Authentication App
   Apps like Google Authenticator generate OTP codes directly on your device. Consider using such apps to reduce the risk of interception.

5. Enable Multi-Factor Authentication (MFA)
   In addition to OTP codes, add an extra security layer such as biometric authentication to prevent unauthorized access to your account.

Alternative Authentication Methods Besides OTP Codes

While OTP codes enhance security, other authentication methods can serve as alternatives or complements:

1. Biometric Authentication

   This authentication method uses facial recognition technology. It allows users to access their accounts without entering an OTP code. The advantage of biometric authentication is that only the rightful owner can access the account.

   VIDA FaceToken is a biometric authentication technology designed to provide high security. By combining liveness detection and face matching, FaceToken ensures that a user’s biometric identity is directly linked to their device.

   This means that all account-related activities, such as logging in or making transactions, can only be performed by the owner of the biometric identity. This technology not only enhances security but also provides convenience with a quick and easy authentication process.

   VIDA’s biometric authentication is globally recognized by the 2023 NIST Biometric Security Study for its excellence in privacy and biometric security.

2. Physical Token

   You may have seen small, blue-colored tokens from banks. These are known as physical tokens, used to verify transactions. However, carrying a physical token at all times can be inconvenient.

3. PhoneToken by VIDA

   Imagine if a physical token became a digital version embedded in your phone. That’s what PhoneToken by VIDA offers.

   PhoneToken utilizes device-based authentication with Public Key Infrastructure (PKI) technology and biometric verification performed directly on the user's device. By linking a user’s identity to their device, PhoneToken eliminates the need for passwords and OTP codes, making it highly resistant to phishing attacks.

   PhoneToken offers a faster, easier, and more secure authentication method compared to OTP codes. The combination of PhoneToken and FaceToken from VIDA ensures that account activities remain free from phishing attempts.

   Learn more in VIDA’s whitepaper on authentication security.