The full form of OTP is “One Time Password“. It is an automatically generated numeric or alphanumeric string of characters that authenticates the user for a single transaction or login session. It is a password that is valid for only one login session or transaction, on a computer system or other digital device. OTPs avoid a number of shortcomings that are associated with traditional (static) password-based authentication
One Time Passwords are an easy and reliable form of Two Factor Authentication and are used to add a second layer of authentication. The risk of fraud is drastically reduced if the user doesn’t only have to fill in his user name and password. one-time password (OTP) messages are unique to every single user and every single login on any digital device.
How OTPs are generatedOTP 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. This secret code changes every 30 or 60 seconds, depending on how the token is configured. Mobile device apps, such as Google Authenticator, rely on the token device and PIN to generate the one-time password for two-step verification.
OTP security tokens can be implemented using hardware, software or on-demand. Unlike traditional passwords that remain static or expire every 30 to 60 days, the one-time password is used for one transaction or login session. This prevents some forms of identity theft by making sure that a captured user name/password pair cannot be used a second time.
Example of OTP:Assume you are using Gmail and google ask you to enable two-step verification if you enable two-step verification then you will receive a OTP every time whenever you log in to your Gmail account and this increases your security.
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