OTP Code: What is it, What is it for and How does it work?

From bureaucracy to economic transactions, through work, there are many activities that we can carry out online. Precisely considering the importance of the data that we circulate online, it is good to never let our guard down. Unfortunately, there are many cases of password or digital identity theft, through which unauthorized access is carried out that allows scammers to empty, for example, the bank accounts of the unfortunate person in question.

In order to overcome these problems, it is good to use ad hoc tools that help increase the levels of digital security, such as the OTP code. But what is it, what is it for and above all how does it work? Here is some useful information.

What is the OTP code and what does it mean

OTP is an acronym that comes from the English term One Time Password and in Italian means "password valid once".

It is, in practice, a disposable password, valid for a single access session or transaction. Composed of an alphanumeric code generated through a particular technology, the OTP code is used to authenticate the identity of those who register or wish to access a digital service.

Its function is to make the registration and authentication processes more secure, filling those critical issues that are characteristic of traditional access with a single password.

Unlike a static password, the OTP is not vulnerable to so-called replay-attacks, or those activities carried out by individuals or organizations with the aim of taking possession of an authentication credential. It follows that if a potential cybercriminal manages to intercept a disposable password that has already been used, he will not be able to reuse it because it will no longer be valid. In this way, the OTP code guarantees higher security standards compared to traditional passwords.

What is the OTP code for: services that use it

Given the high level of security guaranteed by this technology, OTP codes are used in systems that require identity authentication. These include access to banking applications, social networks and making online purchases. Access to banking apps is one of the cases in which the OTP code is used most frequently. In fact, once the credentials have been entered, you may be asked to verify your identity using the disposable password. This procedure can also be used to confirm a bank transfer or a purchase on an e-commerce site.

But not only that, OTP codes can also be generated in a legal context, such as applying a digital signature. With Aruba, for example, it is possible to obtain the Remote Digital Signature, which is composed of a signature certificate stored on a secure Aruba server and an OTP device or smartphone application in the case of Otp Mobile. Thanks to this service, the holder can authenticate with personal credentials and digitally sign documents via the web, in complete safety.

How the OTP works: how is the One-Time Password generated?

The OTP code is nothing more than a number that must be entered in a specific field in order to complete the authentication or registration phase. This alphanumeric string is generated through a shared-key cryptographic mathematical algorithm.

In practice, a central server sends a code to a recipient system. All this taking into account the passage of time, which is defined thanks to an internal digital clock. Thanks to synchronization, it is guaranteed that each code is connected to the single authentication process. If the time expires, the code will no longer be valid and therefore a new one will have to be generated.

An OTP code, on the other hand, is a disposable password generated automatically by special devices or sent to the user via SMS, email or applications. Each disposable password is generated with a cryptographic function with a unique series of values. The algorithms, in general, are quite different from each other in order to avoid the risk that a cyber criminal can predict the next code.

In particular, an OPT code can be generated using algorithms:

• that work by taking into account the time synchronization between the client and the authentication server;
• in which the password depends on a counter;
• in which the new password is generated by taking into account the previous one.

Where can I find the OTP code?

Over the years, OTP technology has evolved so much that it has seen the development of various systems for generating shared-key mathematical algorithms. In addition to sending via SMS, in fact, there are various ways to receive a One Time Password.

• SMS. One of the most common and used methods involves sending a free message to your smartphone.
• Email. The code is sent to the email address indicated when registering the account.
• Smartphone application. You get the code on the application in use via a push notification.
• Online services. There are specific services on the web used to generate the code.
• Token or USB key. This is an ad hoc device, which has special hardware that must be synchronized to read the mathematical algorithm.

Regardless of the chosen reception method, you will always have a limited time to enter the code and confirm your identity.

What to do if it does not arrive or is blocked?

Due to the failure to receive by the device or due to some problems in the central server, it may happen that an OTP code does not arrive. In this circumstance, you must click on the "send again" item and wait a few seconds. In most cases, you will receive the new code in a few seconds and the problem is solved.

If this does not happen, we recommend trying again to request a new code after a few minutes. If the problem persists and you still haven’t received a code, all you have to do is contact customer service to ask for assistance.

Finally, remember that if you enter an incorrect username and password multiple times, you risk temporary blocking of the user for security reasons. In this circumstance, we recommend waiting at least twenty minutes and then trying to log in again. If the response is negative, even in this circumstance, all you have to do is contact customer care.

Original article published on Money.it Italy. Original title: Codice OTP, cos’è, a cosa serve e come funziona