What Is OTP Code? Here Are The Functions And Types

Illustration of mobile banking login (Freepik/rawpixels.com)

YOGYAKARTA - The OTP code term is certainly familiar to many people in today's era. OTP codes are needed in the digital era as they are today. When registering and online transactions, you will usually be asked to enter the OTP code. So what is the OTP code?

OTP codes will usually exist when you access important digital platforms, such as mobile banking, e-wallet, and so on. OTP codes will be sent via high school or WhatsApp messages to your registered phone numbers. Some people still don't understand what OTP codes are and their functions are.

The One-Time Passwords (OTP) code is a password that only applies to one use. The OTP code is temporary, will be scorched in a short time and can no longer be used.

Generally, OTP Code consists of 4-6 digits, a combination of letters and numbers. OTP codes are usually needed for verification processes on digital platforms or applications both on mobile phones and websites. OTP codes will be provided to maintain access security in order to avoid cyber crime. OTP codes will be sent to users via SMS, WhatsApp, or email to verify.

The OTP code is one of the two-step authentication methods or two-factor authentication (2FA). This method is applied to provide two-layer security so that personal data is increasingly protected.

Basically, the OTP code is needed in the process of authentication of bank transactions on mobile banking platforms and e-wallet login. These two applications can be called very important or sensitive because they deal with finance, so they must have tighter protection.

The application of the OTP code aims to prevent mobile banking platforms or e-wallets from being broken by other people. Therefore, the OTP code is confidential and should not be known by others. Do not let you force yourself to experience piracy of a secret code called the OTP fraud.

OTP fraud is a cyber crime act committed to exploit money in the victim's mobile banking or e-wallet. After successfully hijacking the OTP code, the perpetrator can misuse data and information for the benefit of harming the victim, both morally and materially.

So every user of m banking and e-wallet needs to keep the OTP code a secret. The goal is that you can avoid possible hacking or account breaches carried out by cyber crime actors.

OTP codes work by using random algorithms as access keys. There are several types of OTP based on the algorithm.

Time-Based OTP (TOTP) works for a specified time interval, typically 1 to 15 minutes. With a time-based authentication process, servers and security tokens, it will create a synchronized password using the same algorithm.

This type of OTP code then works by means of the server determining the request (challenge), which must be responded to by a client or user. Later the user will receive a certain value from the server used to calculate how many OTP codes before being tortured by the server.

Event-based OTP relies on the physical action taken by the user before the password is required. The token and algorithm will be computed based on the previous password, so that it can be validated by the server.

This type of OTP code works by creating and sending it to the user based on an hash algorithm, which synchronizes the OTP code with a change in stages. This gradual change is every time the user gets access to the account.

That's a review of what the OTP code is and its function. The OTP code is a secret password that only applies once and has a short time limit. This code is applied as a layer of security to protect user data from cyber crime threats.

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