Sunday , 25 June 2017

Online Transaction Password

Secure your online transactions: Use OTP

After receiving several complains of misusing the bank account or using credit cards online made RBI to take a step to protect consumers from such frauds. To take upon these frauds RBI directed banks to make online transaction more secure, which in turn led to an additional security level called OTP of verifying the customer from his/her cell number registered with the bank. Now see how this security step works:

In this process the customer is asked to register card for an additional password first. During registration, the user is sent a one time password (OTP) on its registered mobile number. During the set up of additional password, the customer requires to use the OTP and successfully registers for additional password for credit card.

A one-time password (OTP) is a password that is valid for a one time transaction or log in only. It is generated by an OTP device or sent to registered mobile number, email address. It is normally used as an additional measure of security for a critical transaction.

Benefits of using an OTP:

  1. Covering limitations of conventional password: It covers up the limitations of conventional password, which is prone to hacker’s attacks. This makes a log in and transaction secure as because the hacker would be unable to commit a fraud with only the conventional password.
  2. Impossible to guess password: An OTP is generated by using mathematical or time based methods. Complex calculation is used to generate an OTP hence making it difficult for other people to guess.
  3. Secure delivery of password: OTP is normally delivered via SMS on a registered mobile phone. It is alternatively delivered to a registered email also.  Of late, an OTP can be generated using a security token. A security token is associated with the account and a code generated by the token is valid for the associated account only.
  4. One time use: The password is only valid for only for one time usage which makes fraudulent or unauthorized use impossible. An OTP becomes invalid in few hours from its issue.

Here is list of transactions which normally requires OTP

1.    Log in to Bank account
2.    Log in to share trading account
3.    Buy or sell of shares
4.    Registering a new payee for bank account
5.    Fund transfer
6.    Credit card payment
7.    Change in mobile number or address
8.    Debit card use
9.    Ordering cheque book

Hence, make sure if your bank provides for an OTP service, you should subscribe for it. It is always beneficial.

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