Should OTPs be suspended

Secured E-transactions

    From password change to huge volume transactions the 4-digit number has been inevitable which pops all the time for a sign-up or for the lumpsum amount transfer. One Time Passwords (OTP) are rapid movement numbers more than a million times. Life isn't normal without on-time OTP as the bell infuses life to the transaction. If the OTP service malfunctions even for fractions of a percent that would be lakhs of transaction held in midway (no statistics on this). OTPs can be generated in three ways:

• Using a mathematical algorithm to generate a new password based on the previous password.
• Based on time synchronization between the authentication server and the client.
• Using a mathematical algorithm where the new password is based on a challenge.

   

    Telecommunications infrastructure is coming under heavy load at peak times of the day. "It is time to hang up on phone transports for authentication", Alex Weinert bluntly declares, director of identity security at Microsoft. The call type OTPs are susceptible to call forwarding attacks or SIM jacking. 

   Even the worse actor can re-buy a new sim of the same existing customer acting like a victim. The main disadvantage of this mode of authentication is, by design encryption isn't possible, hence not secure. It's never too safe to hold on to a short message OTP. The banking and financial sector is one of the sectors moving rapidly into the digital world from initiating an account to starting a SIP. 

   Banks have many other options to opt for the secured transactions than trusting mobile-based unencrypted texts. The easiest way is to match a combination from both mobile and Email ID which the bank collects by default. Discount Brokers have already started sending authentication files as PDF secured with a password which is the self Permanent Account Number (PAN). But this method is slightly suspended by banks due to some sort of fraud encountered beforehand of early adoption.

   Service of the bank by ATMs are well established throughout the area of a primary footprint. The receipt leaches out on a demanded transaction. The point is, a set of secured numbers can be printed for further transactions of the account holder. This can be another reliable way to transact securities.

   Message encryption can be done with a mode of communication that is already operating on every customer is, WhatsApp. WhatsApp is 100% free on all the services it provides and will continue to without ambiguity. Encrypted messages can be sent and decrypted at the receiver's end with no intervening of 3rd person. Hesitation prevails in every director meeting on trusting a third party application. In case of malfunction or incapability of handling the volume, the blame is on them. The establishment of a new system by a federation constituting most of the countries will take so much effort to be built and implemented.

  Another secure method is using authentication apps offered by Google and Microsoft generates code each minute resides already in which does not need a network connection. Indian Banks have tried their own authenticator but have largely jettisoned them because of a technical glitch. 

   It doesn't matter what solution best suits but to add back up the aging OTP/SMS platform and time, transitioning to more secure transactions. The customer deserves nothing less.

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