A one-time password (OTP) is an automatically generated numeric or alphanumeric string of characters that authenticates a user for a single transaction or login session. These codes offer a layer of security, supplementing standard username and password combinations. A typical example includes a six-digit number sent to a user’s registered mobile phone when they attempt to log into their online banking account.
The significance of these codes lies in their ability to mitigate the risks associated with compromised static passwords. They provide a dynamic security measure, becoming invalid immediately after use or after a short period of time. This minimizes the potential for unauthorized access even if the static password has been exposed. They have evolved to become a critical component in safeguarding sensitive information across various digital platforms.
