One-Time Passcodes: Explained
What Is a One-Time Passcode?
A one-time passcode (OTP), also known as a dynamic password, is a password that can only be used once, typically during a short period of a few seconds or minutes after the password has been issued.
The OTP has become the standard method worldwide of enabling a login when special circumstances apply, such as confirming you are who you say you are. OTPs are most commonly a six-digit number sent to either the member's registered cell phone or email, then entered by the member into the site or app they're attempting to log into, in this case, Online Banking.
The general idea of a one-time passcode is to add a second layer of authentication to stay ahead of cybercrime and protect yourself against the catastrophic effects of fraud. OTPs come in all shapes and sizes but always add an extra layer of authentication.
What Are The Benefits of a One-Time Passcode?
The adoption of OTPs can offer a more secure alternative to a memorized static password as a part of a multi-factor authentication process. A password that has been compromised would be of little use to someone trying to compromise an account or application.
With static passwords, a hacker or fraudster who obtains a user's password can access potentially sensitive information until that password is changed. In an even worse-case scenario, whoever compromised that account could change the password before its rightful owner could change it and secure their information.
Because of their one-use nature, OTPs have the potential to secure your account so that even if an attacker captures a password, they would not be able to re-use the password in a second attempt. A member who falls prey to a phishing scam or malware that captures their keystrokes would still be protected, and your information would remain safe from conventional password-stealing methods.
How do I Use a One-Time Passcode?
- Log into Online Banking using your typical username and password.
- Choose whether you'll receive the code by email or text.
- You'll receive the OTP code within seconds.
- Then, enter this code correctly—and promptly—to gain access to your account.
To learn more about logging into Online Banking using one-time passcodes, click here.