What is an One Time Password (OTP) and How Does it Work?

OTP stands for One Time Password. It is a password that is only valid for one login session and is used to provide an additional layer of security when accessing a system or application.

OTPs are typically generated by a token or a software application, and they are usually sent to the user via SMS, email, or through a mobile app. The user must enter the OTP in order to access the system or application. Once the OTP is entered, it is invalid and cannot be used again.

OTPs are commonly used for a variety of purposes, such as:

1. Two-factor authentication (2FA): OTPs are often used as the second factor in a 2FA setup, where the user must enter both their password and an OTP to access a system or application.
2. Password reset: OTPs can be used to reset a password, where the user is sent an OTP via email or SMS, and they must enter the OTP to reset their password.
3. Account lockout: OTPs can be used to unlock an account that has been locked due to too many failed login attempts.
4. Payment authentication: OTPs can be used to authenticate payment transactions, where the user must enter an OTP sent to them via SMS or email to complete the transaction.

Overall, OTPs provide an additional layer of security to protect against unauthorized access and help prevent fraud.