OTP Code Fraud is Getting More Rampant, How to Avoid It?

 

The rise of OTP code fraud has begun to worry users of banking, fintech, and e-commerce applications. In this day and age, hackers have now found various ways to lure victims into submitting their OTP code. Once the code has been accepted, the hacker can then gain access to the victim’s account. Indeed, many have been deceived and have lost money within their balance.

An OTP code is an abbreviation of One Time Password, which is comprised of a series of numeric or alphanumeric characters which are generated automatically, authenticating users for a single transaction or session. Generally, an OTP code is sent to users via SMS or email and can only be used once. An OTP is sent by the system either when a user is trying to log in or enter his account, when the user changes or resets an account’s PIN / password, or when the user has changed the telephone or email number used as the account username. The OTP code received will then only be valid for a few minutes.

Why are OTP code so important?

Basically, OTP codes were developed in order to improve cyber security systems, as it can prevent multiple identity theft attacks. OTP codes are also considered a safer form of protection than ordinary passwords. Regular passwords or “static passwords” might be weak and used for an individual’s other platforms. Ordinary passwords are usually stored within the server, making it easy for hackers to steal. As a solution, OTP codes can come in the form of a random number which can only be used once. Because OTP codes play a very important role, it is imperative that the code is not known by anyone else other than the OTP code’s owner.

OTP CODE
Source: www.trzcacak.rs

How to avoid it?

Additionally, OTP theft can occur due to user negligence, having the code hacked from them through brute force attacks. Brute force is a form of cyber-attack carried out through attempting to enter every password until a correct variation is entered. If you are the owner of a platform or application that uses an OTP system, you can avoid this attack through several means, such as:

  • Performing penetration tests to see if there are weaknesses in the system which can be easily exploited through the brute force method.
  • Locking an account more than 3 times after a password attempt is performed.

If you are a user, you can avoid code theft by not informing anyone of your OTP code, even to someone claiming to be an officer of the fintech company you are using.

Also Read: Cyber Security Challenges That Fintech Companies Face

Indonesian Digital Logique Service

To improve your company’s website security and application systems, Logique Digital Indonesia is offering penetration testing services. We have an IT security team that can help ensure that your website and applications do not have exploitable security holes. Please contact us to improve your own website’s security system.

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