230699 SIP myths you must know!

We are living in a digital age, where most of our crucial dealings are done ‘online’ or through the internet. Financial transactions through online or electronic mode have been gaining traction in India. According to data released by the National Payments Corporation of India (NPCI), the value of transactions through the Unified Payments Interface (UPI), a payment digital mode, jumped to Rs 5.05 lakh crore in March 2021 and the volumes rose to 2.73 billion.

However, such a huge amount of financial transactions are prone to data theft and hence it has become necessary to take all the steps towards cybersecurity. These transactions are secured through a number of security levels.

One such method to secure financial transactions is through One-Time Password or OTP. OTP systems provide a mechanism for logging on to a network or service using a unique password. As the name suggests, this password can only be used once.

While performing financial transactions through net banking, a person has to fill in all the details such as bank account number, debit/credit card details and the banking password. At the end, a system-generated password is sent to the user’s registered mobile number and registered email address to validate the transaction.

Banks warn their customers via messages or e-mails against sharing this OTP with anyone. Even an unknown person can ask for an OTP in the name of the bank by calling, but the user should not share them with anyone.

Getting information about OTP is considered a crime. Even the bank does not ask for OTP from its customers. Let us provide you with detailed information about it.

What is OTP and 2-step verification?

One-time passwords (OTPs) are an authentication method commonly used as part of two-factor identification (2FA) and multi-factor authentication (MFA) that can help balance these needs. OTPs are unique passwords that are only valid for a single login session for a defined period of time. Because OTPs aren’t reusable, they overcome many of the shortcomings of traditional (static) passwords by not being vulnerable to replay attacks. 

Where is it used?

OTP is a security code, which is 4 or 6 digits long and is used for online transactions. When we buy goods from an e-commerce company, we pay for it with our credit/debit card or through netbanking. After filling in your banking details while making the payment, finally, a security code arrives at your bank registered mobile number via SMS. This 6-digit security code is called OTP. Your digital payment will be successful only after entering the security code received through SMS. 

What is unique about OTP?

The speciality of OTP is that the code generated from it is used only once. It is valid for one time only. If we don’t use the code in a specified time, it will lapse. That is, every time we do an online transaction, these codes are generated separately so that our account remains completely secure. Even if anyone get your username and password they will not be able to use it as OTP would also be needed which will only come on your registered mobile number or on your email id.