Cyberattacks are expected to cost businesses $6 trillion by 2021 and let's face it, everybody with an internet connection is a potential target.
This means that any company with an online presence must add additional layers of security to secure their data and procedures against attacks, breaches, and even unintentional staff mistakes.
The technique of sending One Time Pins (OTPs), also known as Two-Factor Authentication (2FA), is effective in verifying a user's identification before allowing them to finish an online task.
SMS has become a popular method for transmitting OTPs throughout the years since it is cost-effective, dependable, and, most importantly, accessible.
1. To confirm one's identity.
It's critical that only the proper people with the right privileges have access to the necessary information, whether it's a customer logging in and making a purchase or a staff member approving an action.
Despite the fact that login credentials are constantly required, a single password is frequently insufficient.
According to research, compromised usernames and passwords were responsible for 63% of all organizational internal data breaches.
This makes sense when you consider that according to Microsoft, 73% of individuals online use duplicate passwords across multiple sites, leaving themselves vulnerable to security breaches.
Companies transmit system-generated OTPs to the user authorized to finish a procedure through SMS to add an additional verification process.
This not only alerts the receiver that action is required, but it also keeps track of who authorized the activity and when.
2. To safeguard vital business procedures.
To boost productivity and decrease human error, businesses are automating internal procedures and workflows.
Insider threats are said to be a problem for 74% of firms worldwide, with irresponsibility accounting for two out of every three incidences.
Many firms have implemented two-factor authentication (2FA) to protect vital procedures and avoid foolish mistakes.
Risk is reduced and costly errors are avoided by simply adding the extra step of inputting a code to complete a procedure – notably in a financial workflow.
3. To keep payments safe.
The most prevalent application of 2FA is to protect online payments.
For years, banks and financial service providers (FSPs) have been handing out one-time passwords (OTPs) to their consumers.
Safer payments and transactions are becoming a priority for any online business, not only FSPs, now that most businesses have a digital component and e-commerce is increasing.
Businesses can provide extra protection for clients making online purchases by employing tokens that replace sensitive data, such as credit card information, with a randomly generated alpha-numeric code (token).
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