One-Time Passwords (OTPs) are a common and trusted user authentication solution. However, as cyber threats evolve, security pros like you are beginning to feel the limitations of OTPs.
Now, Unibeam offers you a more robust alternative by tying authentication to each user’s SIM card and device. This creates a seamless, zero-touch authentication experience that is both powerful and user friendly.
In this post, we’ll take a dive into OTPs – their history and their flaws. We’ll also look at how Unibeam’s SIM-based user authentication technology offers you superior security, better fraud prevention, and smoother user experience.
A Brief History of OTPs
One-Time Passwords (OTPs) are an old-school security mechanism that most of us have known for a long time. And, in fact, it’s been around for decades. The concept dates back to the 1980s. Yet, as the internet grew, so did the need for stronger authentication.
With the rise of smartphones in the 2000s, OTPs became more accessible. Time-based One-Time Passwords (TOTP) and HMAC-based One-Time Passwords (HOTP) were standardized by the Internet Engineering Task Force (IETF). These algorithms still form the backbone of modern OTP systems. They are still widely used in SMS-based multi-factor authentication.
OTPs are considered secure because they expire quickly, are unique to each login attempt, are easy to use and work on any device. Yet despite their reputation and widespread adoption, it’s clear that OTPs have some serious limitations:
- OTPs are vulnerable to phishing, where attackers trick users into providing their OTP codes. Once the codes are intercepted, they can be used to gain unauthorized access. Even though OTPs expire quickly, a fast-moving attacker can still exploit them.
- OTPs can be compromised through man-in-the-middle attacks, where an attacker intercepts the communication between the user and the authentication server. Like above, if the attacker moves quickly, he or she can use the code before it expires.
- OTPs can be vulnerable to replay attacks, where attackers reuse a captured OTP if the server does not invalidate it immediately after it is used.
- OTPs can be compromised via SIM swapping, where attackers trick mobile carriers into transferring a victim’s phone number to a new SIM card they control. Once the attacker has access to the number, they can intercept OTPs sent via SMS and access accounts.
The real issue is that OTPs transmitted via SMS are not fully secure because SMS systems were not created for security. And OTPs are unreliable because phone networks can be unreliable – if the OTP never arrives, or arrives late (and expires), users get frustrated. This friction discourages adoption and delivers a poor user experience.
Unibeam Outshines OTP
Unibeam prevents unauthorized access by linking user authentication directly to a user’s SIM card – a physical object that has never before been hacked.
Our SIM-based authentication identifies your users by his or her unique SIM card and device. We use the SIM’s unique identifier to authenticate your users without any additional hardware. We provide an added layer of security because any change in the SIM or device – like SIM swap or phone replacement – triggers the system to block automatic log-ins. Your user is then redirected for further verification. This not only strengthens authentication but also protects against fraudulent access.
In addition, Unibeam does not store any personal data on our server. This means that even if the servers get hacked, there’s nothing to steal.
And the best part: Unibeam’s zero-touch authentication is seamless – it doesn’t require your users to do anything. Compare this to OTPs, which annoy users by making them manually enter passwords.
The Bottom Line
One-Time Passwords (OTPs) have been a reliable security measure for decades, but it’s time for security to move forward. OTPs are vulnerable to phishing, SIM swapping, interception and more – and that makes them limited in effectiveness in our modern threat landscape.
Unibeam delivers all the benefits of OTP – simple to use and easily available – and none of the disadvantages. We replace outdated OTP systems with a simple yet highly secure SIM-based alternative.
