Combatting OTP fraud: 3 best practices for secure online transactions

livemint.com:

OTP (One-time password) fraud, where cyber criminals exploit the digital codes meant to secure transactions and personal data. To combat this threat, it is crucial to adopt a proactive approach.OTPs are a critical security feature in the digital authentication process. They generate a unique code for each transaction that expires shortly after issuance or once it has been used.

This mechanism significantly enhances security by limiting the time window for potential misuse. However, the effectiveness of OTPs can be compromised by sophisticated cyber criminal techniques such as phishing and social engineering. These methods deceive users into revealing their OTPs by impersonating legitimate requests from banks or trusted institutions.Understanding the role of OTPs in your digital security regimen is paramount.

Awareness and education are vital, as no legitimate organisation will request your OTP through insecure channels like phone calls, emails, or text messages. Using secure and verified platforms is critical. Always ensure that you are conducting transactions on legitimate websites.

You can verify the authenticity of the website by checking its URL for the correct domain and encryption. Recognising fraudulent attempts to acquire sensitive information is the first step in safeguarding your digital assets.Implementing a two-factor authentication is a good practice to enhance your protection against OTP fraud. This method adds a layer of safety that requires another form of verification, such as a fingerprint or security question, making unauthorised access more difficult.