It’s time to move Beyond SMS based OTPS
2024-04-13Moving beyond SMS-based OTPs (one-time passwords) is a crucial step in enhancing security and user experience. While SMS OTPs have been widely used for authentication due to their simplicity and ubiquity, they are vulnerable to various security threats such as SIM swapping, interception, and phishing attacks.
Customers can now access a wider range of authentication methods, tailored to their preferences and technological capabilities. There is an urgent need for Indian service providers to replace SMS-OTP based 2FA with authenticator apps.
SMS messages are inherently insecure. They travel through unsecured networks and can be intercepted by attackers with access to the network infrastructure or specialized equipment. SMS-based OTPs are seen as increasingly outdated and risky compared to more robust and user-friendly options available.
There is sharp increasing in the SIM Swap Scams: In this scam, attackers trick your telecom provider into issuing a duplicate SIM card with your phone number. Once they have the new SIM, they can intercept all your SMS messages, including one-time passwords (OTPs) used for two-factor authentication (2FA).
As it is known fact that, the issue of latency in India's congested mobile networks is a significant challenge for SMS-based OTP delivery. This problem not only leads to failed transactions but also contributes to user frustration and dissatisfaction with OTP systems.
Secondly, Data privacy regulations such as GDPR (General Data Protection Regulation) in Europe have raised concerns about the security of SMS-based OTPs. If these messages contain sensitive personal information, they need to comply with strict regulations, which can be challenging.
With the rapid adoption of smart devices and mobile-first services in India, there's a pressing need for security methods to evolve accordingly. SMS OTP, being archaic and vulnerable to various security threats, no longer meets the needs of today's digital landscape.
With over 150 million users already using authenticator apps like Google Authenticator and Microsoft Authenticator, there's a solid foundation for Indian brands to transition away from SMS OTP and embrace app-based OTP as the standard for secure digital authentication.
While SMS-based OTPs have been widely used due to their simplicity and accessibility, the increasing security risks and technological advancements are driving the exploration of alternative authentication methods to better protect user accounts and data.
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