Why are one-time passwords important

One-Time Password (OTP) - More security in the network

A one-time password is a password that can be used once and then expires. The German translation of the term is accordingly one-time password or one-time password. One often reads the abbreviation OTP or, derived from it, OTP code.

The one-time password usually consists of an alphanumeric OTP code (letters and numbers) and is generated for each log-in process. After the user has logged in with a one-time password, this loses its validity and can no longer be used for the next login process.

One-time passwords are often used as part of two-factor authentication, for example in online banking, but increasingly also in companies. First of all, the regular login data is entered. The user then generates a dynamic one-time password, for example with a Code generator, which is also required for authentication.

This additional step ensures significantly more security: if an unauthorized person gains access to the regular password during this login process, he will still be missing it dynamic one-time passwordthat is only generated when needed. For this reason, more and more online services are using two-factor authentication - especially when it comes to sensitive data.