Page 637 - Emerging Trends and Innovations in Web-Based Applications and Technologies

International Journal of Trend in Scientific Research and Development (IJTSRD)
Special Issue on Emerging Trends and Innovations in Web-Based Applications and Technologies
Available Online: www.ijtsrd.com e-ISSN: 2456 – 6470

Strengthening Transaction Authentication:
A Study on the Effectiveness of One-Time Passwords (OTP)

1
Anshul Kumbhare , Aditya Tripathi , Usha Kosalkar ,
2
3
Shubhra Chinchmalapure , Prof. Anupam Chaube
5
4
1,2,5 Department of Science and Technology,
4 Department of Computer Science,
1,2,4,5 G H Raisoni College of Engineering and Management, Nagpur, Maharashtra, India
3 Department of Artificial Intelligence, G H Raisoni College of Engineering, Nagpur, Maharashtra, India

ABSTRACT (MITM) attacks. Alternative authentication mechanisms,
In the digital era, transaction security is a growing concern including biometric verification, token-based authentication,
due to increasing cyber threats. One-Time Passwords and behavioral analytics, have been proposed to mitigate
(OTPs) are widely used as an additional authentication these risks.
layer to protect sensitive transactions. This study examines
3. Methodology
the effectiveness of OTPs in securing transactions, their
3.1. Research Design
advantages, vulnerabilities, and potential alternatives. By
This study adopts a mixed-method approach, incorporating:
analyzing case studies and security trends, the research
 A security analysis of OTP mechanisms in different
highlights the strengths and weaknesses of OTP
authentication frameworks.
authentication and proposes improvements to enhance
transaction security.  A case study of past OTP-related fraud incidents.

 A survey of users and cybersecurity professionals
1. INTRODUCTION regarding OTP security concerns.
1.1. Background
With the rise of digital transactions, ensuring authentication 3.2. Data Collection Methods
security has become critical. OTPs, typically sent via SMS, Reviewing cyber attack reports and OTP-related fraud cases.
email, or authentication apps, serve as a temporary Conducting interviews with cybersecurity experts.
verification code for transaction approval. Despite their
widespread use, OTPs have limitations, including phishing Surveying users on their experiences with OTP security.
attacks, SIM swapping, and interception risks.
4. Findings and Discussion
1.2. Research Problem 4.1. Strengths of OTP Authentication
While OTPs add an extra layer of security, their effectiveness Enhanced security: OTPs provide a second layer of
is often challenged by evolving cyber threats. This study verification beyond passwords.
seeks to evaluate whether OTPs provide sufficient protection Ease of use: Users can easily receive OTPs via SMS, email, or
for transactions and explore possible enhancements.
authentication apps.
1.3. Research Objectives
Temporary validity: OTPs expire quickly, reducing the risk of
To assess the effectiveness of OTPs in transaction
reuse.
authentication.
4.2. Weaknesses and Vulnerabilities
To identify the vulnerabilities and security risks associated Phishing attacks: Cybercriminals trick users into revealing
with OTPs.
OTPs.
To explore alternative authentication methods for enhanced SIM swapping: Attackers clone SIM cards to intercept OTPs.
security.
Network interception: OTPs sent via SMS can be intercepted
1.4. Research Questions
using sophisticated attacks.
How effective are OTPs in preventing unauthorized
transactions? 4.3. Alternative Authentication Methods
Biometric authentication (fingerprint, facial recognition, iris
What are the common vulnerabilities of OTP authentication?
scan).
What improvements can be made to strengthen OTP Hardware security tokens (e.g., YubiKey, RSA SecurID).
security?
Behavioral authentication (AI-driven analysis of user
2. Literature Review
behavior).
Several studies have explored the role of OTPs in multi-factor
authentication (MFA). According to security experts, OTPs 5. Conclusion and Recommendations
reduce fraud risks but are not foolproof against social 5.1. Summary of Findings
engineering attacks. Research highlights that hackers exploit While OTPs offer an extra layer of security, they are not
vulnerabilities such as SIM swapping and man-in-the-middle foolproof against evolving cyber threats. Attackers exploit

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