Page 639 - 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

A Comprehensive Approach to Transaction Security
Enhancement Using OTP Mechanisms

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2
3
Alok Mishra , Vasanth Tewar , Usha Kosalkar ,
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4
Shubhra Chinchmalapure , Prof. Anupam Chaube
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  SMS-based OTP: OTPs sent via SMS to a registered
The increasing prevalence of online transactions and digital phone number.
banking has made securing sensitive data crucial.
 Email-based OTP: OTPs sent to the user’s email
Traditional authentication methods such as usernames and
passwords are vulnerable to various types of cyber threats, address.
including phishing, man-in-the-middle attacks, and  App-based OTP: OTPs generated using dedicated
credential theft. This paper explores the use of One-Time mobile apps like Google Authenticator or Authy.
Password (OTP) mechanisms as a vital layer in enhancing
3. Mechanisms of OTP Generation and Validation
transaction security. It provides a thorough analysis of OTP
3.1. OTP Generation Process
generation, transmission, and validation techniques,
The generation of OTPs relies on cryptographic algorithms
highlights advantages, challenges, and proposes best
such as HMAC (Hashed Message Authentication Code) or
practices for integrating OTP in modern transaction
algorithms like SHA-1 or SHA-256. For example, in TOTP, the
systems. The study also considers the future of OTP
OTP is generated using the current time (often in intervals)
technology and its evolving role in multi-factor
combined with a shared secret key.
authentication strategies.

3.2. OTP Validation Process
1. INTRODUCTION Once an OTP is generated, the user enters the OTP within a
1.1. Background specific time window. The system compares the entered OTP
As digital transactions continue to grow, they have become with the generated OTP on the server-side, and if they match,
an increasingly attractive target for cybercriminals. One of access is granted. In the case of TOTP, the time-based factor
the major vulnerabilities in digital systems is the reliance on makes the OTP only valid for a short period, enhancing
static authentication methods like passwords. These security.
methods are often insufficient for protecting sensitive data 4. Advantages of OTP in Transaction Security
and user accounts. One-Time Password (OTP) mechanisms 4.1. Increased Security
offer a solution by providing dynamic and temporary By requiring an OTP for each transaction, it significantly
credentials, making it harder for attackers to gain
reduces the risk of unauthorized access even if an attacker
unauthorized access.
obtains the user's password. Since OTPs are short-lived, they
1.2. Objective have a limited window of exploitation.
This paper aims to provide a comprehensive review of OTP 4.2. Prevention of Replay Attacks
mechanisms used to enhance the security of online OTP ensures that each password is unique and valid only
transactions. We will analyze different OTP technologies, once. This mechanism prevents attackers from reusing
their advantages, limitations, and explore a holistic approach intercepted credentials to gain unauthorized access.
to securing transactions using OTPs.
4.3. Multi-Factor Authentication (MFA)
2. Overview of OTP Mechanisms
OTP is commonly used as part of a two-factor authentication
2.1. What is an OTP?
(2FA) or multi-factor authentication (MFA) system.
An OTP is a password that is valid for only one session or Combining OTP with something a user knows (e.g., a
transaction. The primary goal of an OTP is to eliminate the password) and something they have (e.g., an OTP sent to
vulnerabilities associated with static passwords, such as their phone) makes it much harder for attackers to
replay attacks and credential theft. OTPs are typically short- compromise the system.
lived and require no reuse, making them inherently more
secure. 5. Challenges and Limitations of OTP Systems
5.1. Vulnerabilities in SMS-based OTP
2.2. Types of OTP Mechanisms
 SIM Swapping: Attackers can hijack a user’s phone
 Time-based OTP (TOTP): OTPs generated based on the
number to intercept OTPs.
current time and a shared secret key.
 Phishing: Users may fall victim to phishing schemes
 Counter-based OTP (HOTP): OTPs generated using a where attackers impersonate legitimate services and
counter that increments with each request.
steal OTPs.
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