Securing digital banking solutions with multi-factor authentication
Why Time-Based One-Time Passcodes (TOTP) should be your primary choice in online banking platforms
Protecting personal and financial information is a top priority for banks and credit unions, especially in digital banking solutions. This is crucial not only for safeguarding individual account holders and businesses but also for maintaining the reputation and trustworthiness of financial institutions.
The increasing sophistication of cyber threats makes it imperative for banks and credit unions to implement layered security measures in their online banking platform. One effective way to enhance security is through multi-factor authentication (MFA), which requires users to provide multiple verification methods before accessing their accounts. By using MFA, financial institutions can significantly reduce the risk of unauthorized access and fraud, thereby protecting sensitive data and maintaining account holder trust. This blog explores various types of MFA, weighing the pros and cons of each.
Short Message-Based (SMS) OTPs
SMS-based one-time passcodes (OTPs) are a common MFA method where a unique, time-sensitive code is sent to a user’s mobile phone via text message. This additional layer of security ensures that only the person with access to the registered mobile number can complete the login process. Given their simplicity and widespread familiarity, SMS OTPs are a popular choice among digital banking solutions for verifying user identities.
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