OTP or Security tokens, which is more secure?

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What are the differences between one time password (OTP) and security tokens? Is it true that some tokens work as hardware OTP? Which of the two implements a cryptographic challenge response authentication? Can an attacker remotely made an unauthorized transaction while someone is using OTP? are the two part of multilevel authentication?

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Answered By 0 points N/A #187578

OTP or Security tokens, which is more secure?

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One Time Password (OTP) is a password that has validity only for one transaction or one login session. It replaces the traditional way of static password authentication system. The main advantage behind OTP is less prone to security attacks. Security token is an authentication mode in which it requires physical devices to do authorize the user electronically. Biometric systems are the best example of security tokens. Some tokens work as hardware OTPs. OTP has cryptography hash function so that we can say it implements cryptography. The attacker cannot gain access to OTP. Multi-level authentication is the process of combining the OTP and security tokens authentication processes to enhance the security levels.

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