SMS based one time passwords

One Time passwords as the name suggests are passwords that can be used only one time. It has an expiry date on how long after it has been issued the password can be used. One time passwords are not vulnerable to replay attacks, since the password cannot be used again. It is sent to a person’s registered cell phone via SMS and they are expected to enter it on a website or a kiosk interface. Here in this article you will find how the financial industry or health care institutions use the one-time password. Similar security measure applies to all other industry verticals.

Banking & Financial industry

Before transferring or withdrawing a huge amount from your ATM, a one-time password is sent to your registered cell phone. This password must be received and entered on the screen to make sure you are the authenticated user. What this level of security does is makes sure you have your registered phone, and also know the ATM pin. This validates that you are the right person accessing the ATM and withdrawing or transferring money. The same concept can be built around the web also and HummingBytes has components built around this concept. Visit to download the component.


When trying to access a eDigitial health records, the user is sent a one-time password on their registered cell phone and asked to enter it on the website. This mechanism can be employed on a combination of Web + Email / Web + Voice / Web + SMS channels to ensure that the user is a legitimate user and no information of one person is divulged to another.  Ensures fraud prevention of health records and patient privacy.

Promotion codes

Promotion codes are in fact one time passwords if used right. If the promotion seeks only one time usage of the promotion code then sending a one time password (in this case promotion code) can ensure that the promotion code is tracked and also it is not being misused by have multiple people use the same promotion code.

There are many more uses of the one-time passwords. Security being the primary concern that it assuages. Please go to to read more about our security components and its different uses.


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