Technology has benefited businesses for years. But, it also makes it easier to execute misdeeds with modern hacking tools that may break into the privacy of an organisational data. Thus, every fintech and blockchain organisation must have strong authentication systems. This makes it essential to utilise two-factor authentication to provide added degree of security to safeguard any transaction from being hacked.
Everything people do nowadays is through the internet and it is estimated that there are over 5.25 billion active users on the internet. We consume the internet for our social, personal and professional needs and the growing digitization is making our lives easier.. Consumers are well aware of communication services that are used by organisations to inform them and protect their data.
What is SMS OTP 2FA?
SMS 2FA is a technique of two-factor authentication (2FA) that uses a text message to send a one-time password (OTP) as an extra option. 2FA is an additional layer of protection that ensures that only the account’s rightful owner has access to it. With this technique, the user will first enter a username and password and then be asked to supply further information before accessing their account.
Why do Fintech & Blockchain Companies rely on SMS OTP 2FA?
SMS OTP 2FA decreases the danger of attackers impersonating genuine users by involving a second layer of authentication. Data and account theft are less likely as a result of this. Even if the hacker obtains the user’s credentials from the dark web, they will be missing the other piece of information needed to complete the authentication process. 2FA also involves biometric security in most cases and 77% mobiles have a biometric security enabled which makes it easier to maintain customer privacy.
Global enterprises can utilise the second level of authentication more easily with mobile 2FA. Employees can securely access company programmes, documents, and third-party systems from any device or location without revealing sensitive data.
Reduced Fraud and Increased Trust
Even if the merchant was not responsible for the data leak, most fraud victims avoid visiting particular stores. 2FA increases the level of confidence between the user and the merchant’s site and reduces fraud attempts.
Future of SMS OTP 2FA
Blockchain is a decentralised system that allows numerous people to transact any type of value without the intervention of a third party. They ensure that this sensitive information is never stored in a single database using blockchain. Instead, it can be stored on immutable blockchain nodes that cannot be edited or destroyed. In this approach, a third-party 2FA provider will authenticate user devices using the blockchain network. Each party will securely store the endpoint information on the blockchain network, and the 2FA mechanism will be activated to produce the second-level password.
Creating a network full of security and privacy is crucial in this world of evolving technology and if you wish to build an SMS OTP 2FA for your business data, contact Mtalkz today. It is a fast growing communication service provider and is a one-stop solution for all your problems.