OTP-Based Two-Factor Authentication Using Mobile Phones

Two-factor authentication (2FA) provides improved protection, since users are prompted to provide something they know and something they have. This method delivers a higher-level of authentication assurance, which is essential for online banking security. Many banking systems have satisfied the2FA requirements by sending a One Time Password (OTP), something possessed, through an SMS to the user´s phone device. Unfortunately, international roaming and SMS costs and delays put restrictions on this system reliability. This paper presents a novel two-factor authentication scheme whereby a user´s device produces multiples OTPs from an initial seed using the proposed production scheme. The initial seed is produced by the communications partners´ unique parameters. Applying the many from one function to a certain seed removes the requirement of sending SMS-based OTPs to users, and reduces the restrictions caused by the SMS system.