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What is SMS Based Multi-Factor Authentication

SMS Based Multi Factor Authentication
SMS Based Multi Factor Authentication

SMS one-time password (OTP) is a unique and secure alphanumeric or numeric two-factor authentication text code delivered to a mobile number. The recipient then uses this special numeric code or password as an additional layer of security to log into a service, website, or app.
SMS OTP has become the standard when login into bank accounts or any other financial services. Non-financial organizations are increasingly embracing SMS OTP as well to improve and increase their security.

450 organizations participated in a recent survey by Mobile Ecosystem Forum, and the results about the adoption of SMS OTP were somewhat startling.
Worldwide, 93% of businesses use SMS OTP for verification.

The benefit of SMS for one-time password authentication
SMS is a popular choice for most organizations because it is the only form of communication that can be used by anybody with a phone.
There’s no particular app that needs to be downloaded. It is simple, reliable, and universally understood.
In addition to this, SMS OTP is easy to deploy. All you require is an SMS API integration and you can be up and running in a few hours.

Log in securely with SMS OTP authentication
More and more organizations are upgrading their security systems, as online security and data protection has become vital for any business. One-time passwords (OTPs) are the most popular authentication solution.
Two-factor authentication, often known as 2FA, adds a layer of security to your identity authentication so that your personal or business data is less vulnerable to threats. Users of SMS-based two-factor authentication (2FA) use a numeric code that is sent to them via SMS/text message to confirm their identities. Before a user may access any network, system, or application, 2FA serves as a second layer of security check-in.

How does the SMS OTP work?
SMS OTP is a simple and elegant authentication solution. Let us illustrate this with an example. Suppose you want to log into your financial service app you wouldn’t get access to your account directly after signing in. Your financial app will send you a 2FA verification code on your registered mobile number to authenticate your identity. The authentication is often an alphanumeric code.
Many of the platforms we use on a day to day like Google, Facebook, Twitter, etc use the 2FA SMS OTP authentication method for the security of their users.

Why is SMS OTP authentication considered secure?
With SMS OTP, a person has to be in possession of your phone in order to gain access to your passwords.
SMS OTPs are widely considered safe because it has many benefits over traditional passwords. In the traditional user password system, the usernames and passwords are stored in the network and therefore become vulnerable to replay attacks.

This however is not the case with OTPs. A one-time SMS OTP is sent to you and used to authenticate your identity within a certain time limit/time frame. Even if unused, if the time is exceeded the OTP becomes obsolete. With OTPs, the question of replay attacks doesn’t come into play.
It is very important to always use SMS OTP to authenticate your identity while using a public network such as Wi-Fi at a hotel, at an airport, etc. This significantly reduces the risk of having your data/ passwords stolen by keyloggers.


The instant nature of SMS OTP identity authentication prevents any type of attempts of hacking into your accounts or applications and gives you time to take necessary action if need be. SMS OTP is easy to deploy with Egosms and requires a simple SMS API integration with our platform and you can be up and running in a few hours.

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