A software token is a software app that typically runs on smart phones.īoth hardware OTP token and software OTP app have their pros and cons. A hardware token is a dedicated hardware device for generating one-time passwords, and it is made in various form factors, such as key fob, display card, grid card and usb key. They are often categorized as hardware token versus software token. OTPs are generated by security token devices called OTP tokens. This means that a potential intruder who manages to record an OTP that was already used to log into a service or to conduct a transaction will not be able to abuse it, since it will be no longer valid. A one-time password (OTP) is a dynamic password that is valid for only one login session or transaction. Traditional passwords are static, they are easy to be stolen and vulnerable to replay attacks.
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