We all hear news about big companies getting hacked almost all the time. In this era of cybercrime where hackers are constantly trying to get into people’s bank accounts. How can a typical person like you and me ? stay secure?
This is where multi-factor authentication comes in, which requires users to provide two or more authentication factors to access their accounts. One such method is the HMAC-based One-Time Password (HOTP) algorithm.
In this article, we will explore what HOTP is and how it works to increase security for online accounts.
Before continuing you must know what OTP is and how it works
read below article to get an in-depth knowledge of OTPs and how they work
What is OTP? | One-Time Password Explained
What is HOTP?
HOTP, which stands for HMAC-based One-time Password (? I know short form inside a short form ). HMAC means Hash-based Message Authentication Code. HOTP is a method of multi-factor authentication (MFA) used to enhance online security. It is based on an algorithm that uses a shared secret key to generate a unique password for each authentication attempt.
The authentication system generates and gives users access to the shared secret key. It is crucial to protect this key and not hand it over to anyone like a cup of coffee.
How HOTP works?
To generate a one-time password using HOTP, the authentication system uses a cryptographic hash function to combine the shared secret key with a counter value. The resulting value is then shortened to produce an OTP. The user enters this code into the authentication system as part of the authentication process.
Whenever the user authenticates using HOTP, the counter value is incremented by the authentication system to ensure that the generated password is unique and cannot be used again.
How HOTP is used?
Various businesses that require high security, such as online banking, government services, and healthcare, can utilize HMAC-Based OTPs. It can function as a stand-alone authentication technique or in combination with other factors such as passwords or biometrics.
HOTP safeguards financial transactions and prevents unwanted access to accounts in online banking. It secures sensitive information and prevents identity theft in government services.
All of the authentication apps like Google Authenticator, Microsoft Authenticator, and Authy use TOTP and HOTP methods for generating One time codes.
Advantages of HMAC-Based OTPs
Using HOTP for authentication offers several advantages over traditional password-based authentication methods.
One of the main advantages is that HOTP provides a higher level of security, as it generates a unique one-time password for each authentication attempt. This means that even if a hacker manages to intercept and obtain the password, it will be useless for future authentication attempts.
Furthermore, HOTP is immune to most cyber-attacks, including phishing and replay attacks. ( I won’t be discussing each of them here ?). The use of a shared secret key ensures to increase in the work of any hacker and hardens the authentication process overall.
limitations of HMAC-Based OTPs
Though HOTP provides a high level of security, it has some limitations. Like the need for a shared secret key between the user and the authentication system. Users must keep this key secure, as anyone with access to the key can generate valid one-time passwords. This means that if the key is compromised, the security of the entire system is at risk.
Another restriction of HOTP is the possibility of synchronization problems. Because each authentication attempt generates a new one-time password. The authentication system and the user must be in sync to generate the same password. If the counter falls out of sync, the user might be unable to authenticate, or the system might reject valid login attempts.
HOTP vs. TOTP
HOTP( HMAC-Based OTP ) and TOTP ( Time-Based OTP ) are one of the most prominent multi-factor authentication solutions for increasing internet security. While they both generate one-time passwords, the way these passwords are generated differs.
As previously stated, HOTP employs a counter-based approach to generate one-time passwords for each authentication attempt. TOTP, on the other hand, employs a time-based approach to generate a new password every 30-60 seconds based on the current time and a shared secret key.
HOTP has the advantage of not requiring an accurate clock, and the created password remains valid until used, making it more suitable for offline use. But it also degrades the security of the algorithm a bit as well.
NOTE
The HOTP algorithm requires the use of a counter to generate one-time passwords. This counter needs to be synchronized between the user’s device and the authentication server to ensure that the same password is generated on both ends. If the user’s device is offline, the counter may become out of sync, which can result in authentication failures. However, some implementations of HOTP allow for the use of a time-based counter instead of a sequence-based counter, which can work offline as long as the system clock is accurate.
TOTP necessarily needs a synchronized clock between the user and the authentication system but it eliminates the requirement for synchronization of counters or other shared secrets.
Conclusion
In conclusion, HMAC-Based OTP is a highly secure method of multi-factor authentication that generates unique, one-time passwords for each authentication attempt. It offers several advantages over traditional passwords making it more persistent to any cyber attack.
However, there are some restrictions like; The requirement for a shared secret key and potential synchronization problems. The best two-factor authentication method should be chosen based on the particular use case and everyone should enable two-factor authentication in their accounts.
What does HOTP mean in cyber security?
HMAC-Based OTP or HTOP in short is a 2FA authentication method used to generate an OTP using a secret key and a counter.
What is the meaning of HOTP?
HOTP ( HMAC-Based OTP ) is an OTP-generating algorithm that uses a cryptographic hash function to combine a shared secret key with a counter value producing a new OTP.
Which is better TOTP or HOTP?
Because TOTP uses the fundamental HOTP algorithm while making security-enhancing changes, it is significantly more secure than HOTP.
