Two Factor Authentication

Two-Factor Authentication is a means of security check which requires the user to give two sets of credentials from different categories for the purpose of identification; one is typically a physical token and the other a security code.
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Hardware Tokens

One type of factor authentication is receiving a One Time Password (OTP) which is typically carried on your key ring and displays a pseudo-random number that changes periodically, a 'seed record' used to calculate the pseudo-random number.
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Software Tokens

This is exactly the same technology as the hardware version. However, instead of having a separate device, the smartphone can be used to calculate OTP from the 'seed record'.
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SMS Based

Instead of carrying around an extra piece of hardware to calculate the OTP, PIN has been sent to registered mobiles, it provides all power of token less two-factor authentication with zero footprint.

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